[House Report 108-37]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES                 
 1st Session                                                     108-37
_______________________________________________________________________

                                     

                                                  Union Calendar No. 25

                         CONCURRENT RESOLUTION

                         ON THE BUDGET--FISCAL

                               YEAR 2004

                               __________

                              R E P O R T

                                 of the

                        COMMITTEE ON THE BUDGET

                        HOUSE OF REPRESENTATIVES

                              to accompany

                            H. Con. Res. 95

ESTABLISHING THE CONGRESSIONAL BUDGET FOR THE UNITED STATES GOVERNMENT 
FOR FISCAL YEAR 2004 AND SETTING FORTH APPROPRIATE BUDGETARY LEVELS FOR 
                FISCAL YEARS 2003 AND 2005 THROUGH 2013

                             together with

        ADDITIONAL, SUPPLEMENTAL, DISSENTING, AND MINORITY VIEWS




 March 17, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
                        COMMITTEE ON THE BUDGET

                       JIM NUSSLE, Iowa, Chairman
CHRISTOPHER SHAYS, Connecticut       JOHN M. SPRATT, Jr., South 
  Speaker's Designee, Vice Chairman      Carolina,
GIL GUTKNECHT, Minnesota               Ranking Minority Member
MAC THORNBERRY, Texas                JAMES P. MORAN, Virginia
JIM RYUN, Kansas                     DARLENE HOOLEY, Oregon
PATRICK J. TOOMEY, Pennsylvania      TAMMY BALDWIN, Wisconsin
DOC HASTINGS, Washington             DENNIS MOORE, Kansas
ROB PORTMAN, Ohio                    JOHN LEWIS, Georgia
EDWARD L. SCHROCK, Virginia          RICHARD E. NEAL, Massachusetts
HENRY E. BROWN, Jr., South Carolina  ROSA L. DeLAURO, Connecticut
ANDER CRENSHAW, Florida              CHET EDWARDS, Texas
ADAM H. PUTNAM, Florida              ROBERT C. SCOTT, Virginia
ROGER F. WICKER, Mississippi         HAROLD E. FORD, Jr., Tennessee
KENNY C. HULSHOF, Missouri           LOIS CAPPS, California
THOMAS G. TANCREDO, Colorado         MIKE THOMPSON, California
DAVID VITTER, Louisiana              BRIAN BAIRD, Washington
JO BONNER, Alabama                   JIM COOPER, Tennessee
TRENT FRANKS, Arizona                RAHM EMANUEL, Illinois
SCOTT GARRETT, New Jersey            ARTUR DAVIS, Alabama
J. GRESHAM BARRETT, South Carolina   DENISE L. MAJETTE, Georgia
THADDEUS G. McCOTTER, Michigan       RON KIND, Wisconsin
MARIO DIAZ-BALART, Florida
JEB HENSARLING, Texas
GINNY BROWN-WAITE, Florida

                           Professional Staff

                       Rich Meade, Chief of Staff
       Thomas S. Kahn, Minority Staff Director and Chief Counsel
                            C O N T E N T S

                                                                   PAGE
Introduction.....................................................     3
The Economy and Economic Assumptions.............................    11
    Comparison of Economic Assumptions (Table 1).................    20
    Economic Assumptions of the Budget Resolution (Table 2)......    21
Homeland Security................................................    23
Revenue..........................................................    27
Function-by-Function Presentation................................    33
    050 National Defense.........................................    35
    150 International Affairs....................................    38
    250 Science, Space and Technology............................    41
    270 Energy...................................................    43
    300 Natural Resources and Environment........................    45
    350 Agriculture..............................................    48
    370 Commerce and Housing Credit..............................    50
    400 Transportation...........................................    53
    450 Community and Regional Development.......................    55
    500 Education, Training, Employment and Social Services......    57
    550 Health...................................................    60
    570 Medicare.................................................    63
    600 Income Security..........................................    66
    650 Social Security..........................................    71
    700 Veterans Benefits and Services...........................    72
    750 Administration of Justice................................    74
    800 General Government.......................................    78
    900 Net Interest.............................................    81
    920 Allowances...............................................    82
    950 Undistributed Offsetting Receipts........................    83
Summary Tables: Spending and Revenue                                 85
    Comparison of Total Budget Revenues for President's Request 
      and Committee Recommendations (Table 3)....................    87
    Comparison of On-Budget Revenues for President's Request and 
      Committee Recommendation (Table 4).........................    88
    Comparison of Total Budget Revenues for CBO Baseline and 
      Committee Recommendation (Table 5).........................    89
    Comparison of Total Revenues, as Percent of GDP, for CBO 
      Baseline and Committee Recommendation (Table 6)............    90
    CBO Baseline Revenues by Source, in Billions of Dollars 
      (Table 7)..................................................    91
    OMB Baseline Revenues by Source, as Percent of GDP (Table 8).    91
    Tax Expenditure Estimates by Budget Function, Fiscal Years 
      2003-2007 (Table 9)........................................    92
    Fiscal Year 2004 Budget Resolution Total Spending and 
      Revenues (Table 10)........................................   102
    Fiscal Year 2004 Budget Resolution Discretionary Spending 
      (Table 11).................................................   106
    Fiscal Year 2004 Budget Resolution Mandatory Spending (Table 
      12)........................................................   109
    Fiscal Year 2004 Budget Resolution Minus the President's 
      Budget (Table 13)..........................................   113
    Fiscal Year 2004 Budget Resolution Compared to 2003: Total 
      Spending and Revenues, in Billions of Dollars (Table 14)...   116
    Fiscal Year 2004 Budget Resolution Compared to 2003: Total 
      Spending and Revenues, Percentage Change (Table 15)........   119
Reconciliation...................................................   123
Submissions Providing for Economic Growth and Tax Simplification 
  and Fairness (Due 11 April 2003) (Table 16)....................   125
Section-by-Section Description...................................   127
Congressional Budget Process.....................................   135
    Appropriations Committee.....................................   136
    Authorizing Committees.......................................   136
    Adjustments..................................................   136
    Enforcement..................................................   137
Statutory Controls Over the Budget...............................   139
Public Debt Limit................................................   143
Votes of the Committee...........................................   145
Additional Report Language.......................................   177
Other Matters to be Discussed Under the Rules of the House.......   185
    Committee on the Budget Oversight Findings and 
      Recommendations............................................   185
    New Budget Authority, Entitlement Authority, and Tax 
      Expenditures...............................................   185
    General Performance Goals and Objectives.....................   185
    Views of Committee Members...................................   185

                            List of Acronyms

Office of Management and Budget..................................   OMB
Congressional Budget Office......................................   CBO
Gross Domestic Product...........................................   GDP
Budget Authority.................................................    BA
Outlays..........................................................    OT
                              T A B L E S

                                                                   Page
Table 1: Comparison of Economic Assumptions......................    20
Table 2: Economic Assumptions of the Budget Resolution...........    21
Table 3: Comparison of Total Budget Revenues for President's 
  Request and Committee Recommendations..........................    87
Table 4: Comparison of On-Budget Revenues for President's Request 
  and Committee Recommendation...................................    88
Table 5: Comparison of Total Budget Revenues for CBO Baseline and 
  Committee Recommendation.......................................    89
Table 6: Comparison of Total Revenues, as Percent of GDP, for CBO 
  Baseline and Committee Recommendation..........................    90
Table 7: CBO Baseline Revenues by Source, in Billions of Dollars.    91
Table 8: OMB Baseline Revenues by Source, as Percent of GDP......    91
Table 9: Tax Expenditure Estimates by Budget Function, Fiscal 
  Years 2003-2007................................................    92
Table 10: Fiscal Year 2004 Budget Resolution Total Spending and 
  Revenues.......................................................   102
Table 11: Fiscal Year 2004 Budget Resolution Discretionary 
  Spending.......................................................   106
Table 12: Fiscal Year 2004 Budget Resolution Mandatory Spending..   109
Table 13: Fiscal Year 2004 Budget Resolution Minus the 
  President's Budget.............................................   112
Table 14: Fiscal Year 2004 Budget Resolution Compared to 2003: 
  Total Spending and Revenues, in Billions of Dollars............   116
Table 15: Fiscal Year 2004 Budget Resolution Compared to 2003: 
  Total Spending and Revenues, Percentage Change.................   119
Table 16: Submissions Providing for Economic Growth and Tax 
  Simplification and Fairness (Due 11 April 2003)................   125
108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     108-37

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



 
         CONCURRENT RESOLUTION ON THE BUDGET--FISCAL YEAR 2004

                                _______
                                

 March 17, 2003.--Committee to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

        ADDITIONAL, SUPPLEMENTAL, DISSENTING, AND MINORITY VIEWS

                     [To accompany H. Con. Res. 95]


                          The Fiscal Year 2004
                       Wartime Budget Resolution

                               A SUMMARY

                              ----------                              


                              Introduction

    The priorities of this budget are clear and self-evident. 
They are:

 Protecting America: This includes winning the war 
    against terrorism, and safeguarding Americans at home.

 Strengthening the Economy and Creating Jobs: To meet 
    the Nation's challenges, America's economy must be vigorous 
    enough to provide expanding opportunities and growth in 
    Americans' standard of living. The Government has a 
    responsibility to maintain and pursue policies that support 
    economic growth.

 Exercising Fiscal Responsibility: The Government must 
    always strive to achieve its goals without imposing 
    excessive burdens on future generations. For this reason 
    and others, this plan returns to balance within the budget 
    window.

    The discussion below summarizes how these priorities are 
addressed in this plan--the Fiscal Year 2004 Wartime Budget 
Resolution.

                           Protecting America

    The report on last year's House budget resolution began 
with the statement: ``America is at war.'' That is even more 
true today--and not solely because of the impending conflict in 
Iraq, or the growing threats rising from Iran or North Korea. 
These specific international issues are part of a larger, 
global problem in which members of terrorist groups can lurk in 
any city, storing up weapons and cultivating strategy, finally 
attacking the innocent without compunction or provocation.
    These terrorists assaulted Americans several times in the 
1990s, including a 1993 bombing at the World Trade Center. But 
the attack of September 11, 2001, was larger, more deadly, and 
more devastating than Americans had known since Pearl Harbor--
and America changed. The streets outside the Capitol building 
used to resemble those of a quiet neighborhood in almost any 
American town; now they are cluttered with barricades and 
guarded police gates. Airline passengers must routinely allow 
extended time for personal and baggage inspection, and from 
time to time, flights are cancelled and passengers evacuated 
because of real or apparent threats. Americans have come to 
know the Government's frequent warnings of heightened 
vulnerabilities. Businesses face greater security needs; lower 
availability and higher costs of insurance; and generally 
higher risks and uncertainty.
    Finally, whenever there is news of a subway gassed in 
Tokyo, or a school bus bombed in Jerusalem, Americans now know 
it could just as easily happen here. That's the kind of war it 
is; and that's how Americans live today.
    The war against this stealthy, shadowy enemy will likely 
continue for several years, and it will not end with clarity: 
no terrorist leader will sign a formal surrender, and no 
victory parades will stream down Broadway.
    For these and other reasons, the term ``wartime budget'' is 
no mere metaphor. America's security is threatened; it must be 
protected. That is always the highest priority of any national 
government; and it is the highest priority of this budget.

                            NATIONAL DEFENSE

    The budget resolution is consistent with the President's 
requested level as part of a multiyear plan to enable the 
military both to fight the war against terrorism now, and to 
transform the Department of Defense [DOD] to counter 
unconventional threats in the future.
    This strategy is intended to transform the military so as 
to make it agile enough to combat elusive terrorist threats. At 
the same time, the Pentagon's transformation strategy must 
maintain a capability to deal with large conventional forces 
such as North Korea's.
    The resolution also is consistent with DOD's desire to 
maintain pay, benefits, and quality of life programs so as to 
attract and retain highly capable and motivated personnel.
    Among specific provisions are the following:

 A sum of $98.6 billion for pay and benefits, an 
    increase of 5.6 percent. This funds a range of military pay 
    increases from 2.0 percent up to 6.5 percent, targeted by 
    rank and years of service--to help retain DOD's most 
    experienced personnel.

 An increase of $3.4 billion for operations and 
    maintenance, to a total of $117.0 billion for fiscal year 
    2004.

 The highest procurement funding in 14 years: a sum of 
    $72.7 billion is allowed for in the resolution.

 The highest ever research and development level, $61.8 
    billion.

 A 20-percent increase for missile defense, to $9.1 
    billion. The program will focus on fielding an initial 
    capability in 2004 and 2005; this would provide a modest 
    defense against North Korean missiles.

 Full funding of military health care, assuming a total 
    of $27.2 billion.

 A 47-percent increase for Special Operations Forces, 
    including Green Berets.

                           HOMELAND SECURITY

    The budget fully funds the President's request for homeland 
security. This includes (in addition to other things) the 
following:

 A total of $15.6 billion for Border and Transportation 
    Security [BTS], the largest and most complex of the 
    agencies in the new Department of Homeland Security [DHS].

 A sum of $4.8 billion for the Transportation Security 
    Administration [TSA], which will be part of the new Border 
    and Transportation Security Agency in the DHS.

 For the U.S. Coast Guard, $5.6 billion (not counting 
    the Coast Guard retirement fund).

 An infusion of $3.5 billion for grants for ``first 
    responders'' such as local firefighting, and search-and-
    rescue or police forces.

 Full funding for Project BioShield, in which the 
    National Institutes of Health would have new authority and 
    increased flexibility to speed the arrival of medications 
    and vaccines.

 A total of $400 million for the Strategic National 
    Stockpile, which contains drugs, vaccines, and other 
    medical supplies and equipment that can be delivered to any 
    place in the country within 12 hours of a request for 
    assistance; and funding for the National Disaster Medical 
    System, now part of DHS's National Incident Management 
    System.

 Full funding for border inspection and other 
    responsibilities transferred from USDA to the Department of 
    Homeland Security. These include activities of the Animal 
    and Plant Health Inspection Service [APHIS], and the Plum 
    Island Animal Disease Center in New York.

 Disaster relief funding at its historical levels. The 
    budget includes $3.2 billion for the Federal Emergency 
    Management Agency [FEMA], now part of DHS.

 Full funding for the Bureau of Citizenship and 
    Immigration Services.

 A 9-percent increase for the Secret Service, to $1.3 
    billion.

                Strengthening the Economy, Creating Jobs

    A flexible, well-functioning economy that promotes high 
standards of living is a fundamental expression of the Nation 
itself. It provides a way of measuring national vitality, and 
helps demonstrate President Reagan's conviction: ``We are a 
Nation that has a Government--not the other way around.''
    When healthy, the economy nourishes the Nation--by 
providing expanding opportunities for Americans to improve 
their circumstances through their own efforts, and by 
generating material and financial resources to support the 
Nation's needs (such as its defense and security) and improve 
standards of living.
    Today's economy continues to struggle from the triple shock 
of the past 2 years: a slowdown and recession inherited by the 
current administration; an unprovoked terrorist attack on the 
American homeland; and the uncertainties that accompany today's 
wartime conditions. Without renewed growth and more jobs 
America cannot meet its challenges. Hence economic growth and 
job creation is a major priority of this budget.

                    ECONOMIC GROWTH PLAN PRINCIPLES

 Immediate Help: Accelerating income tax rate cuts, 
    attacking double taxation, and reducing the overall Federal 
    tax burden will enhance the current economic recovery by 
    increasing consumer spending and individual and business 
    investment, and creating jobs.

 Sustained Future Growth: New tax reductions, and 
    making the 2001 tax relief permanent, will strengthen the 
    American economy in a sustained manner, and promote GDP 
    growth and job creation in the long-term.

 A Path to Fiscal Balance: To meet the anticipated 
    needs and growing demands on the Federal Government over 
    the next 10 years and beyond will require significant 
    revenue growth resulting from achieving and maintaining 
    economic growth of at least 3 percent to 4 percent a year. 
    The economic growth plan in this budget provides the best 
    chance of achieving this.

 Progressivity: The biggest percentage reduction in 
    individual income taxes would go to lower- and middle-
    income taxpayers.

                       POSSIBLE GROWTH COMPONENTS

    Specific provisions of the growth plan will be determined 
by the Committee on Ways and Means. Nevertheless, the revenue 
figures in the budget resolution would accommodate the 
President's growth and jobs plan, including--as examples--the 
following provisions:

 Accelerated expansion of the 10-percent individual 
    income tax bracket.

 Accelerated reduction of individual income tax rates.

 Accelerated marriage penalty relief.

 Accelerated increase of the child tax credit.

 Relief from the Alternative Minimum Tax.

 Small businesses investment incentives.

 Elimination of the double taxation of corporate 
    earnings.

                      FAIRNESS OF THE GROWTH PLAN

    The growth plan called for in the budget resolution--if 
designed similar to the President's--would be progressive. Here 
are some examples:

 The biggest percentage reduction in individual income 
    taxes would be for taxpayers making between $30,000 and 
    $40,000. Their reduction in taxes could be more than 20 
    percent.

 Next are taxpayers with less than $30,000 in income; 
    their individual income taxes would be reduced 17 percent. 
    Taxpayers making $40,000-$50,000 could see a 14.5-percent 
    tax cut.

 Taxpayers with incomes greater than $100,000 could get 
    the smallest percentage change in their individual income 
    taxes at 11 percent or less.

 Lower-income taxpayers could pay less. Taxpayers 
    making up to $50,000 could pay a smaller share of total 
    individual income taxes than before (2.9 percent vs. 3.8 
    percent). Taxpayers making more than $100,000 could pay 
    more (73.3 percent vs. 72.4 percent).

                       EXTENSION OF 2001 TAX CUTS

    The budget resolution also provides for permanent extension 
of the provisions of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 that otherwise will expire in 2010.
    The resolution accounts for policies that would permanently 
extend marginal individual income tax rate reductions expiring 
in 2010; child tax credits expiring in 2010; marriage penalty 
relief expiring in 2010; education incentives expiring in 2010; 
repeal of estate and generation-skipping transfer taxes and 
modification of gift taxes expiring in 2010; modifications of 
individual retirement accounts and pension plans expiring in 
2010; and other incentives for families and children expiring 
in 2010; the research and experimentation tax credit expiring 
in 2004; and suspension of disallowance of certain deductions 
of mutual life insurance companies.

                         ADDITIONAL TAX RELIEF

    Finally, the budget accommodates additional tax relief over 
the next 10 years. The particular mix of tax policies this 
amount would entail will be determined by the Committee on Ways 
and Means, but could include:

 Incentives for charitable giving, health care, and 
    energy production, conservation and reliability, as well as 
    making the R&D tax credit permanent and temporarily 
    extending currently expiring provisions.

 Tariff and other revenue effects of various trade 
    initiatives.

                 OTHER COMPONENTS OF ECONOMIC SECURITY

    The resolution also meets other critical obligations, 
including:

 Endorsing fundamental Medicare reform, including $400 
    billion over 10 years for prescription drug coverage.

 Providing the Federal share of funding for highways 
    and mass transit.

 Protecting Social Security--which will be strengthened 
    by a growing economy.

 Maintaining the welfare reform strategy that has 
    reduced welfare rolls by 50 percent.

 Providing for reform of Medicaid, with greater 
    flexibility so that States can cover more of their 
    uninsured populations.

 Continuing unemployment insurance, to provide a safety 
    net for those having trouble finding work in these 
    difficult times.

                         Fiscal Responsibility

                     THE NEED TO BALANCE THE BUDGET

    Contending with the crises of the past 2 years has driven 
the Federal budget into deficit. This outcome is understandable 
and manageable at present--but not for the long term. Economic 
growth, encouraged by the policies described above, can play a 
key role in shrinking deficits. But another necessary component 
is spending restraint. Consider:

 In the period from 1998 through 2003, overall 
    Government spending increased an average of 6.7 percent a 
    year, and discretionary spending grew an average of 7.7 
    percent a year (with both figures excluding interest).

 These figures include the impact of recent emergency 
    spending and the war against terrorism--but those factors 
    only reinforce the need to take firm control of spending.

    Among these recent spending trends have been the following:

 Defense appropriations grew 45.7 percent from 1998 
    through 2003, an average of 7.8 percent a year (including 
    the 2003 omnibus appropriations bill).

 Funding for the National Institutes of Health was 
    doubled, from $13.6 billion in 1998 to $27.2 billion in 
    2003.

 Since Republicans took the House Majority in 1995, 
    Federal funding for special education has increased an 
    average of nearly 22 percent a year.

 Veterans medical care increased 40 percent--from $17.1 
    billion in 1998 to $23.9 billion in 2003--an average 
    increase of 6.9 percent a year.

    These and other spending initiatives were important. But 
the Government must not return to excessively burdening 
tomorrow's generations with today's costs. The Government also 
must position itself to meet the mounting obligations that will 
come with the baby-boom retirements and accompanying demands.

                       THE STRATEGY IN PRINCIPLE

    The first step in this process is to restore the budget to 
balance, accomplished through economic growth and spending 
restraint. Therefore, this budget calls for a 1-percent 
spending reduction--a real reduction--in all Government 
programs except those of the highest priority. Programs exempt 
from this discipline are national defense, homeland security, 
Social Security, and Unemployment Insurance.
    This is not a matter of ``slowing the growth'' of spending, 
or ``reducing from the baseline.'' These are real reductions. 
They are calculated from the base of actual spending in fiscal 
year 2003--not from an estimated future level that already 
include built-in, automatic growth. The approach is based on 
the commonsense meaning of cutting spending--and that is what 
this budget does.
    Because such reforms may be challenging, the budget allows 
committees of jurisdiction the option of implementing one-third 
of the savings in the first year. With this spending 
discipline, the budget restores fiscal balance in 7 years, 
according to projections of the nonpartisan Congressional 
Budget Office. This is based on standard, conventional CBO 
estimates, without assuming the benefits of economic growth 
that may result from the budget's tax cuts or deficit 
reductions.

                       IMPLEMENTING THE STRATEGY

    To further clarify the spending restraint assumed in the 
budget, here is a point-by-point summary:

 Committees must reduce spending by 1 percent. In 
    general, the budget requires that the committees of 
    jurisdiction reduce spending by 1 percentage point from 
    current year (2003) levels. The reductions are applied by 
    committee, not by program. It is up to the committees of 
    jurisdiction to find the savings necessary to meet the 
    levels of spending recommended in the budget resolution.

 The reduction does not mean 1 percent is cut each 
    year. The 1 percentage point reduction is taken one time, 
    in fiscal year 2004, and then the program is assumed to 
    grow at the same rate as before. The savings are expected 
    to recur in following years, so that the benefits of the 
    one-time reduction become substantial over time.

 Small savings now cause large savings over time. The 
    1-percent spending cut is assumed to be a permanent change 
    in Government spending. Small permanent changes in spending 
    can make a big impact over time. It is this principle that 
    permits this budget to balance as a result of the one-time 
    change in the levels of spending.

 The cut affects both mandatory and discretionary 
    spending. The expected level of spending for fiscal year 
    2004 is computed the same way for both mandatory and 
    discretionary programs: spending in fiscal year 2004 is 
    expected to be 1 percentage point below the 2003 levels of 
    spending.

 Despite the 1-percent reduction, other factors cause 
    total spending to rise. Overall Government spending will 
    not be lower next year than this year because more will be 
    spent on national needs such as defense and homeland 
    security. Also other increases in programs such as 
    Medicare, Medicaid, and Unemployment Insurance benefits 
    cause spending to be higher in 2004 than 2003.

 The Budget Committee cannot dictate how to achieve the 
    savings. It is not the role of the Budget Committee to tell 
    the authorizing committees how to reach their reduced 
    spending levels. The committees of jurisdiction make the 
    final decision about how to achieve those savings. The 
    directives must be achieved by the authorizing committee or 
    the Budget Committee may be asked to recommend changes. If 
    an authorizing committee cannot achieve the savings, it 
    will fall to the Budget Committee to make recommendations 
    with policy changes that will achieve the recommended 
    levels of cuts.

    These are the general guidelines. They will be enforced 
through the 302(a) allocations to the Appropriations Committee 
and the authorizing committees. Where further specific 
provisions apply, they are discussed in the appropriate 
functional description.

                               Conclusion

    As noted at the outset, this budget has three priorities:

 Protecting America.

 Strengthening the economy and creating jobs.

 Exercising fiscal responsibility.

    It strikes a balance among all three priorities; and it 
recognizes the need to balance the urgent demands of the 
present against America's obligations to the future. It is, to 
put it simply, a budget that fulfills America's promise--for 
today and tomorrow.


                  The Economy and Economic Assumptions

                              ----------                              


           Economic Policy and the Performance of the Economy

                           CURRENT CONDITIONS

    The U.S. economy remains in a sluggish and uneven recovery 
from the economic slowdown and recession of 2000-2001. Growth 
of real GDP has averaged 2.9 percent at an annual rate 
following the declines that occurred during the recession--but 
the growth pattern has been volatile (see chart below).

 Despite the average real growth of nearly 3 percent, 
    the economy continues to struggle with key sectors and 
    markets remaining stagnant--notably manufacturing, business 
    investment, and employment. Persistent uncertainties--
    partly due to international tensions--continue to hamper 
    the economy.

 Sustained stronger growth of real GDP--in excess of 
    3\1/4\ percent--will be required to boost job growth and 
    business investment and to reduce unemployment.
    
    
 The current Blue Chip outlook projects only a gradual 
    increase in real GDP growth and a slow decline in the 
    unemployment rate (see charts).
    
    
                        RECENT ECONOMIC HISTORY

    Economic growth had already begun decelerating sharply 
before President Bush took office. The claim that the economy 
was humming when President Bush took office is simply wrong. 
This is important because misunderstanding recent economic 
history can lead to ineffective, or even counterproductive, 
policies.

 In 2000--the last year of the previous 
    administration--the real GDP growth rate plunged from 4.8 
    percent in the second quarter to 0.6 percent in the third 
    quarter.

 The recession in the manufacturing sector actually 
    began in June 2000, when industrial production peaked and 
    thereafter began to decline. Manufacturing production had 
    already fallen by 2\1/2\ percent by January 2001, when 
    President Bush took office. A quarter of a million 
    manufacturing jobs already were lost from July 2000 to 
    January 2001. New orders for manufacturers' durable goods 
    had declined 20 percent by January 2001 from their peak in 
    June 2000.

 The stock market bubble peaked in early 2000 (the Dow-
    Jones Industrial average peaked in January; the Standard & 
    Poor's 500 index peaked in March). By the time President 
    Bush assumed office, the bubble had burst and the S&P 500 
    index had already fallen 12 percent in value.

 It is noteworthy that the previous administration, in 
    1999 and 2000, refused to cut taxes, even though tax 
    revenue was at post-war record levels of 20 percent of GDP 
    or more.

 In December of 2000, President-elect Bush warned 
    publicly that the economy was slipping toward recession, 
    and that Congress should cut taxes. The outgoing 
    administration accused him of ``talking down'' the economy.

    But in 2001, Congress and President Bush acted--even before 
the recession had been officially declared. Monetary policies 
also shifted toward promoting economic growth.

 In June 2001, the President signed the Economic Growth 
    and Tax Relief Reconciliation Act of 2001 to reduce the tax 
    burden and stimulate the slowing economy.

 The Federal Reserve cut the Federal funds rate 11 
    times in 2001, resulting in a total reduction of 4\3/4\ 
    percentage points for the year.

    Then terrorists attacked the Pentagon and the World Trade 
Center--as they had planned since the mid-1990s--and risk and 
uncertainty rose in the aftermath. But the shock to the economy 
from the attacks of September 11 depressed consumer and 
business confidence and ushered in a sustained period of slower 
growth and heightened risk and uncertainty.
    Nevertheless, the 2001 tax relief was timely and helped 
keep the recession from being worse. It wasn't until the end of 
November 2001 that the National Bureau of Economic Research 
officially declared that the recession had begun in March of 
2001--9 months after the fact, and nearly 6 months after the 
tax relief legislation had been implemented.

 At the time of the tax relief bill's passage, 
    Macroeconomic Advisers--a respected private forecaster--
    labeled the tax cut package a ``Fiscal Policy Bull's-eye,'' 
    stating: `` * * * once in a while we get lucky, and fiscal 
    policy delivers to the economy a well-timed dose of 
    stimulus. This year's tax cut is perhaps the best such 
    example in recent memory.''

 By the third quarter of 2001--in the middle of the 
    recession, yet even before the recession had been 
    declared--tax rebate checks totaling nearly $40 billion 
    were mailed out to taxpayers, helping to bolster household 
    finances and promote consumption spending, precisely when 
    it was most needed.

 These policy actions helped to keep the recession from 
    being more severe. It should be remembered that, as in all 
    recessions, jobs were lost and unemployment rose--bringing 
    their related costs--but the 2001 recession was relatively 
    mild compared to other recessions historically.

    In March 2002, Congress and the President acted further, 
passing the stimulus of the Job Creation and Worker Assistance 
Act of 2002. This legislation was targeted precisely at the 
areas of weakness in the economy: extended unemployment 
benefits to help with higher unemployment; and, partial 
expensing of business equipment and software expenditures to 
help bolster investment.
    Following the recession, the bursting of the stock market 
bubble, and the introduction of increased risk and uncertainty, 
the economy has emerged into a slow and uneven recovery. 
Increased uncertainty and slow overall growth in the economy 
have created an environment in which businesses lack sufficient 
confidence to boost investment or hiring.



 An important aspect of the slow recovery is the lack 
    of growth in jobs (see chart). The sharp decline in 
    payrolls of 308,000 in February reveals the ongoing risk of 
    a renewed downturn in the economy this year.

 Continued higher growth in labor productivity (output 
    per hour of work) boosts real output, wages and salaries, 
    and standards of living in the long run. In the short run, 
    however, higher productivity growth has allowed businesses 
    to expand output without hiring additional workers. As a 
    result, total wage and salary income has continued to grow 
    following the recession, despite the lack of increased 
    employment.

 The manufacturing sector and business equipment 
    investment have been stagnant with industrial production 
    and manufacturers' new orders and shipments remaining 
    little improved from the recession lows.

 Business structural investment also has been stagnant 
    in recent months, following a large decline from the 
    recession. Lower real economic growth, higher uncertainty, 
    and the combination of lower availability and higher costs 
    of insurance have resulted in a 30-percent decline in real 
    business construction spending from its pre-recession level 
    (see chart below).

    
    
 The sharp rise in crude oil prices over the past year 
    and a half--from less than $20 per barrel at the end of 
    2001 to nearly $40 a barrel recently--is boosting gasoline 
    prices and energy costs generally, acting as an additional 
    drag on the economy.

 One bright spot in the economy is the continued strong 
    performance of the housing sector, with continued high 
    rates of housing starts and home sales. Increased home 
    valuations have contributed to household wealth--helping to 
    cushion the effects of the negative wealth effects from the 
    decline in the stock market. Despite the large declines in 
    stock market wealth, consumer spending has continued to 
    grow throughout the recession and slow growth period of the 
    past several years.

 Even so, faced with higher uncertainty and stagnant 
    employment prospects, consumer confidence has fallen 
    recently to its lowest level in 10 years, contributing to 
    the risks of sustained stagnation in the economy as a 
    whole.

                The Need for Policies to Promote Growth

    Significant economic risks remain. The economy could 
continue to exhibit sub-par performance with ongoing slow 
growth and persisting higher unemployment. The possibility of a 
renewed downturn cannot be ruled out.
    When will the economy return to higher growth and lower 
unemployment? Ultimately, the economy is expected to recover 
and return to its potential growth path with sustained growth 
in jobs, and with the unemployment rate falling back toward its 
non-inflationary level (about 5 percent).

 The Blue Chip private consensus forecast and the CBO 
    forecast both show that happening over the next 3 to 4 
    years.

 But given the slow recovery and the uncertain nature 
    of economic forecasting, issues that remain in question 
    are: How long will it take to return to sustained growth? 
    Could the economy actually do worse than expected? Can 
    Congress do something to help assure the economy gets back 
    to potential faster?

 Monetary policy often is viewed as being better 
    oriented to ``help the economy get back to potential 
    faster.'' But as demonstrated in 1990-92, and in the 
    current recession and recovery, monetary policy does not 
    always move fast enough or have enough effect up front to 
    boost the economy.

 In policy statements and Congressional testimony, the 
    Federal Open Market Committee [FOMC] and Fed Chairman 
    Greenspan have adopted the position that monetary policy 
    has done enough, and that the interest rate cuts and tax 
    cuts already implemented will be sufficient to boost the 
    economy once the uncertainty of the geopolitical situation 
    is resolved.

 The recent sharp decline in consumer confidence 
    coupled with the fall in employment in February--when 
    payrolls fell by 308,000 jobs--illustrates the fragile 
    nature of the recovery and the risks for further job 
    losses.

    Doing nothing is unwise. President Bush has been aggressive 
in making proposals to boost the economy, primarily through tax 
cuts. The President recognizes that it isn't wise to sit back 
and wait and hope for monetary policy to work and for the 
economy to recover on its own.

 Chairman Greenspan and the Fed are assuming that the 
    economy is continuing to struggle almost solely because of 
    geopolitical uncertainty; but they also implicitly assume 
    that the uncertainty will be eliminated, apparently almost 
    immediately.

 The Fed is more optimistic about the economic outlook 
    than many private forecasters. For example, Goldman Sachs 
    economists recently said, ``We don't share the FOMC's 
    optimism. In our view, Chairman Greenspan is putting too 
    much weight on geopolitical uncertainties as a constraint 
    on capital spending and economic activity. We believe that 
    the economy will grow much more slowly * * * than the Fed's 
    central forecast'' (14 February 2002).

 Some contend the Fed may be understating the risk that 
    the economy will perform less well than the Fed's 
    assumptions. That view argues for additional pro-growth 
    policies to be adopted today.

 If the Fed is concerned about ``running out of 
    ammunition''--because interest rates already are so low--
    that argues even more for the adoption of additional fiscal 
    policies to augment monetary policy in a time when the 
    latter may have limited latitude for action.

 The President and the Congress should act to adopt 
    policies that will promote growth and job creation.

    The President's economic growth plan focuses on new and 
accelerated permanent tax reductions. The budget resolution 
accommodates the President's plan--or one similar to it--to 
promote economic growth and jobs. The President's plan 
accelerates the reductions in personal income tax rates from 
the 2001 legislation and proposes the elimination of the double 
taxation of dividend income--as well as establishing the tax 
cuts on a permanent basis. Congress will work its will on 
determining specific policies. But some aspects of the 
President's plan should be kept in mind.

 The reduction in income tax rates generates strong 
    incentives for boosting sustained economic growth. The 
    reduction in the top rates is particularly important as 
    economic evidence shows that those taxpayers are the most 
    responsive to the tax changes, in terms of increasing 
    taxable income and tax payments.

 Economists recognize that permanent reductions in 
    taxes and marginal tax rates will have significant 
    beneficial economic effects, especially compared to 
    reductions that are only temporary.

 The proposed elimination of the double taxation of 
    dividend income is a change that would be part of any 
    reasonable comprehensive tax reform. Regardless of whether 
    it would have an immediate beneficial stimulus effect or 
    not (and it would, especially through gains in the stock 
    market), it is a preferred tax policy change to make. The 
    elimination of the double taxation promotes investment by 
    reducing the cost of capital and improving efficiency.

    Beyond its immediate economic benefits, the President's 
plan also is good for other reasons, including the specific 
groups it benefits. Among specific groups that would benefit 
are the following:

 Small-businesses would benefit from the higher 
    investment expensing as well as the lower marginal tax 
    rates.

 Married couples would benefit from the reduction in 
    the marriage penalty--perhaps one of the most egregious 
    sins of the tax system from a social perspective.

 Families would benefit from the increase in the child 
    credits.


                     FORECASTERS' ESTIMATES OF THE EFFECTS OF THE PRESIDENT'S GROWTH PACKAGE
                              [Average estimated effect, difference from baseline]
----------------------------------------------------------------------------------------------------------------
                                                   2003       2004       2005       2006       2007       2008
----------------------------------------------------------------------------------------------------------------
Effect On:
    Real GDP Level (% change).................        0.3        1.2        1.0        0.6        0.3        0.2
    Unemployment rate (% points)..............       -0.2       -0.7       -0.6       -0.3       -0.1       -0.1
    Job Gain From Baseline (1,000 Jobs).......        291      1,203        959        455        192        167
----------------------------------------------------------------------------------------------------------------
Note.--Business Roundtable, Economy.com, Global Insight, Heritage Foundation, Macroeconomic Advisors, National
  Association for Business Economics Survey, and Primark Decision Economics.

             Conservative Projections in Budget Resolution

    Economic forecasting is imprecise; nonetheless all budget 
projections are based on economic assumptions. Even though it 
is difficult to make economic and budget forecasts, the effort 
to improve accuracy suggests that we take account of all 
available information. Economic assumptions that properly 
account for all of the factors and information that are 
expected to affect the performance of the economy would include 
the policies that are part of the budget if they have 
discernible economic effects.
    Private forecasters generally agree that the President's 
proposed tax reductions would boost growth significantly in 
2003 and 2004, and promote higher real GDP, increased job 
growth and lower unemployment rates over the next several years 
(see table).

 An average of private forecasters' estimates shows the 
    President's plan boosting real GDP by about 1\1/4\ percent 
    in 2004.

 The estimates also show the plan cutting the 
    unemployment rate by \3/4\ percentage point in 2004. That 
    represents an increase of more than 1 million jobs.

    ``Dynamic'' estimates would show the beneficial economic 
``feedback'' effects and smaller deficit effects from tax 
relief. A proper accounting for the beneficial economic effects 
from the policies to promote economic growth--and the resulting 
beneficial budget effects--would at least partially offset the 
scored deficit effects from the proposed tax relief. 
Nevertheless, the budget resolution is conservative about the 
economic and budget estimates; those used in the resolution do 
not include any of the beneficial ``dynamic'' feedback effects.

      SUBSTANTIAL SHORT-RUN BENEFITS, UNCERTAIN LONG-RUN BENEFITS

    The policies assumed in the budget resolution would 
generate substantial short-run benefits. As shown in the table, 
private forecasters generally agree that the tax relief 
proposals of the President's ``Growth and Jobs'' plan would 
boost GDP and employment. Beneficial economic effects of that 
magnitude would produce significant dynamic budget feedback 
effects, with the likely budget benefit in the range of $25 
billion to $40 billion per year.
    The tax relief proposals also would have long-run 
beneficial effects, including: incentive effects of lower 
marginal income tax rates; higher investment from a lower cost 
of capital because of lower taxation of capital income; and, in 
general, efficiency gains from more efficient allocations of 
resources.
    A policy proposal with persisting large deficits would 
raise concerns about adverse long-run economic effects. From 
the view of conventional economic theory and evidence, 
persisting long-run deficits would have negative effects on 
national saving, which in turn would adversely affect 
investment and the level of real GDP and incomes in the long-
run. The ``long run'' in such cases would be at and beyond the 
10- to 15-year horizon. But we have to be cautious about such 
estimates: the reliability of economic and budget forecasts 
that far in the future is highly suspect.
    In large measure, the question of determining whether 
significant long-run effects can be identified depends 
fundamentally on determining the correct baseline for 
comparison. For example, CBO typically uses its current 
services baseline projection as the baseline for comparison for 
alternative policy scenarios--as it is required to do under 
scoring conventions. But a current services baseline that shows 
projected accumulating surpluses in the out years--as the 
current CBO baseline does--is a naive baseline that is unlikely 
to be realized. When considering a naive baseline projection 
that shows budget surpluses, a better baseline for comparison 
in the long run is a baseline of very rough budget balance.

 Budget projections are subject to large projection 
    errors, and errors that grow as the projection horizon 
    expands (see CBO, The Budget and Economic Outlook, January 
    2002, pp. 89-100). At a 5-year horizon, CBO's budget 
    projections have had an average absolute forecast error of 
    more than 3 percent of GDP. Such errors increase in 
    magnitude as the budget projection horizon increases. At 
    the 10-year horizon the typical budget deficit projection 
    error likely would be much larger than 3 percent of GDP.

 Historical behavior and evidence show that budget 
    surpluses in the absence of tax cuts lead to increases in 
    spending that reduce subsequent surpluses (see Calomiris 
    and Hassett, ``Marginal Tax Rate Cuts and the Public Tax 
    Debate,'' National Tax Journal, March 2002).

    The policies of the budget resolution reduce taxes and 
restrain spending growth, with the budget returning to balance 
in 7 years. The public debt is projected to decline 
significantly relative to GDP. Under such a budget outlook, no 
credible arguments can be raised suggesting any significant 
negative economic effect in the long run through savings 
effects or financial markets.
    In sum, a variety of uncertain factors must be considered 
in determining the possible long-run effects. Such factors 
include: the potential benefits from a lower tax burden and 
associated reduction in dead-weight losses in the economy; 
unreliable long-run economic and budget projections; and an 
uncertain proper baseline for comparison. On balance, the 
conclusion must be that the estimated long-run economic effects 
associated with the policy underlying the budget resolution are 
positive--because of its adherence to fiscal responsibility and 
spending restraint, and the beneficial effects from reducing 
taxes and the size of the Government.

                   Comparison of Economic Assumptions

GDP growth
    OMB: The assumptions employed by the administration's 
Office of Management and Budget [OMB] project real gross 
domestic product [GDP] growth rates of 2.9 percent in calendar 
year 2003, 3.6 percent in 2004, 3.5 percent in 2005, and 3.3 
percent in 2006.
    CBO: The Congressional Budget Office [CBO] projects real 
GDP growth rates of 2.5 percent in 2003, 3.6 percent in 2004, 
3.4 percent in 2005, and 3.3 percent in 2006.
    Blue Chip: The Blue Chip Consensus (March 2003) projects 
2.6 percent in 2003, 3.6 percent in 2004, 3.4 percent in 2005, 
and 3.3 percent in 2006. (See table 1, next page).

Inflation
    OMB: The administration projects inflation rates of 1.3 
percent and 1.5 percent in calendar year 2003 and 2004 for the 
GDP price index, and 2.2 percent and 2.1 percent for the 
Consumer Price Index [CPI].
    CBO: In comparison, CBO forecasts GDP price index inflation 
of 1.6 percent in 2003 and 1.7 percent in 2004, and CPI 
inflation of 2.3 percent and 2.2 percent.
    Blue Chip: The Blue Chip Consensus forecasts GDP price 
index inflation of 1.6 percent and 1.8 percent in 2003 and 2004 
and CPI inflation of 2.3 percent and 2.3 percent.

Unemployment
    OMB: The administration projects unemployment rates of 5.7 
percent for calendar year 2003 and 5.5 percent for 2004.
    CBO: For 2003 and 2004 respectively, CBO projects an 
unemployment rate of 5.9 percent and 5.7 percent. In the medium 
term, CBO's projection for the unemployment rate is slightly 
higher than the administration's.
    Blue Chip: The Blue Chip projects an unemployment rate of 
5.9 percent for 2003 and 5.6 percent for 2004.


                                  TABLE 1.--COMPARISON OF ECONOMIC ASSUMPTIONS
                                           [Calendar years 2003-2008]
----------------------------------------------------------------------------------------------------------------
                                                              2003     2004     2005     2006     2007     2008
----------------------------------------------------------------------------------------------------------------
Real GDP (percentage change year over year):
    CBO...................................................     2.5      3.6      3.4      3.3      3.2      3.1
    OMB...................................................     2.9      3.6      3.5      3.3      3.2      3.1
    Blue Chip.............................................     2.6      3.6      3.4      3.3      3.1      3.1
GDP Price Index (percentage change year over year):
    CBO...................................................     1.6      1.7      2.0      2.1      2.1      2.2
    OMB...................................................     1.3      1.5      1.5      1.7      1.7      1.8
    Blue Chip.............................................     1.6      1.8      2.0      2.1      2.2      2.2
Consumer Price Index (percentage change year over year):
    CBO...................................................     2.3      2.2      2.4      2.5      2.5      2.5
    OMB...................................................     2.2      2.1      2.1      2.2      2.2      2.3
    Blue Chip.............................................     2.3      2.3      2.5      2.5      2.6      2.6
Unemployment Rate (percent, annual rate):
    CBO...................................................     5.9      5.7      5.4      5.3      5.2      5.2
    OMB...................................................     5.7      5.5      5.2      5.1      5.1      5.1
    Blue Chip.............................................     5.9      5.6      5.3      5.2      5.1      5.1
3-month Treasury Bill Rate (percent, annual rate):
    CBO...................................................     1.4      3.5      4.8      4.9      4.9      4.9
    OMB...................................................     1.6      3.3      4.0      4.2      4.2      4.3
    Blue Chip.............................................     1.4      2.8      4.1      4.4      4.5      4.6
10-year Treasury Note Rate (percent, annual rate):
    CBO...................................................     4.4      5.2      5.7      5.8      5.8      5.8
    OMB...................................................     4.2      5.0      5.3      5.4      5.5      5.6
    Blue Chip.............................................     4.2      5.1      5.6      5.8      5.8      5.8
----------------------------------------------------------------------------------------------------------------
Source: CBO, OMB, and Blue Chip Economic Indicators.

Interest rates
    OMB: OMB projects 3-month Treasury bill rates at 1.6 
percent in calendar year 2003 and 3.3 percent in 2004. Beyond 
2004, the administration projects lower interest rates than CBO 
and the Blue Chip Consensus; the administration's projections 
for the Treasury bill rates are 0.1 to 0.8 percentage point 
lower than the CBO's and the Blue Chip's. The administration's 
projection of the 10-year Treasury note rate is 4.2 percent for 
2003 and then steadily increasing to 5.6 percent in 2008.
    CBO: CBO forecasts 1.4 percent for 2003 for the Treasury 
bill rate, and 3.5 percent for 2004. CBO projects higher long-
term interest rates than OMB, with differences in the 0.2 to 
0.4 percentage point range.
    Blue Chip: For the 3-month Treasury bill, the Blue Chip 
forecasts 1.4 percent in 2003 and 2.8 percent in 2004. For 
2003-2004, the Blue Chip projections for long-term interest 
rates are very similar to those of OMB and CBO. Beyond 2004, 
the Blue Chip projections are nearly identical to CBO's, but 
above those of OMB.
    In conclusion, the budget resolution uses the CBO's 
economic assumptions presented in Table 2.

                                                 TABLE 2.--ECONOMIC ASSUMPTIONS OF THE BUDGET RESOLUTION
                                                               [Calendar years 2002-2013]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   2003    2004    2005    2006    2007    2008    2009    2010    2011    2012    2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
Real GDP (percentage change year over year):....................    2.5     3.6     3.4     3.3     3.2     3.1     3.0     2.9     2.6     2.5     2.7
GDP Price Index (percentage change year over year):.............    1.6     1.7     2.0     2.1     2.1     2.2     2.2     2.2     2.2     2.2     2.2
Consumer Price Index (percentage change year over year):........    2.3     2.2     2.4     2.5     2.5     2.5     2.5     2.5     2.5     2.5     2.5
Unemployment Rate (percent, annual rate):.......................    5.9     5.7     5.4     5.3     5.2     5.2     5.2     5.2     5.2     5.2     5.2
3-month Treasury Bill Rate (percent, annual rate):..............    1.4     3.5     4.8     4.9     4.9     4.9     4.9     4.9     4.9     4.9     4.9
10-year Treasury Note Rate (percent, annual rate):..............    4.4     5.2     5.7     5.8     5.8     5.8     5.8     5.8     5.8     5.8     5.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: CBO.



                           Homeland Security

                              ----------                              



                                       DEPARTMENT OF HOMELAND SECURITY \1\
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                   2003     2004     2005     2006     2007     2008   2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...........................     19.8     26.7     26.8     27.2     27.5     28.1      289.6
    Outlays....................................     21.9     26.0     27.0     27.4     28.0     27.7      286.1
Discretionary Spending:
    Budget Authority...........................     21.3     27.1     27.3     27.8     28.5     29.2      299.1
    Outlays....................................     23.7     26.7     27.6     28.0     28.8     28.6      296.0
Mandatory Spending:
    Budget Authority...........................     -1.5     -0.4     -0.5     -0.6     -1.0     -1.1       -9.6
    Outlays....................................     -1.8     -0.7     -0.5     -0.6     -0.8     -0.9       -9.9
----------------------------------------------------------------------------------------------------------------
\1\ These figures reflect spending through the Department of Homeland Security only. Some homeland security
  activities continue to be funded through other Departments and agencies.

Source: The Congressional Budget Office.

    The Department of Homeland Security [DHS] consolidates the 
activities of 22 Federal agencies, with funding from multiple 
budget functions. Fiscal year 2004 will be the Department's 
first full year. The Department's major activities are 
described below.
    The new agency was created by the Department of Homeland 
Security Act of 2002 (Public Law 107-296), which was enacted on 
25 November 2002. The intent is to provide improved management 
and coordination of homeland security activities in light of 
the ongoing threat of terrorist attacks. In most cases, the 
activities were to be moved to the DHS by 1 March 2003. The 
Department is expected to have approximately 180,000 employees.
    The budget resolution fully funds the President's request 
for homeland security. In the DHS, this includes activities of 
the Transportation Security Administration, the U.S. Coast 
Guard, the Bureau of Citizenship and Immigration Services, 
Border and Transportation Security, First Responder grants, 
health and medical activities, and Disaster Relief. The 
resolution assumes no across-the-board reductions in these 
areas.
    It should be noted various Government agencies will 
continue to carry on activities related to homeland security 
outside the DHS itself. The Budget Committee should establish a 
separate budget function for homeland security, to help assure 
proper oversight of, and attention to these activities in the 
budget process.
    A total of $1.0 billion is assumed for the Department of 
Homeland Security from programs and activities in Function 050. 
These include selected nonproliferation activities conducted by 
the Department of Energy (Function 053); Coast Guard operating 
expenses (Function 054); the National Bioweapons Defense 
Analysis Center (Department of Defense--Function 051); and the 
National Communications System (Department of Defense--Function 
051).
    The functions of the National Simulation and Analysis 
Center and the energy security and assurance programs of the 
Department of Energy (Function 270) are transferred to the new 
Department's Directorate of Information Analysis and 
Infrastructure Protection.
    The resolution assumes full funding for border inspection 
and other responsibilities transferred from USDA to the 
Department of Homeland Security. Under the Department of 
Homeland Security Act of 2002, several functions previously 
performed by the U.S. Department of Agriculture [USDA] will be 
transferred to DHS, including agricultural import and entry 
inspection activities from the Animal and Plant Health 
Inspection Service [APHIS]. By June 1, 2003, the Plum Island 
Animal Disease Center in New York will be transferred to DHS. 
The resolution assumes $228 million for such activities within 
the DHS' Border and Transportation Security Agency.
    A total of $21 million is provided for Department-wide 
technology investments as is $9 million for the Critical 
Infrastructure Assurance Office under Information Analysis and 
Infrastructure Protection (Function 370).
    The budget resolution recommends $4.8 billion in Function 
400 for the Transportation Security Administration, which will 
be part of the new Border and Transportation Security Agency in 
the Department of Homeland Security. An estimated $2.5 billion 
will be financed by offsetting collections from aviation 
passenger fees and airline security fees. The funds will be 
used to fund airport security screener and supervisory staff 
necessary to manage passenger and baggage screening; State and 
local law enforcement personnel for screening checkpoints; 
Federal air marshals; research and development of more 
effective and efficient screening technologies; and activities 
to improve flight deck safety. Funds are also to be used to 
improve security of other modes of transportation, including 
port security and mass transit. This is a $534 million 
reduction from the President's fiscal year 2003 request level 
(as amended), made possible by the completion of TSA rollout 
activities this year, the rightsizing of the screener 
workforce, and the absorption of some activities into other 
Department of Homeland Security offices.
    The resolution recommends $5.6 billion. This level supports 
the National Strategy for Homeland Security initiative to 
recapitalize Coast Guard assets.
    The resolution restores funding for disaster relief in 
Function 450 to a level consistent with historical trends. With 
the creation of the new Department of Homeland Security, FEMA 
has ceased to be an independent agency, and now is a part of 
the new Department. Disaster relief funding, formerly 
controlled by FEMA, now will be administered by the Department. 
The resolution includes $3.2 billion for disaster relief in 
fiscal year 2004, a level consistent with the average non-
terrorist event costs over the past 5 years. This includes $2 
billion in new money, together with funding remaining unspent 
from prior years. Funding also includes $300 million for a new 
pre-disaster hazard mitigation program, which will provide 
grants to State and local governments on a competitive basis. 
This program will replace an existing formula grant program 
that had been funded under the Disaster Relief Fund.
    The First Responder Grant program also in Function 450 is 
significantly expanded. The resolution provides $3.5 billion in 
funding for grants for ``first responders'' such as local 
firefighters, and search-and-rescue or police forces. This is a 
$1.7 billion increase over the 2003 enacted level. Funding will 
be administered by the Department of Homeland Security's Office 
of Emergency Preparedness.
    In Function 550 the resolution provides a reserve fund of 
$5.6 billion over 10 years for BioShield, a program to 
accelerate research, development, and purchase of bioterrorism 
threat countermeasures.
    Also within Function 550, the Department of Homeland 
Security [DHS] has responsibility for the Strategic National 
Stockpile, which was recently moved from the Department of 
Health and Human Services [HHS]. The stockpile contains drugs, 
vaccines, and other medical supplies and equipment that can be 
delivered to any place in the country within 12 hours of a 
request its future capacity. The resolution assumes $400 
million to maintain and strengthen the stockpile.
    In Function 750, DHS activities include specifically those 
responsible for securing the Nation's borders, enhancing 
Federal, State, and local law enforcement efforts, stopping 
terrorist financing, and bringing terrorist conspirators to 
justice.
    The resolution funds a new Bureau of Citizenship and 
Immigration Services [BCIS]. With the majority of BCIS funding 
provided through mandatory fees, $235 million is assumed for 
discretionary costs.
    The resolution assumes $1.3 billion for the Secret Service, 
a $105-million, or 9-percent, increase over fiscal year 2003 
enacted appropriations. Much of this increase is expected to go 
toward operations of an Executive Office of the President mail 
inspection facility, and for election-cycle security costs.
    The Border and Transportation Security Directorate [BTS], 
will merge existing border-related operations into two distinct 
operating agencies, and retain the Transportation Security 
Administration in its current structure. The resolution assumes 
$15.6 billion ($6 billion specific to Function 750) in fiscal 
year 2004 for BTS. Included in the BTS activities are:

 Border Activities. The resolution assumes $8.1 billion 
    for funding the bureaus responsible for enforcing the 
    Nation's customs and immigration laws. The resolution 
    further assumes $480 million for critical border protection 
    and integration efforts including the entry-exit system, 
    $313 million for the Automated Commercial Environment 
    [ACE], $150 for non-intrusive inspection technology, $62 
    million for the Container Security Initiative, and $18 
    million for the Customs-Trade Partnership Against 
    Terrorism.

 Bureau of Customs and Border Protection. This bureau 
    consists primarily of Border Patrol officers and inspectors 
    from Immigration and Naturalization Service [INS], Customs, 
    and Agricultural Quarantine and Inspection. The resolution 
    assumes $6.5 billion in funding for the bureau in fiscal 
    year 2004 (excluding $228 million from Function 350). 
    Consistent with the Homeland Security Act, the 30,000-
    person bureau will focus exclusively on security at and in-
    between ports-of-entry and will standardize the inspection 
    process and unify the chain of command between existing 
    operations.

 Bureau of Immigration and Customs Enforcement. This 
    agency consists of investigative and interior enforcement 
    personnel from the Customs Service, INS, and the Federal 
    Protective Service. The resolution assumes $2.8 billion for 
    the bureau in fiscal year 2004. The 19,000-person bureau 
    will focus on enforcement of immigration and customs laws 
    and will locate, detain and deport illegal immigrants, 
    track foreign students, and investigate smuggling and other 
    immigration and customs related criminal offenses.

 Federal Law Enforcement Training Center [FLETC]. The 
    resolution assumes $122 million for FLETC. Additionally, 
    FLETC will remain a distinct entity within the BTS 
    directorate.

 IAIP. The resolution assumes a sum of $46 million from 
    Function 750 will be used to support the $829 million 
    needed for the new Information Analysis and Infrastructure 
    Protection [IAIP], which will consolidate the incoming 
    agencies into an operationally cohesive unit but will 
    maintain the National Communications System as a distinct 
    entity.

 Overhead savings. The resolution assumes DHS 
    consolidation efforts will result in $30 million in savings 
    from administrative overhead, with the potential for 
    additional savings as the transition of the Department 
    proceeds.

 Departmental Management. The total request for DHS 
    Departmental Management is $540 million. Specific to 
    Function 750, the resolution assumes $125 million for 
    departmental management, $40 million for its 
    counterterrorism fund and $68 million for technology 
    investments.


                                Revenue

                              ----------                              



                                                     REVENUE
                                   [On-budget totals, in billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total..............................    1,323.7    1,350.1    1,519.3    1,662.7    1,793.1    1,902.7   19,479.1
----------------------------------------------------------------------------------------------------------------

                                Summary

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

                     Committee-Reported Resolution

    The budget resolution calls for $1.32 trillion in on-budget 
revenue to be collected in fiscal year 2003, $1.35 trillion to 
be collected in 2004, $8.23 trillion to be collected from 2004 
through 2008 and $19.48 trillion to be collected from 2004 
through 2013. This is estimated to result in $1.86 trillion in 
total revenue in fiscal year 2003, $1.91 trillion in 2004, 
$11.33 trillion over the next 5 years and $26.55 trillion over 
the next 10, when off-budget Social Security taxes are added.
    The resolution explicitly requires the Committee on Ways 
and Means to report legislation to the House floor by 11 April 
2003, making adjustments in current law to effect a reduction 
in revenue of $698.3 billion between 2003-2013. This 
``reconciles'' the President's Economic Growth Package under 
the reconciliation rules of the Budget Act. (A sum of $27.5 
billion in new mandatory spending authority is also reconciled 
to the Ways and Means Committee as budget outlays because of 
the refundable component of tax credits--such as the child tax 
credits--are treated as budget outlays by the budget score 
keeping convention).
    The resolution additionally adjusts, but does not 
reconcile, the revenue baseline down $602 billion in order to 
provide for permanent extension of the provisions of the 
Economic Growth and Tax Relief Reconciliation Act of 2001 that 
otherwise will expire in 2010.
    Finally, the budget accommodates, but does not reconcile, 
$49.6 billion in additional tax relief over the next 11 years. 
This additional tax relief policy will be determined by the 
Committee on Ways and Means, but could include incentives for 
charitable giving, health care, and energy production, 
conservation and reliability, as well as extending the research 
and experimentation tax credit and temporarily extending other 
currently expiring provisions. Tariff and other revenue effects 
of various trade initiatives are possible as well.
    The budget resolution sets the on-budget revenue level of 
the Federal Government for the next 11 years but it is the 
responsibility of the Committee on Ways and Means to make the 
specific adjustments in law to implement these levels.

                      THE CONTEXT OF TAX REDUCTION

    The average for Federal taxes over the past 40 years is 
about 18 percent of GDP, with a recent low of 17.5 percent in 
1992 (at the beginning of the 1990s economic expansion) and a 
high of 20.8 percent in 2000 (at the beginning of the recent 
economic recession). In fiscal year 2003, Federal taxes are 
expected to be 17.6 percent of GDP. Under current law, taxes as 
a percent of GDP next year will increase to 17.9 percent, the 
year after that to 18.5 percent, and over the next 10 years to 
20.6 percent--back to record high levels. Economic growth will 
be hindered under this growing tax burden as a share of the 
economy. Even with the additional tax relief in this budget 
resolution, the tax burden on Americans will stay well over the 
17.9 percent of GDP post-World War II average.

                         TAX RELIEF PRINCIPLES

    As noted previously, growth plans such as the President's 
would provide significant benefits. Reducing income tax rates 
would generate strong incentives for sustained growth--
especially when they are permanent reductions. Eliminating the 
double taxation of corporate earnings would promote investment 
by reducing the cost of capital and improving efficiency; it 
would also promote gains in the stock market. Married couples 
would benefit from the reduction in the marriage penalty, and 
families from the increase in child credits.
    In these and other ways, a carefully designed plan similar 
to the President's could yield economic benefits for years to 
come.

                        Major Policy Assumptions

                       NEW JOBS AND STRONG GROWTH

    The economic growth plan assumed and reconciled in this 
budget resolution--with a budget impact of $449 billion over 
the next 6 years, and $729 billion over 11 years--is mainly 
oriented toward personal income tax reductions. The specific 
elements of President Bush's Economic Growth Package could be 
included in the reconciliation act, as well as additional and/
or alternative congressional growth proposals. Growth policies 
that could be incorporated include:

 Immediate expansion of the 10-percent individual 
    income tax bracket: The expansion of the 10-percent bracket 
    scheduled for 2008 can be accelerated to 2003, and indexed 
    for inflation beginning in 2004. The endpoint of the 10-
    percent tax bracket would increase from $12,000 of taxable 
    income to $14,000 for married couples and from $6,000 to 
    $7,000 for single taxpayers. This expansion immediately 
    benefits married taxpayers with taxable income of $12,000 
    and above, and single taxpayers with taxable income of 
    $6,000 and above.

 Accelerated reduction of individual income tax rates: 
    The reduction in income tax rates in excess of 15 percent, 
    scheduled for 2004 and 2006, can also be moved up to 2003, 
    immediately resulting in new rates of 25 percent (instead 
    of 27 percent), 28 percent (instead of 30 percent), 33 
    percent (instead of 35 percent), and 35 percent (instead of 
    38.6 percent). These reductions immediately benefit married 
    couples with taxable income of $47,450 and above, and 
    single taxpayers with taxable income of $28,400 and above.

 Faster marriage tax justice: Marriage penalty relief 
    can be accelerated. This would involve an increase in the 
    standard deduction for married couples to double the amount 
    of the standard deduction for single taxpayers in 2003. The 
    ``width'' of the 15 percent tax bracket for married couples 
    would be increased to twice the ``width'' for single 
    taxpayers in 2003. These provisions are currently scheduled 
    to phase in over the period between 2005 and 2009. These 
    reductions immediately benefit married couples who claim 
    the standard deduction, or who have taxable income of 
    $47,450 and above.

 Planned increase of the child tax credit immediately: 
    The amount of the child tax credit can be increased to 
    $1,000 in 2003 (from $600), accelerating a scheduled phase-
    in between 2005 and 2010. In 2003, the increased amount of 
    the child tax credit could be paid in advance beginning in 
    July 2003 on the basis of information on the taxpayer's 
    2002 tax return filed in 2003. Advanced payments could be 
    made in a manner similar to the advance payment checks that 
    were issued in 2001 to reflect the new 10-percent tax 
    bracket. $27.5 billion in outlays is reconciled to the Ways 
    and Means Committee to make possible the acceleration of 
    the refundable component of this provision as well.

 Individual relief from the Alternative Minimum Tax: To 
    ensure that the benefits from the acceleration of the tax 
    reductions for individual taxpayers proposed by the 
    President are not reduced by the Alternative Minimum Tax 
    [AMT], it is possible to increase the AMT exemption amount 
    by $8,000 for married taxpayers, and by $4,000 for single 
    taxpayers in 2003 through 2005.

 Bigger small business incentive for new investment: 
    The amount of investment that may be immediately deducted 
    by small businesses can be increased from $25,000 to 
    $75,000 beginning in 2003. The amount of investment 
    qualifying for this immediate deduction would not begin to 
    phase out for small businesses until their investments 
    exceed $325,000 (increased from $200,000). Both parameters 
    could be indexed for inflation beginning in 2004.

 Ending Double taxation of corporate earnings: 
    Dividends paid by corporations to individuals could be 
    excluded in whole or in part from taxable income when paid 
    out of previously taxed corporate income. This provision 
    would attack the inherently unfair double taxation of 
    dividends by the Federal Government. It also would 
    encourage corporate reform by providing an incentive for 
    increased accountability of companies to their 
    shareholders. This would come about because of the more 
    favorable condition for capital formation through income-
    earning stocks rather than pure debt and retained-earning 
    equity. Dividends can provide evidence of a corporation's 
    underlying financial health and enable investors to more 
    readily evaluate a corporation's financial condition. 
    Dividends paid by corporations in excess of previously 
    taxed corporate income would still be included in taxable 
    income.

                    PRIOR TAX CUTS BECOME PERMANENT

    The budget resolution allows for the permanent extension 
of: marginal individual income tax rate reductions expiring in 
2010; the child tax credit expiring in 2010 ($22 billion in 
outlays also provided for the refundable component); marriage 
penalty relief expiring in 2010; education incentives expiring 
in 2010; repeal of estate and generation-skipping transfer 
taxes and modification of gift taxes expiring in 2010; 
modifications of individual retirement accounts and pension 
plans expiring in 2010; and other incentives for families and 
children expiring in 2010.

                    OTHER POSSIBLE REVENUE PROPOSALS

    The resolution provides about $50 billion in additional tax 
relief. The particular mix of tax policies this amount can 
entail will be determined by the Committee on Ways and Means, 
but could include:

 Charitable giving: Deductions for non-itemizers and 
    tax-free withdrawals from IRA accounts.

 Education: Tax credit for school costs of students who 
    choose to leave failing public schools and deductions for 
    teachers' out-of-pocket classroom expenses.

 Health Care: Tax credit for the purchase of health 
    insurance, an above-the-line deduction for long-term care 
    insurance premiums, permanent extension and reform of 
    Archer Medical Savings Accounts; and an additional personal 
    exemption to home caretakers of family members.

 Savings: Individual Development Accounts [IDAs].

 Environment: Extension of expensing brownfields 
    remediation costs and excluding 50 percent of gains from 
    the sale of property for conservation purposes.

 Energy: Tax credits for producing electricity from 
    renewable sources, using residential solar energy systems, 
    the purchase of certain hybrid and fuel cell vehicles, 
    energy produced from landfill gas and combined heat and 
    power property, and an excise tax exemption for ethanol.

 Trade: Free trade agreements with Chile and Singapore.

 R&D Tax Credit: The research and experimentation tax 
    credit expires on June 30, 2004.

 Temporary ``Extenders'': These expiring provisions 
    include minimum tax relief for individuals, allowing full 
    deductiability of net operating losses under AMT, combined 
    work opportunity/welfare-to-work tax credit, deduction for 
    corporate donations of computer technology, Washington, DC 
    tax incentives, and authority to issue Qualified Zone 
    Academy Bonds.


                   Function-by-Function Presentation

                              ----------                              


050 National Defense

100 Homeland Security

150 International Affairs

250 Science, Space and Technology

270 Energy

300 Natural Resources and Environment

350 Agriculture

370 Commerce and Housing Credit

400 Transportation

450 Community and Regional Development

500 Education, Training, Employment and Social Services

550 Health

570 Medicare

600 Income Security

650 Social Security

700 Veterans Benefits

750 Administration of Justice

800 General Government

900 Net Interest

920 Allowances

950 Undistributed Offsetting Receipts

                     FUNCTION 050: NATIONAL DEFENSE

                              ----------                              



                                         FUNCTION 050: NATIONAL DEFENSE
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............      392.5      400.6      420.1      440.2      460.4      480.9    4,814.0
    Outlays........................      386.2      400.9      414.2      426.0      438.7      462.9    4,704.4
Discretionary Spending:
    Budget Authority...............      392.1      400.1      419.4      439.5      459.7      480.1    4,806.5
    Outlays........................      386.4      400.6      413.7      425.4      438.0      462.2    4,697.6
Mandatory Spending:
    Budget Authority...............        0.4        0.5        0.6        0.7        0.7        0.8        7.4
    Outlays........................       -0.1        0.4        0.6        0.6        0.7        0.7        6.8
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    The funding levels in the resolution for Function 050 
reflect the Nation's urgent requirement to defeat terrorism 
overseas and improve homeland security, while providing 
continued investment in the transformation of the armed forces. 
The terrorist attacks of 11 September 2001 underscore the 
necessity for a revitalized military capable of winning 
decisively against conventional and unconventional threats to 
the security of the United States.
    The National Defense function includes funds to develop, 
maintain, and equip the military forces of the United States. 
More than 95 percent of the funding in this function goes to 
Department of Defense [DOD] military activities, including 
funds for ballistic missile defense. The function also includes 
pay and benefits for military and civilian personnel; research, 
development, testing, and evaluation; procurement of weapon 
systems; military construction and family housing; and 
operations and maintenance of the defense establishment. The 
remaining funding in the function is applied to atomic energy 
defense activities of the Department of Energy, and other 
defense-related activities.
    In the period of fiscal years 1998-2003, BA in Function 050 
has increased at an average annual rate of 7.7 percent--from 
$271.3 billion to $392.5 billion.

                Summary of Committee-Reported Resolution

    The resolution calls for $400.6 billion in BA and $400.9 
billion in outlays in fiscal year 2004, an increase of 2.0 
percent in BA compared with fiscal year 2003. The function 
totals are $2,202.1 billion in BA and $2,142.7 billion in 
outlays over 5 years; and $4,814.0 billion in BA and $4,704.4 
billion in outlays over 10 years.
    For fiscal year 2004 discretionary spending, the resolution 
provides $400.1 billion in BA and $400.6 billion in outlays. 
This is an increase of $8.0 billion in BA and $14.2 billion in 
outlays over fiscal year 2003. The resolution calls for 
$2,198.9 billion in BA and $2,139.8 billion in outlays over 5 
years, and $4,806.6 billion in BA and $4,697.6 billion in 
outlays over 10 years.
    Mandatory spending in this function is $0.5 billion in BA 
and $0.4 billion in outlays in fiscal year 2004; $3.3 billion 
in BA and $2.9 billion in outlays over 5 years; and $7.4 
billion in BA and $6.8 billion in outlays over 10 years. Over 
the 2004-2008 period, mandatory spending grows by $0.3 billion; 
and over the 2004-2013 period by $0.5 billion.

             NATIONAL DEFENSE AND THE WAR AGAINST TERRORISM

    The BA and outlay funding levels for National Defense will 
support critical military and homeland security initiatives, 
consistent with the President's recommendations. The Department 
of Defense would not be subject to the 1-percent reduction 
applied to programs in most other areas.

Discretionary spending

    The resolution assumes $98.6 billion for pay and benefits, 
an increase of 5.6 percent. It funds a range of military pay 
increases from 2.0 percent up to 6.5 percent, targeted by rank 
and years of service. This initiative is intended to retain 
DOD's most experienced personnel. The average military pay 
raise for fiscal year 2004 is 4.1 percent. The resolution also 
assumes the reduction of out-of-pocket housing costs from 7.5 
percent to 3.5 percent for personnel living in private housing. 
These costs are schedule to drop to zero in fiscal year 2005.
    The resolution allows for $117.0 billion for operations and 
maintenance in fiscal year 2004, an increase of $3.4 billion 
over the previous year. Operations and maintenance contains 
funding for training and education, operations, and support of 
the military forces; maintenance of fielded weapon systems and 
equipment; and operation and maintenance of facilities. It also 
includes funding of pay for DOD civilian personnel.
    For military procurement, the resolution recommends $72.7 
billion. This is the highest funding level for this activity 
since fiscal year 1990. Procurement contains funding for the 
purchase and initial fielding of weapon systems, aircraft, 
ships, vehicles, ammunition, and other combat-related systems.
    The resolution accommodates $61.8 billion for research, 
development, test, and evaluation--the seed money for the next 
generation of weapons. This represents a $5.0-billion increase 
over the current year's appropriated level. This level is the 
highest in DOD's history.
    The resolution assumes $6.7 billion that the Office of 
Management and Budget classifies as Homeland Security-related 
spending within DOD. This funding provides for initiatives to 
include intrusion detection, blast mitigation, chemical and 
biological detection, personal protection gear, harbor patrol, 
and measures to restrict base access.
    The resolution is consistent with the President's request 
for $9.1 billion for the Missile Defense Agency, a $1.5-billion 
increase over the previous year. The program will focus on 
fielding an initial capability in 2004 and 2005; this program 
would provide a modest near-term defense against North Korean 
missiles.
    The resolution accommodates full funding of health benefits 
for active duty members, retirees, and their dependents, 
including the expansion of military health care mandated by the 
Fiscal Year 2001 Defense Authorization Act. It assumes a total 
of $27.2 billion in expenditures for health care, including 
$16.2 billion to support the direct health care system, and 
$10.8 billion for contract care (some of these expenditures 
take place outside Function 050).
    The Special Forces that play a crucial role in the war 
against terrorism are assumed to be funded at $4.52 billion, 
consistent with the President's request. This represents a 47-
percent increase over the current year funding level.

Mandatory spending

    The resolution assumes $70 million in mandatory BA to 
permit proceeds from facilities that were acquired, 
constructed, or improved with commissary surcharges or 
nonappropriated funds, and that were closed under Base 
Realignment and Closure authority, to be reapplied to 
nonappropriated fund activities without an appropriation.

                    DEPARTMENT OF HOMELAND SECURITY

    A portion of funding in this function goes toward 
activities of the new Department of Homeland Security. Please 
see the separate section on the Department in this report.
                  FUNCTION 150: INTERNATIONAL AFFAIRS

                              ----------                              



                                       FUNCTION 150: INTERNATIONAL AFFAIRS
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       22.5       24.7       28.6       31.1       32.3       33.1      326.4
    Outlays........................       19.3       23.7       24.1       25.6       27.4       28.4      284.5
Discretionary Spending:
    Budget Authority...............       25.4       27.8       29.1       30.6       31.8       32.8      328.2
    Outlays........................       26.0       26.4       26.9       28.5       30.3       31.2      313.5
Mandatory Spending:
    Budget Authority...............       -2.9       -3.1       -0.5        0.5        0.4        0.3       -1.7
    Outlays........................       -6.7       -2.7       -2.8       -2.8       -2.9       -2.8      -29.0
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    As part of the global war on terrorism, the Department of 
State and international assistance programs play a vital role 
in maintaining and expanding support of the international 
coalition against terrorism. Funds distributed through the 
International Affairs function provide for international 
development and humanitarian assistance; international security 
assistance; the conduct of foreign affairs; foreign information 
and exchange activities; and international financial programs. 
The major departments and agencies in this function include the 
Department of State, the Department of the Treasury, and the 
United States Agency for International Development [USAID].
    Spending in Function 150 grew from $14.8 billion in BA in 
fiscal year 1998 to $22.5 billion in BA in fiscal year 2003. BA 
for International Affairs is 1.0 percent of total Federal BA, 
and above the recent historical low of 0.9 percent in 1998. 
International Affairs BA was about 1.2 percent of the Federal 
budget in 1983, and 2.2 percent in 1993.

                Summary of Committee-Reported Resolution

    The budget resolution calls for $24.7 billion in BA and 
$23.7 billion in outlays in fiscal year 2004, an increase of 
9.8 percent in BA compared with fiscal year 2003. The function 
totals are $149.8 billion in BA and $129.2 billion in outlays 
over 5 years, and $326.4 billion in BA and $284.5 billion in 
outlays over 10 years.
    For fiscal year 2004 discretionary spending, the resolution 
calls for $27.8 billion in BA and $26.4 billion in outlays. 
This is an increase of $2.4 billion in BA and $376 million in 
outlays over fiscal year 2003. The resolution calls for $152.2 
billion in BA and $143.2 billion in outlays over 5 years, and 
$328.2 billion in BA and $313.5 billion in outlays over 10 
years.
    Mandatory spending in this function is -$3.1 billion in BA 
and -$2.7 billion in outlays in fiscal year 2004; and -$2.4 
billion in BA and -$14.0 billion in outlays over 5 years; and 
-$1.7 billion in BA and -$29.0 billion in outlays over 10 
years.

Discretionary spending

    The Department of State and international assistance 
programs play a vital role in maintaining and expanding support 
of the international coalition against terrorism. The budget 
resolution recommends the President's request of $4.7 billion 
to help win the global war against terrorism and alleviate 
conditions that can promote it.
    The resolution allows for $463 million for the Andean 
Counter-drug Initiative to support the Colombian government's 
campaign against terrorists and the drug trade that fuels their 
activities. It also recommends the President's proposal to 
create a new Government corporation (the Millennium Challenge 
Corporation) to administer a $1.3 billion fund designed to 
promote just governance and sound free-market economic policies 
in International Development Association-eligible countries 
(with per capita incomes below $1,435 per annum).
    The budget resolution allows for $2 billion as the first 
installment of the President's Emergency Plan for AIDS Relief, 
a 5-year, $15-billion initiative to turn the tide in the global 
effort to combat the HIV/AIDS pandemic. This initiative--funded 
through USAID, the Department of Health and Human Services, and 
the Centers for Disease Control--virtually triples U.S. funding 
to fight the international AIDS pandemic, including:

 A sum of $450 million for the Global AIDS Initiative 
    to help the most afflicted countries in Africa and the 
    Caribbean.

 A total of $200 million for the Global Fund to Fight 
    AIDS, Tuberculosis, and Malaria ($100 million in USAID and 
    $100 million in HHS), raising the total U.S. pledge to $700 
    million, or 29 percent of total pledges.

 A sum of $100 million for the International Mother and 
    Child HIV Prevention Initiative for a total funding level 
    of $300 million ($150 million in USAID and $150 million in 
    HHS funds).

    The resolution assumes funds sufficient for the President's 
proposal to create a new government corporation--the Millennium 
Challenge Corporation--to administer a $1.3-billion fund 
designed to promote just governance and sound free-market 
economic policies in International Development Association-
eligible countries (with yearly per-capita incomes below 
$1,435).
    The budget resolution recommends $200 million for the 
President's proposal to create a new fund with flexible 
authority to provide emergency food aid and grants.
    The resolution also recommends an additional $75 million 
for the Trust Fund for Heavily Indebted Poor Countries [HIPC], 
and $20 million for the Treasury Debt Restructuring account for 
debt reduction under the Tropical Forest Conservation Act.

Mandatory spending

    The resolution makes no specific mandatory assumptions.

    These items are recommended for priority consideration in 
this function, within the overall framework of the across-the-
board percentage reduction assumed in the resolution. 
Notwithstanding the recommended level for Function 250, the 
budget resolution provides a lump sum for discretionary 
spending to the Appropriations Committee, which makes 
allocations to its subcommittees based on its priorities. 
Therefore, the aggregate funding levels in this function may 
increase or decrease depending on how committees determine the 
savings.
          FUNCTION 250: GENERAL SCIENCE, SPACE, AND TECHNOLOGY

                              ----------                              



                              FUNCTION 250: GENERAL SCIENCE, SPACE, AND TECHNOLOGY
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       23.1       22.8       23.6       24.3       25.1       25.9      260.8
    Outlays........................       21.6       22.3       23.1       23.7       24.4       25.1      254.1
Discretionary Spending:
    Budget Authority...............       23.0       22.7       23.6       24.3       25.1       25.9      260.5
    Outlays........................       21.5       22.3       23.0       23.6       24.4       25.1      253.6
Mandatory Spending:
    Budget Authority...............        0.1        0.0        0.0        0.0        0.0        0.0        0.3
    Outlays........................        0.1        0.1        0.1        0.1        0.0        0.0        0.5
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    Function 250 consists of General Science, Space and 
Technology programs. The largest component of this function--
about two-thirds of total spending--is for the space flight, 
research, and supporting activities of the National Aeronautics 
and Space Administration [NASA]. The function also reflects 
general science funding, including the budgets for the National 
Science Foundation [NSF], and the fundamental science programs 
of the Department of Energy [DOE].
    The average growth rate over the last 5 years (1998-2003) 
was 5.2 percent. BA for Function 250 has grown from $18.0 
billion in 1998 to $23.2 billion for fiscal year 2003.

                Summary of Committee-Reported Resolution

    The resolution calls for approximately $22.8 billion in BA 
and $22.3 billion in outlays in fiscal year 2004, a decrease of 
1.6 percent in BA compared with fiscal year 2003. The function 
totals are $121.8 billion in BA and $118.7 billion in outlays 
over 5 years; and $260.8 billion in BA and $254.1 billion in 
outlays over 10 years.
    For fiscal year 2004 discretionary spending, the resolution 
provides for $22.7 billion in BA and $22.3 billion in outlays. 
The resolution calls for $121.6 billion in BA and $118.3 
billion in outlays over 5 years, and $260.5 billion in BA and 
$253.6 billion in outlays over 10 years.
    Mandatory spending in this function is $30 million in BA 
and $97 million in outlays in fiscal year 2004; and $153 
million in BA and $329 million in outlays over 5 years; and 
$317 million in BA and $488 million in outlays over 10 years.

Discretionary spending

    The resolution provides for $5.5 billion for NSF, a $200 
million, or 3.8-percent increase from the fiscal year 2003 
level enacted. The resolution includes $4.1 billion for 
research and related activities. Of this total, $1.1 billion 
represents 40 percent of the Federal funding for university-
based research in math and physical sciences. The budget also 
recommends $938 million to support education and research in 
all science, technology engineering, and mathematics 
disciplines. The research equipment and facilities construction 
part of NSF's budget would receive $202 million, a 60.2-percent 
increase over 2003.
    Regarding NASA, the budget resolution is consistent with 
the agency's strategic plan. Until further investigation of the 
Colombia incident, the resolution considers it premature to add 
additional funds for a space shuttle replacement.
    The resolution provides for $14.5 billion for NASA in 
Function 250. Another $978 million for NASA science, 
aeronautics, and technology is included in Function 400 
(Transportation), bringing NASA's total to $15.5 billion, $469 
million or a 3.1-percent increase over fiscal year 2003. 
Starting with fiscal year 2004, NASA programs include the full 
cost of civil servant salaries and other costs previously 
included in other accounts in the NASA budget. Because of this 
accounting change, it is impossible to be precise about how 
these full costs would have been distributed in previous years' 
budgets. This level of funding in the resolution is consistent 
with NASA's request prior to the Columbia incident.

Mandatory spending

    The resolution makes no specific mandatory spending 
assumptions in this function.

    These items are recommended for priority consideration in 
this function, within the overall framework of the across-the-
board percentage reduction assumed in the budget resolution. 
Notwithstanding the recommended level for Function 250, the 
budget resolution provides a lump sum for discretionary 
spending to the Appropriations Committee, which makes 
allocations to its subcommittees based on its priorities. 
Therefore, the aggregate funding levels in this function may 
increase or decrease depending on how committees determine the 
savings.
                          FUNCTION 270: ENERGY

                              ----------                              



                                              FUNCTION 270: ENERGY
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............        2.1        2.6        2.7        2.6        2.4        3.0       29.3
    Outlays........................        0.4        0.9        1.0        1.2        1.0        1.4       15.6
Discretionary Spending:
    Budget Authority...............        3.2        3.6        3.9        3.8        3.8        4.7       45.3
    Outlays........................        3.2        3.6        3.9        3.9        3.8        4.6       45.0
Mandatory Spending:
    Budget Authority...............       -1.2       -1.0       -1.2       -1.2       -1.4       -1.8      -16.1
    Outlays........................       -2.7       -2.7       -2.9       -2.7       -2.8       -3.2      -29.4
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    The Energy function reflects civilian energy and 
environmental activities and programs of the Federal 
Government. Through this function, spending is provided for 
energy supply programs, such as solar and renewable, fossil and 
nuclear research at the Department of Energy [DOE]; rural 
electricity and telecommunications loans, administered through 
the Rural Utilities Service of the Department of Agriculture; 
electric power generation and transmission programs of the 
Power Marketing Administrations (the Southeastern Power 
Administration, the Southwestern Power Administration, the 
Western Area Power Administration, and the Bonneville Power 
Administration); and power generation and transmission programs 
of the Tennessee Valley Authority [TVA]. This function also 
provides funds for energy conservation programs; emergency 
energy preparedness (mainly the Strategic Petroleum Reserve); 
and energy information, policy, and regulation programs, 
including spending by the Office of the Secretary of Energy and 
the operations of the Federal Energy Regulatory Commission, the 
Nuclear Regulatory Commission [NRC] and the U.S. Enrichment 
Corporation
    Function 270 does not include DOE's national security 
activities--the National Nuclear Security Administration--which 
are in Function 050 (Defense), or its basic research and 
science activities, which are in Function 250 (General Science, 
Space, and Technology).
    The average annual funding increase in BA over the past 5 
years (1998-2003) is 47.6 percent, for which mandatory charged 
receipts (negative spending) are mostly responsible. 
Discretionary funding is up 1 percent a year during this 
period. Receipts, repayments, and electricity sales result in 
negative mandatory BA and outlays.

                Summary of Committee-Reported Resolution

    The resolution calls for $2.6 billion in BA and $0.9 
billion in outlays in fiscal year 2004, an increase of 25 
percent in BA compared with fiscal year 2003. The function 
totals are $13.3 billion in BA and $5.6 billion in outlays over 
5 years, and $29.3 billion in BA and $15.6 billion in outlays 
over 10 years.
    For fiscal year 2004 discretionary spending, the resolution 
calls for $3.6 billion in BA and outlays. This is an increase 
of approximately $0.4 billion in BA and $0.5 billion in outlays 
over fiscal year 2003.
    Mandatory spending in this function is -$1.0 billion in BA 
and -$2.7 billion in outlays in fiscal year 2004; -$6.6 billion 
in BA and -$14.2 billion in outlays over 5 years, and -$16.1 
billion in BA and -$29.4 billion in outlays over 10 years. Over 
the 2004-2008 period, mandatory spending declines by -$0.6 
billion due to increasing offsetting receipts from various loan 
repayments and liquidations, electricity sales, and fees.

                    DEPARTMENT OF HOMELAND SECURITY

    A portion of funding in this function goes toward 
activities of the new Department of Homeland Security. Please 
see the separate section on the Department in this report.

                            OTHER PRIORITIES

Discretionary spending

    The resolution also protects the homeland outside the new 
Department of Homeland Security. A sum of $619 million is 
assumed in fiscal year 2004 for the Nuclear Regulatory 
Commission to continue to review and strengthen NRC's physical 
facilities and information technology infrastructure to enhance 
nuclear plant security. $546 million of this amount is provided 
by fees and receipts.
    The resolution can accommodate the President's 
discretionary proposals, which fulfill the National Energy 
Policy recommendations to focus Federal investment on future 
energy solutions. For discretionary spending, the resolution 
actually provides a 12-percent increase from $3.2 billion in 
fiscal year 2003 to $3.6 billion in fiscal year 2004, and a 47-
percent increase over the next 5 years. This would support new 
energy research initiatives on hydrogen, nuclear and coal, as 
well as additional low-income weatherization and conservation 
assistance.

Mandatory spending

    The small aggregate totals in Function 270 come about 
because the mandatory spending component is negative. Negative 
spending on the mandatory side of $2.7 billion in 2004, the 
same as 2003, is due to rural electrification and 
telecommunications loan repayments and liquidations, Tennessee 
Valley Authority and Power Marketing Administration electricity 
sales, nuclear waste disposal fees, and uranium sales and 
enrichment fees.

    These items are recommended for priority consideration in 
this function, within the overall framework of the across-the-
board percentage reduction assumed in the budget resolution. 
Notwithstanding the recommended level for this function, the 
budget resolution provides a lump sum for discretionary 
spending to the Appropriations Committee, which makes 
allocations to its subcommittees based on its priorities. 
Therefore, the aggregate funding levels in this function may 
increase or decrease depending on how committees determine the 
savings.
            FUNCTION 300: NATURAL RESOURCES AND ENVIRONMENT

                              ----------                              



                                 FUNCTION 300: NATURAL RESOURCES AND ENVIRONMENT
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       30.8       29.2       30.3       30.9       31.4       32.2      331.0
    Outlays........................       28.9       29.9       30.3       31.2       31.3       31.7      327.9
Discretionary Spending:
    Budget Authority...............       29.2       27.0       27.6       28.2       28.8       29.6      303.1
    Outlays........................       27.9       28.2       28.2       28.4       28.8       29.3      302.0
Mandatory Spending:
    Budget Authority...............        1.6        2.2        2.7        2.8        2.7        2.6       27.8
    Outlays........................        1.1        1.7        2.1        2.8        2.6        2.4       25.9
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    Programs within Function 300 consist of water resources, 
conservation, land management, pollution control and abatement, 
and recreational resources. Major departments and agencies in 
this function are the Department of Interior, including the 
National Park Service [NPS], the Bureau of Land Management 
[BLM], the Bureau of Reclamation, and the Fish and Wildlife 
Service [FWS]; conservation-oriented and land management 
agencies within the Department of Agriculture [USDA] including 
the Forest Service; the National Oceanic and Atmospheric 
Administration [NOAA] in the Department of Commerce; the Army 
Corps of Engineers; and the Environmental Protection Agency 
[EPA].
    Over the past 5 years, funding for Function 300 has grown 
by an average annual rate of 4.8 percent.

                Summary of Committee-Reported Resolution

    The resolution calls for $29.2 billion in BA and $29.9 
billion in outlays in fiscal year 2004. The function totals are 
$154.1 billion in BA and $154.4 billion in outlays over 5 
years, and $331.0 billion in BA and $327.9 billion in outlays 
over 10 years.
    For fiscal year 2004 discretionary spending, the resolution 
calls for $27.0 billion in BA and $28.2 billion in outlays. The 
resolution calls for $141.2 billion in BA and $142.9 billion in 
outlays over 5 years, and $303.1 billion in BA and $302.0 
billion in outlays over 10 years.
    Mandatory spending in this function is $2.2 billion in BA 
and $1.7 billion in outlays in fiscal year 2004. This spending 
would be $12.9 billion in BA and $11.5 billion in outlays over 
5 years, and $27.8 billion in BA and $25.9 billion in outlays 
over 10 years.
    The following recommendations are assumed, or can be 
accommodated, by the resolution.

Discretionary spending

 A sum of $706 million in funds for reducing the 
    National Park Service's $5-billion backlog in operations 
    and maintenance. After nearly doubling the account in last 
    year's resolution, the resolution increases funds by $45 
    million, or 7 percent.

 Full funding for the Land and Water Conservation Fund 
    [LWCF] at $901 million. This funding, which comes from 
    receipts for oil and gas drilling primarily from the Outer 
    Continental Shelf, is used by Federal and State governments 
    for local conservation projects, natural resource 
    protection, and outdoor recreation.

 Full funding for the Cooperative Conservation 
    Initiative. The resolution allows $113 million in matching 
    funds for the NPS, FWS, BLM, and other land management 
    agencies to partner with adjacent landowners and other 
    private citizens on resource conservation projects.

 A total of $1.4 billion for the Superfund program, a 
    9-percent, or $117-million, increase over the 2003 level. 
    This funding level will enable 10 to 20 new construction 
    starts in 2004, and a similar increase in the number of 
    completions by 2006.

 A $17-million increase for NOAA's portion of the 
    multiagency Climate Change Research Initiative [CCRI]. The 
    CCRI will advance climate modeling capabilities and 
    climate-observation systems.

 A sum of $1.2 billion within EPA's budget for 
    scientific research into environmental threats to 
    children's health: and $5 million for the STAR Fellowship 
    program to help attract the Nation's best scientists to 
    EPA.

 Funding for the Forest Service's Hazardous Fuels 
    Treatments Program of $230 million. This program removes 
    the amount of brush and small trees that exacerbate the 
    risk of catastrophic fire which led to the second worst 
    fire season in 50 years last year destroying 7 million 
    acres and killing 21 firefighters. Funding will be focused 
    on activities that protect human life by dedicating 70 
    percent to the wildland-urban interface. The $230-million 
    level represents a 90-percent increase over the past 3 
    years.

 A sum of $123 million to support the EPA's homeland 
    security responsibilities. The resolution allows the agency 
    to continue protecting the Nation's critical water 
    infrastructure while upgrading and improving emergency 
    response capabilities.

Mandatory spending

 The Central Utah Project Completion Act [CUP], which 
    clarifies and streamlines completion of project goals. The 
    CUP provides water for agricultural, industrial, and 
    municipal uses.

 Permanent extension of the Recreation Fee Program 
    which allows parks, refuges, forests, and other publicly 
    owned units to spend fees within the units from which they 
    are collected. This proposal is another tool for reducing 
    the multibillion dollar backlog in our existing publicly 
    owned parks, forests, and refuges.

 Legislation to prevent the United Mine Workers of 
    America Combined Benefit Fund from financial crisis by 
    transferring to it any additional interest from the 
    Abandoned Mine Land Reclamation Fund.

 Legislation allowing the Bureau of Land Management to 
    use updated management plans to identify publicly owned 
    areas suitable for sale. Using management plans with the 
    most up-to-date scientific information will allow the BLM 
    to keep the most environmentally sensitive holdings under 
    Federal protection. The proposal also allows a portion of 
    the receipts from sales to be used for restoration projects

 The Water Resources Development Act of 2002, which 
    authorizes the Corps of Engineers to conduct water resource 
    studies and undertake specified projects and programs for 
    flood control, inland navigation, shoreline protection, and 
    environmental restoration.

    These items are recommended for priority consideration in 
this function, within the overall framework of the across-the-
board percentage reduction assumed in the budget resolution. 
Notwithstanding the recommended level for Function 300, the 
budget resolution provides a lump sum for discretionary 
spending to the Appropriations Committee, which makes 
allocations to its subcommittees based on its priorities. 
Therefore, the aggregate funding levels in this function may 
increase or decrease depending on how committees determine the 
savings.
                       FUNCTION 350: AGRICULTURE

                              ----------                              



                                            FUNCTION 350: AGRICULTURE
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       24.4       24.0       26.1       25.8       25.1       24.0      240.8
    Outlays........................       23.4       23.4       25.2       25.0       24.4       23.5      237.1
Discretionary Spending:
    Budget Authority...............        5.8        5.1        5.5        5.6        5.7        5.8       59.5
    Outlays........................        5.9        5.5        5.3        5.5        5.6        5.8       59.2
Mandatory Spending:
    Budget Authority...............       18.7       18.9       20.7       20.2       19.4       18.2      181.3
    Outlays........................       17.5       17.8       19.9       19.5       18.8       17.7      177.9
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    The Agriculture function includes funds for direct 
assistance and loans to food and fiber producers, export 
assistance, market information, inspection services, and 
agricultural research. Farm policy is driven by the Farm 
Security and Rural Investment Act of 2002, which provides 
producers with continued planting flexibility while protecting 
them against unique uncertainties such as poor weather 
conditions and unfavorable market conditions.
    Over the past 5 years, funding for Function 350 has grown 
by an average annual rate of 13.9 percent. A major contributor 
to this dramatic increase has been the large swings in 
commodity prices over this period. Commodity prices often 
fluctuate dramatically from year to year. This has a huge 
impact on the cost of mandatory programs, which make up 
approximately 75 percent of Function 350 programs.

                Summary of Committee-Reported Resolution

    The resolution calls for $24.0 billion in BA and $23.4 
billion in outlays in fiscal year 2004. The function totals are 
$125.1 billion in BA and $121.5 billion in outlays over 5 
years, and $240.8 billion in BA and $237.1 billion in outlays 
over 10 years.
    For fiscal year 2004 discretionary spending, the resolution 
allows for $5.1 billion in BA and $5.5 billion in outlays. It 
allows for $27.7 billion in BA and $27.7 billion in outlays 
over 5 years, and $59.5 billion in BA and $59.2 billion in 
outlays over 10 years.
    Mandatory spending in this function is $18.9 billion in BA 
and $17.8 billion in outlays in fiscal year 2004; $97.4 billion 
in BA and $93.8 billion in outlays over 5 years; and $181.3 
billion in BA and $177.9 billion in outlays over 10 years.

                    DEPARTMENT OF HOMELAND SECURITY

    A portion of funding in this function goes toward 
activities of the new Department of Homeland Security. Please 
see the separate section on the Department in this report.

                            OTHER PRIORITIES

    Other items assumed in, or accommodated by, the resolution 
include:

Discretionary spending

 A $23-million increase for the APHIS inspection 
    budget. These funds will be used for inspections at certain 
    ports of entry; increasing the availability of vaccines for 
    foot-and-mouth disease and expanding diagnostic and other 
    scientific and technical services.

 An increase in the USDA food safety budget of $92 
    million. This includes an increase of $42 million for the 
    Food Safety and Inspection Service [FSIS].

 A $47-million increase for USDA's research agencies 
    for strengthening laboratory security measures; conducting 
    additional research on emerging animal diseases; new 
    vaccine development; new biosecurity database systems; and 
    continued development of the unified Federal-State 
    Diagnostic Network for identifying and responding to high 
    risk biological pathogens.

 A sum of $2.2 billion for agricultural research, 
    education, and extension programs--an increase of $30 
    million, including increases for bioterrorism, emerging and 
    exotic diseases, genomics, cyber security, and the National 
    Research Initiative [NRI].

 A total of $178 million in funding for the Common 
    Computing Environment program--an increase of $45 million, 
    or 33 percent. By modernizing the Department's computer 
    system, the program will help to improve employee 
    efficiency and internet access and electronic filing 
    capabilities.

Mandatory spending

 A $511-million, or 17-percent increase for the Risk 
    Management Agency, which administers the Crop Insurance 
    Program and protects producers against a wide range of 
    environmental risks.

 Full funding for trade assistance programs, including 
    a 39-percent increase for the Market Access Program, a 4-
    percent increase for the Public Law 480 program, and a 58-
    percent increase for the Dairy Export Incentive Program.

    These items are recommended for priority consideration in 
this function, within the overall framework of the across-the-
board percentage reduction assumed in the budget resolution. 
Notwithstanding the recommended level for Function 350, the 
budget resolution provides a lump sum for discretionary 
spending to the Appropriations Committee, which makes 
allocations to its subcommittees based on its priorities. 
Therefore, the aggregate funding levels in this function may 
increase or decrease depending on how committees determine the 
savings.
               FUNCTION 370: COMMERCE AND HOUSING CREDIT

                              ----------                              



                                    FUNCTION 370: COMMERCE AND HOUSING CREDIT
                                   [On-budget amounts in billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............        8.8        7.4        8.6        8.1        9.2        8.6       86.7
    Outlays........................        5.9        3.6        4.1        3.1        3.4        2.4       26.5
Discretionary Spending:
    Budget Authority...............        0.2       -0.5       -0.2       -0.5        0.6        0.9        7.1
    Outlays........................        0.1        0.1       -0.3       -0.6        0.5        0.7        6.7
Mandatory Spending:
    Budget Authority...............        8.7        7.9        8.9        8.6        8.6        7.7       79.6
    Outlays........................        5.8        3.4        4.4        3.7        2.8        1.6       19.8
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    Function 370 includes four components: mortgage credit 
(usually negative BA because receipts tend to exceed the losses 
from defaulted mortgages); the Postal Service (mostly off 
budget); deposit insurance (negligible spending due to reserve 
supporting fees, etc.); and other advancement of commerce (the 
majority of the discretionary and mandatory spending in this 
function).
    The mortgage credit component of this function includes 
housing assistance through the Federal Housing Administration 
[FHA], the Federal National Mortgage Association [Fannie Mae], 
the Federal Home Loan Mortgage Corporation [Freddie Mac], the 
Government National Mortgage Association [Ginnie Mae], and 
rural housing programs of the Department of Agriculture. The 
function also includes net postal service spending and spending 
for deposit insurance activities of banks, thrifts, and credit 
unions. Finally, most, but not all, of the Commerce Department 
is provided for in this function including the International 
Trade Administration, Bureau of Economic Analysis, Patent and 
Trademark Office [PTO], National Institute of Standards and 
Technology, National Telecommunications and Information 
Administration, and the Bureau of the Census; as well as 
independent agencies such as the Securities and Exchange 
Commission [SEC], the Commodity Futures Trading Commission, the 
Federal Trade Commission, the Federal Communications Commission 
[FCC], and the majority of the Small Business Administration 
[SBA].
    More than two-thirds of the spending in Function 370 is out 
of the FCC's Universal Service Fund. (This fund receives the 
receipts accounted for as revenue that certain 
telecommunications operators derive from charges on their 
consumers and customers to promote service to low-income users 
and high-cost areas, as well as new services).
    The average annual increase in on-budget BA over the past 5 
years (1998-2003) for Function 370 is 2 percent. Off-budget BA 
is down $7.5 billion for the same 5 years and negative in 2003 
for the off-budget Postal Service due to receipts exceeding 
costs.

                Summary of Committee-Reported Resolution

    The resolution calls for $7.4 billion on-budget in BA and 
$3.6 billion in on-budget outlays in fiscal year 2004, a 
decline of 16 percent in BA compared with fiscal year 2003. The 
function totals are $42.0 billion in BA and $16.5 billion in 
outlays over 5 years, and $86.7 billion in BA and $26.5 in 
outlays over 10 years. However, when the ``off-budget'' U.S. 
Postal Service component is included (assuming the proposal 
regarding reduced Postal Service retirement payments to the 
Treasury--see Function 950), Function 370 actually goes up $2 
billion in the aggregate, from $5.2 billion in 2003 to $7.2 
billion in 2004, a 38-percent increase.
    For fiscal year 2004 discretionary spending, the resolution 
calls for approximately -$0.5 billion in BA and $0.1 billion in 
outlays. Discretionary funding is negative due to various 
receipts and offsets being accounted for here, including for 
FHA mortgage insurance and excess SEC and PTO fees. These off-
setting collections exceed the total costs of the Commerce 
Department, SBA, and other independent agencies.
    Mandatory on-budget spending in this function under the 
resolution is $7.9 billion in BA and $3.4 billion in outlays in 
fiscal year 2004; $41.7 billion in BA and $16.0 billion in 
outlays over 5 years, and $79.6 billion in BA and $19.8 billion 
in outlays over 10 years. Over the 2004-2008 period, mandatory 
on-budget spending declines by $1.0 billion. The mandatory 
spending is all at current law levels, the majority of which is 
out of the Universal Service Fund for telecommunications 
service subsidies to schools, libraries, health care providers, 
high-cost areas and low-income consumers.

                    DEPARTMENT OF HOMELAND SECURITY

    A portion of funding in this function goes toward 
activities of the new Department of Homeland Security. Please 
see the separate section on the Department in this report.

                            OTHER PRIORITIES

    The resolution assumes other funding for homeland security 
purposes of the Commerce Department, including: $83.9 million 
for the Bureau of Industry and Security to inhibit the global 
spread of dual-use technologies that could be used in 
biological, chemical, and nuclear weapons of mass destruction, 
(formerly the Bureau of Export Administration); $10.3 million 
for the National Institute of Standards and Technology; and 
$3.7 million for the International Trade Administration.

Discretionary spending

    The SEC can be increased to hire more accountants, 
attorneys, and examiners to protect investors, root out fraud, 
and combat corporate wrongdoing. Other activities authorized 
under the Oxley-Sarbanes Act, including the Public Company 
Accounting Oversight Board and for a standards setting body, 
can be fully provided for in this function as well. Funds for 
Census Bureau needs and planning toward re-engineering the 2010 
decennial population count are also assumed. SBA can make 
available almost $21 billion in non-disaster small business 
loans, $5.5 billion more than today, under this resolution. 
(SBA disaster loans are accounted for in Function 450, Regional 
and Community Development).

Mandatory spending

    The resolution assumes the following mandatory spending 
policies: Reduction of the Postal Service's contributions to 
the Civil Service trust fund, Merger of the Bank Insurance Fund 
and the Savings Association Insurance Fund, which will reduce 
premium payments collected by the combined fund, and 
legislation to pay interest on bank deposits with the Federal 
Reserve, known as sterile reserves. The resolution also assumes 
enactment of legislation providing regulatory relief to certain 
financial services companies which gives them new investment, 
lending and ownership options.

    These items are recommended for priority consideration in 
this function, within the overall framework of the across-the-
board percentage reduction assumed in the budget resolution. 
Notwithstanding the recommended level for this function, the 
budget resolution provides a lump sum for discretionary 
spending to the Appropriations Committee, which makes 
allocations to its subcommittees based on its priorities.
                      FUNCTION 400: TRANSPORTATION

                              ----------                              



                                          FUNCTION 400: TRANSPORTATION
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       64.1       65.4       65.8       66.7       67.7       68.6      698.4
    Outlays........................       67.8       73.8       69.9       68.4       68.3       68.7      712.4
Discretionary Spending:
    Budget Authority...............       22.6       22.2       22.1       22.5       23.0       23.6      242.7
    Outlays........................       65.2       71.6       67.7       66.4       66.4       66.8     692.74
Mandatory Spending:
    Budget Authority...............       41.5       43.2       43.6       44.1       44.7       45.1      455.7
    Outlays........................        2.7        2.2        2.1        2.0        1.9        1.9       19.7
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    This function funds all major Federal transportation modes 
and programs including the Transportation Security 
Administration; the Federal Highway Administration; the Federal 
Transit Administration; the National Rail Passenger Corporation 
[Amtrak]; highway, motor carrier and rail safety programs; the 
Federal Aviation Administration; the aeronautical activities of 
the National Aeronautics and Space Administration [NASA]; the 
Coast Guard; the Maritime Administration; and other 
transportation support activities.
    Spending in Function 400 grew from $45.3 billion in BA in 
fiscal year 1998 to $64.1 billion in BA in fiscal year 2003. BA 
for Transportation is 3.0 percent of total Federal BA, above 
the recent historical low of 2.3 percent in 1996. 
Transportation BA was about 3.1 percent of the Federal budget 
in 1983, and 2.7 percent in 1993.

                Summary of Committee-Reported Resolution

    The resolution calls for $65.4 billion in BA and $73.8 
billion in outlays in fiscal year 2004, an increase of 2.1 
percent in BA compared with fiscal year 2003. The function 
totals are $334.2 billion in BA and $349.1 billion in outlays 
over 5 years, and $698.4 billion in BA and $712.4 billion in 
outlays over 10 years.
    For fiscal year 2004 discretionary spending, the resolution 
calls for $22.2 billion in BA and $71.6 billion in outlays. The 
resolution calls for $113.5 billion in BA and $338.9 billion in 
outlays over 5 years, and $242.7 billion in BA and $692.74 
billion in outlays over 10 years.
    Mandatory spending in this function is $43.2 billion in BA 
and $2.2 billion in outlays in fiscal year 2004; and $220.8 
billion in BA and $10.2 billion in outlays over 5 years; and 
$455.7 billion in BA and $19.7 billion in outlays over 10 
years.

                    DEPARTMENT OF HOMELAND SECURITY

    A portion of funding in this function goes toward 
activities of the new Department of Homeland Security. Please 
see the separate section on the Department in this report.

                           HIGHWAY TRUST FUND

    The resolution provides $39.2 billion in BA from the 
Highway Trust Fund for highway, highway safety, and transit 
programs. The resolution is $3.7 billion over and above the 
estimated receipts of the Highway Trust Fund, and spends down 
the existing balance of the Trust Fund. The resolution also 
assumes the transfer of the receipts from the 2.5-cent gasohol 
deficit reduction tax from the General Fund to the Highway 
Trust Fund, increasing receipts by almost $700 million per 
year. The budget resolution creates a contingency procedure to 
permit the Transportation and Infrastructure Committee to 
increase spending above the level in the budget resolution on 
highways, highway safety, and transit in the surface 
transportation reauthorization bill it will consider later this 
year, should additional resources be made available to the 
Highway Trust Fund.

                            OTHER PRIORITIES

    The budget resolution recommends $14.0 billion for the 
Federal Aviation Administration, an increase of $425 million 
over fiscal year 2003 (not including emergency supplemental 
funding).
    These funding levels will support other important 
transportation objectives, consistent with the president's 
recommendations, including:

 Increased Funding for Passenger Rail. The budget 
    resolution recommends $900 million for the National 
    Passenger Railroad Corporation [Amtrak] for operations, 
    maintenance, and capital improvements.

 Transportation for the Disabled. The budget resolution 
    assumes the President's initiative to provide $145 million 
    to the Federal Transit Administration to expand 
    transportation opportunities for individuals with 
    disabilities through the New Freedom Initiative.

    These items are recommended for priority consideration in 
this function, within the overall framework of the across-the-
board percentage reduction assumed in the budget resolution. 
Notwithstanding the recommended level for this function, the 
budget resolution provides a lump sum for discretionary 
spending to the Appropriations Committee, which makes 
allocations to its subcommittees based on its priorities. 
Therefore, the aggregate funding levels in this function may 
increase or decrease depending on how committees determine the 
savings.
            FUNCTION 450: COMMUNITY AND REGIONAL DEVELOPMENT

                              ----------                              



                                FUNCTION 450: COMMUNITY AND REGIONAL DEVELOPMENT
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       12.3       14.1       14.4       14.6       15.0       15.4      155.8
    Outlays........................       16.0       15.9       16.0       15.1       14.9       14.5      154.1
Discretionary Spending:
    Budget Authority...............       11.7       13.9       14.2       14.5       14.8       15.3      155.0
    Outlays........................       16.1       16.0       16.1       15.3       15.1       14.8      156.7
Mandatory Spending:
    Budget Authority...............        0.5        0.2        0.1        0.1        0.1        0.0        0.8
    Outlays........................       -0.1       -0.1       -0.1       -0.2       -0.2       -0.3       -2.6
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    Function 450 includes programs that provide Federal funding 
for economic and community development in both urban and rural 
areas, including: Community Development Block Grants [CDBGs]; 
the non-power activities of the Tennessee Valley Authority; the 
non-roads activities of the Appalachian Regional Commission; 
the Economic Development Administration [EDA]; and partial 
funding for the Bureau of Indian Affairs. Funding for disaster 
relief and insurance--including the Federal Emergency 
Management Agency [FEMA], now part of the new Department of 
Homeland Security--also appear here.
    The resolution proposes $14.1 billion in BA and $15.9 
billion in outlays for fiscal year 2004 for this function. This 
represents an increase of 15.4 percent in BA and a decline of 
0.4 percent in outlays from the fiscal year 2003 level. Over 
the period 1998-2003, spending will have increased an average 
annual increase of 2.9 percent. The decline in outlays results 
from the one-time emergency funding for FEMA, and CDBGs that 
went for recovery efforts in New York after the terrorist 
attacks of September 11, 2001. Outlays exceed BA in 2004 
because one-time fiscal year 2002 emergency spending in FEMA 
for recovery from the terrorist attacks of 11 September 2001, 
and because of CDBG funds still in the pipeline. Outlays 
decline relative to fiscal year 2003, also because of the end 
of one-time spending increases in the function, which resulted 
from the 11 September attacks.

                Summary of Committee-Reported Resolution

    The resolution calls for $14.1 billion in BA and $15.9 
billion in outlays in fiscal year 2004, an increase of 15.4 
percent in BA compared with fiscal year 2003. The function 
totals are $73.5 billion in BA and $76.5 billion in outlays 
over 5 years, and $155.8 billion in BA and $154.1 billion in 
outlays over 10 years.
    For fiscal year 2004 discretionary spending, the resolution 
provides $13.9 billion in BA and $16.0 billion in outlays. It 
calls for $72.8 billion in BA and $77.3 billion in outlays over 
5 years, and $155.0 billion in BA and $156.7 billion in outlays 
over 10 years.
    Mandatory spending in this function is $0.2 billion in BA 
and -$0.1 billion in outlays in fiscal year 2004; $0.6 billion 
in BA and -$0.9 billion in outlays over 5 years; and $0.8 
billion in BA and -$2.6 billion in outlays over 10 years.

                    DEPARTMENT OF HOMELAND SECURITY

    A portion of funding in this function goes toward 
activities of the new Department of Homeland Security. Please 
see the separate section on the Department in this report.

                            OTHER PRIORITIES

Discretionary spending

    The resolution accommodates spending $4.7 billion on CDBGs. 
These grants provide annual grants to more than 1,000 eligible 
cities, counties, and States to fund activities aimed at ``the 
development of viable urban communities.''
    Flood Insurance Mapping funding is assumed to increase to 
complete updating of flood maps. The resolution contains $200 
million, identical to last year's administration request, to 
continue replacing the Nation's flood insurance rate maps, many 
of which are out of date and inaccurate.
    The resolution assumes nearly $1.5 billion for Rural 
Wastewater Loans and Grants, which have demonstrated 
effectiveness at increasing the number of small rural 
communities with safe drinking water and modern sewer systems. 
This is the same as the administration's 2003 request.

Mandatory spending

    The resolution makes no specific mandatory assumptions in 
this function.

    These items are recommended for priority consideration in 
this function, within the overall framework of the across-the-
board percentage reduction assumed in the budget resolution. 
Notwithstanding the recommended level for this function, the 
budget resolution provides a lump sum for discretionary 
spending to the Appropriations Committee, which makes 
allocations to its subcommittees based on its priorities. 
Therefore, the aggregate funding levels in this function may 
increase or decrease depending on how committees determine the 
savings.
   FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES

                              ----------                              



                       FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       86.2       84.7       84.4       86.7       88.6       90.8      914.5
    Outlays........................       81.3       85.7       83.6       84.6       86.4       88.3      898.5
Discretionary Spending:
    Budget Authority...............       72.9       75.4       74.2       75.8       77.5       79.4      802.0
    Outlays........................       72.0       74.2       73.1       74.4       75.9       77.7      789.1
Mandatory Spending:
    Budget Authority...............       13.3        9.4       10.2       10.9       11.2       11.4      112.4
    Outlays........................        9.4       11.5       10.5       10.2       10.5       10.7      109.4
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    Function 500 consists of Education, Training and Social 
Service programs. Education spending consumes two-thirds of the 
function total, including elementary and secondary education 
services, higher education aid, and research and general 
education aids--the latter category incorporating funding for 
arts, humanities, museums, libraries and public broadcasting. 
Job training and other Labor Department activities are located 
in this function, as are social services including the Social 
Services Block Grant, vocational rehabilitation, and national 
service.
    Function 500 BA rose from $56.7 billion in 1998 to $86.2 
billion in 2003, a 9-percent average annual growth rate. During 
the same time period, outlays rose from $50.5 billion to $81.3 
billion, a 10 percent average annual growth rate. The largest 
component of this was the budget of the Department of 
Education, whose BA grew from $35.5 billion in 1998 to $61 
billion in 2003, an 11-percent average annual increase.

                Summary of Committee-Reported Resolution

    Total BA and mandatory BA in this function decline between 
2003 and 2004 chiefly for these two reasons: a $4.6 billion 
upward reestimate by CBO of the cost of the outstanding direct 
student loan portfolio (the entire sum is recorded as new BA in 
2003); and the addition of $3.6 billion in BA in 2003 to 
reflect the resolution's reconciliation instructions to the 
Committee on Education and the Workforce establishing new 
Personal Re-employment Accounts [PRAs] for unemployed workers.
    The resolution calls for $84.7 billion in BA and $85.7 
billion in outlays in fiscal year 2004. The function totals are 
$435.2 billion in BA and $428.7 billion in outlays over 5 
years, and $914.5 billion in BA and $898.5 billion in outlays 
over 10 years.
    Discretionary spending in this function is $75.4 billion in 
BA and $74.2 billion in outlays in fiscal year 2004. This is an 
increase of $2.5 billion in BA and $2.2 billion in outlays over 
fiscal year 2003. Discretionary spending totals $382.2 billion 
in BA and $375.2 billion in outlays over 5 years, and $802 
billion in BA and $789.1 billion in outlays over 10 years.
    Mandatory spending in this function is $9.4 billion in BA 
and $11.5 billion in outlays in fiscal year 2004. This is a 
reduction of $3.9 billion in BA and an increase of $2.1 billion 
in outlays from fiscal year 2003. Mandatory spending totals $53 
billion in BA and $53.4 billion in outlays over 5 years, and 
$112.4 billion in BA and $109.4 in outlays over 10 years.
    Key items assumed or accommodated by the resolution levels 
include:

Discretionary spending

 No Child Left Behind. The resolution accommodates an 
    increase of at least $666 million, to $12.35 billion, for 
    Title I grants to low-income school districts. These grant 
    funds are intended to help schools in high-poverty 
    communities meet the accountability standards established 
    in the No Child Left Behind [NCLB] Act of 2001. Funding at 
    the assumed level would result in a 10 percent average 
    annual growth rate for Title I since 1999. The resolution 
    accommodates $1.15 billion, an $82-million increase, for 
    the reading education programs that are central to NCLB. 
    Funding at the assumed level would result in a 33-percent 
    average annual growth rate for reading spending since 1999. 
    The resolution also accommodates $2.85 billion for Teacher 
    Quality State Grants. Funding at the assumed level would 
    result in a 13-percent average annual growth rate in 
    teacher quality spending since 1999.

 Pell Grants. The resolution assumes at least $12.7 
    billion would go toward the Pell Grant program for low-
    income undergraduate students, a $1.34-billion increase 
    from 2003. This is one of the largest programmatic 
    increases assumed in the entire resolution. It would fund 
    awards for nearly 5 million students--almost 1 million more 
    than when President Bush took office. The resolution also 
    assumes the President's proposal to allow the Department of 
    Education to match reported income data of Pell applicants 
    with data from the Internal Revenue Service, eliminating 
    under-awards and over-awards, while producing savings to 
    pay down the Pell shortfall. Funding for Pell at the 
    assumed level would result in a 11 percent average annual 
    growth rate since 1999.

 Special Education. Special education remains a top 
    congressional priority. The resolution assumes an increase 
    of at least $660 million for Individuals with Disabilities 
    Education Act [IDEA] Part B Grants to States, to continue 
    progress toward full funding of the authorized maximum 
    level of 40 percent of the national average per pupil 
    expenditure for schoolchildren, thus reducing the burden on 
    States. This year's scheduled reauthorization of IDEA could 
    also alleviate the burden on States by reducing over-
    identification and unnecessarily burdensome legal 
    requirements. Funding at the assumed level would result in 
    a 17-percent average annual growth rate in special 
    education spending since 1999.

 Impact Aid. The resolution assumes an increase of $50 
    million for the Impact Aid program, to ensure that school 
    districts accepting children of military personnel are 
    appropriately compensated, and to help ensure that these 
    children are not left behind academically.

 School Choice and Flexibility. The resolution 
    accommodates increased funding for programs encouraging 
    school choice. The assumptions include a $21-million 
    increase in Charter School grants and a $75-million 
    increase in the Credit Enhancement for Charter Schools 
    Facilities program. The resolution also assumes the 
    creation of new, $75 million Choice Incentive Fund that 
    encourages both public and private choice, while reserving 
    a portion of program funds to encourage school choice in 
    the District of Columbia.

Mandatory spending

 New Re-employment Accounts. The resolution includes 
    reconciliation instructions to the Committee on Education 
    and the Workforce to create re-employment accounts as a 
    temporary new benefit. As recommended in the President's 
    economic growth proposal, $3.6 billion in BA is provided in 
    2003 for the establishment of these accounts. These funds 
    would enable the States to establish accounts containing up 
    to $3,000 for approximately 1.2 million unemployed 
    individuals. Account funds could be used to purchase 
    training, child care, or other services to help enable job-
    seekers to rejoin the workforce. Those individuals who 
    become re-employed within 13 weeks would be eligible to 
    keep the remaining balance in their account.

    These items are recommended for priority consideration in 
this function, within the overall framework of the across-the-
board percentage reduction assumed in the budget resolution. 
Notwithstanding the recommended level for this function, the 
budget resolution provides a lump sum for discretionary 
spending to the Appropriations Committee, which makes 
allocations to its subcommittees based on its priorities. 
Therefore, the aggregate funding levels in this function may 
increase or decrease depending on how committees determine the 
savings.
                          FUNCTION 550: HEALTH

                              ----------                              



                                              FUNCTION 550: HEALTH
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............      221.9      235.0      248.6      265.3      284.1      303.5    3,193.7
    Outlays........................      218.0      235.4      248.3      264.8      283.2      302.4    3,184.8
Discretionary Spending:
    Budget Authority...............       49.5       48.1       49.1       50.2       51.3       52.6      533.9
    Outlays........................       44.3       47.1       48.2       49.1       50.2       51.1      520.1
Mandatory Spending:
    Budget Authority...............      172.4      187.0      199.5      215.1      232.8      250.9    2,659.8
    Outlays........................      173.7      188.3      200.0      215.7      233.0      251.3    2,664.7
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    The Health function consists of health care services, 
including Medicaid, the Nation's major program covering medical 
and long-term care costs for low-income persons; the State 
Children's Health Insurance Program [SCHIP], health research 
and training, including NIH and substance abuse prevention and 
treatment; and consumer and occupational health and safety, 
including the Occupational Safety and Health Administration. 
Medicaid represents about 71 percent of the spending in this 
function.
    Over the period 1998-2003, total BA in Function 550 rose 
from $135.1 billion to $221.9 billion, a 10.4-percent average 
annual increase. The largest component of this growth was 
Medicaid, which increased from $101.2 billion to $147.5 
billion. Even this increase represents a moderation of Medicaid 
growth compared with the early 1990s, when Medicaid spending 
more than doubled between 1990 and 1995.

                Summary of Committee-Reported Resolution

    The resolution calls for $235 billion in BA and $235.4 
billion in outlays in fiscal year 2004, an increase of 5.9 
percent in BA compared with fiscal year 2003. The function 
totals are $1.3 trillion in BA and $1.3 trillion in outlays 
over 5 years, and $3.2 trillion in BA and $3.2 trillion in 
outlays over 10 years.
    For fiscal year 2004 discretionary spending, the resolution 
provides for $48.1 billion in BA and $47.1 billion in outlays. 
It calls for $251.2 billion in BA and $245.7 billion in outlays 
over 5 years, and $533.9 billion in BA and $520.1 billion in 
outlays over 10 years.
    Mandatory spending in this function is $187.0 billion in BA 
and $188.3 billion in outlays in fiscal year 2004; $1.1 
trillion in BA and $1.1 trillion in outlays over 5 years; and 
$2.7 trillion in BA and $2.7 trillion in outlays over 10 years. 
Over the 2004-2013 period, mandatory spending grows by $176.9 
billion.

                    DEPARTMENT OF HOMELAND SECURITY

    A portion of funding in this function goes toward 
activities of the new Department of Homeland Security. Please 
see the separate section on the Department in this report.

                            OTHER PRIORITIES

Discretionary spending

    The Department of Health and Human Services [HHS] plays a 
lead role in addressing bio-terrorism--a critical part of the 
budget's effort to enhance homeland security. Four key HHS 
components participate in homeland bio-terrorism security: the 
Centers for Disease Control and Prevention [CDC], the Food and 
Drug Administration [FDA], the Health Resources and Services 
Administration [HRSA], and the National Institutes of Health 
[NIH]. In fiscal year 2004, total spending for HHS's bio-
terrorism efforts would be $3.6 billion. These funding levels 
will support critical bio-defense security initiatives, 
consistent with the President's recommendations.
    The NIH has been a priority for Congress during the past 
several years. Consequently, funding for the Institutes has 
been boosted from $13.6 billion in fiscal year 1998 to $27.2 
billion in fiscal year 2003. The budget assumes that by fiscal 
year 2004, NIH funding will have more than doubled over the 
1998 level, to $27.9 billion.

Mandatory spending

    The resolution provides for Medicaid reform to give States 
greater flexibility and to provide health insurance coverage 
for new populations. The budget establishes a reserve fund of 
$3.25 billion in fiscal year 2004 and $8.9 billion over 5 years 
for Medicaid reform. Over 10 years budget neutrality would be 
achieved.
    Currently, about one-third of Medicaid recipients are not 
required by Federal Medicaid law to be covered under a State's 
Medicaid plan. These optional categories of recipients are 
covered at the discretion of the States. The committee of 
jurisdiction may give the States flexibility to redesign 
benefits, co-payments, premiums and other items that in the 
past would have required them to obtain a waiver from HHS. More 
of the Nation's uninsured could be covered under the reform 
proposal, especially adults without children.
    Other Medicaid policies include assumptions that expiring 
fiscal year 2000 State Children's Health Insurance Program 
funds will be extended for 1 year, that Transitional Medicaid 
Assistance and the Qualifying Individuals programs [QI-1] are 
extended for 5 years, and that the Vaccines for Children 
program will be modified to allow health departments to give 
vaccines.
    The resolution also assumes enactment of abstinence 
education legislation and assumes States will have the option 
to expand Medicaid coverage for children with special needs, 
allowing families of disabled children the opportunity to 
purchase coverage under the Medicaid program for such children.
    These items are recommended for priority consideration in 
this function, within the overall framework of the across-the-
board percentage reduction assumed in the budget resolution. 
Notwithstanding the recommended level for this function, the 
budget resolution provides a lump sum for discretionary 
spending to the Appropriations Committee, which makes 
allocations to its subcommittees based on its priorities. 
Therefore, the aggregate funding levels in this function may 
increase or decrease depending on how committees determine the 
savings.
                         FUNCTION 570: MEDICARE

                              ----------                              



                                             FUNCTION 570: MEDICARE
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............      248.6      261.3      275.5      312.4      332.0      352.4    3,663.0
    Outlays........................      248.4      261.6      278.4      309.3      332.3      352.3    3,663.1
Discretionary Spending:
    Budget Authority...............        3.8        3.6        3.7        3.8        3.9        4.0       42.5
    Outlays........................        3.8        3.7        3.7        3.8        3.9        4.0       42.4
Mandatory Spending:
    Budget Authority...............      244.8      257.7      271.8      308.7      328.1      348.4    3,620.5
    Outlays........................      244.6      258.0      274.7      305.5      328.4      348.3    3,620.7
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    This budget function reflects the Medicare Part A Hospital 
Insurance [HI] Program, Part B Supplementary Medical Insurance 
[SMI] Program, and premiums paid by qualified aged and disabled 
beneficiaries. It also includes the ``Medicare+Choice'' 
Program, which covers Part A and Part B benefits and allows 
beneficiaries to choose certain private health insurance plans. 
Medicare+Choice plans may include health maintenance 
organizations, preferred provider organizations, provider-
sponsored organizations, and private fee-for-service plans. In 
addition to covering all Medicare-covered services, such plans 
may add benefits or reduce cost-sharing required by the 
traditional Medicare program.
    Over the period 1998-2003, total BA in Function 570 rose 
from $193.7 billion to $248.6 billion, a 5.1 percent average 
annual increase over the period. Medicare actually experienced 
a decrease in spending from 1998 to 1999, although that 
slowdown was in contrast to the first half of the 1990s when 
Medicare spending experienced approximately 13 percent average 
annual growth rates.

                Summary of Committee-Reported Resolution

    The resolution calls for $261.3 billion in BA and $261.6 
billion in outlays in fiscal year 2004, an increase of 5.1 
percent in BA compared with fiscal year 2003. The function 
totals are $1.5 trillion in BA and $1.5 trillion in outlays 
over 5 years and $3.7 trillion in BA and $3.7 trillion in 
outlays over 10 years. Over the 2004-2013 period, Medicare 
spending grows by 7 percent annually.
    For fiscal year 2004 discretionary spending, the resolution 
calls for $3.6 billion in BA and $3.7 billion in outlays. This 
is a decrease of $0.2 billion in BA and $0.1 billion in outlays 
from fiscal year 2003. Discretionary spending totals $19.0 
billion in BA and $19.1 billion in outlays over 5 years, and 
$42.5 billion in BA and $42.4 billion in outlays over 10 years.
    For fiscal year 2004 mandatory spending, the resolution 
calls for $257.7 billion in BA and $258.0 billion in outlays. 
This is an increase of $12.9 billion in BA and $13.3 in outlays 
from fiscal year 2003. Mandatory spending totals $1.5 trillion 
in BA and $1.5 trillion in outlays over 5 years and $3.6 
trillion in BA and $3.6 trillion in outlays over 10 years.

          MEDICARE MODERNIZATION AND PRESCRIPTION DRUG BENEFIT

    This function allocates $400 billion over 10 years for 
Medicare modernization and a prescription drug benefit. This is 
equal to the amount the President proposed in his fiscal year 
2004 budget. It is also in addition to the $54 billion increase 
in Medicare spending in the Fiscal Year 2003 Omnibus 
Appropriations bill.
    The $400-billion amount is rolled into the 1-percent 
across-the-board reconciliation instructions for the Energy and 
Commerce and Ways and Means Committees. In other words, the 
instructions for these committees reflects the net of the $400-
billion addition for Medicare and $372 billion in savings 
($110.6 billion for Energy and Commerce plus $261.8 billion for 
Ways and Means).

                          THE NEED FOR REFORM

    The principal arguments for Medicare reform are the 
following:
    Medicare's Financial Liabilities. Medicare baseline growth 
will average 6.5 percent annually over the next decade. 
According to CBO, Medicare baseline spending is about $259.3 
billion in fiscal year 2004, and is projected to nearly double 
in the next 10 years, to $464.8 billion in fiscal year 2013. 
The sources of spending growth are primarily automatic payment 
updates in Medicare, and increased caseload projections.
    Taking the entire Medicare program together, including 
Parts A and B, dedicated Medicare revenues (i.e. payroll taxes, 
Social Security benefit taxes, premiums) fall far short of 
covering total Medicare costs--notwithstanding the Part A 
surplus. Even today, Medicare's dedicated revenues are lower 
than expenditures for the program as a whole. As a result, 
Medicare is increasingly relying on general Federal revenue. 
The Medicare Trustees project that Medicare expenditures as a 
percentage of GDP will nearly quadruple, from 2.4 percent now 
to 8.5 percent in 2076. At the same time, dedicated revenues 
will only grow from 1.9 percent of GDP currently to 2.5 percent 
in 2076. The President's budget says Medicare has a $13.3-
trillion shortfall, as measured by the present discounted value 
of the program's future benefits net of future income over the 
next 75 years. Taken together, Medicare, Social Security, and 
Medicaid are projected to eventually consume virtually all 
Federal revenue.
    In addition to the financial liabilities facing the total 
Medicare program, Medicare Part A is facing its own problems. 
Income dedicated to the Hospital Insurance Program (i.e. 
Medicare Part A) currently exceeds its expenses. The excess 
cash is used to purchase Government securities, which are 
credited to the HI Trust Fund (a system analogous to the Social 
Security trust funds). According to the Trustees' latest 
report, payments out of the HI Trust Fund will exceed its 
direct income in 2016 (or 2021 including interest). After 2021, 
the securities in the HI trust fund will have to be redeemed to 
pay benefits. The cash to redeem these bonds can come from only 
three places: from drawing funding away from other Federal 
programs; from higher taxes; or from higher debt.
    In 2030, according to the Trustees current estimates, the 
HI Trust Fund itself will have insufficient securities to pay 
benefits obligated by Medicare. This is the date, therefore, at 
which the trust fund will be considered insolvent. But as the 
discussion above shows, by this time Medicare already will have 
become a severe drain on the Federal budget.
    Medicare's Outmoded Benefit. Medicare was established in 
1965 and has lagged behind private health coverage over the 
years. Medicare's outmoded benefit does not cover prescription 
drugs, provide consistent coverage for many preventive 
treatments, support coordinated management of chronic diseases, 
or offer catastrophic coverage.
    Medicare Complexity. Recently, providers have testified at 
congressional hearings regarding Medicare complexity. Among 
other things, witnesses stated that regulations have become so 
complex beneficiaries are being denied entitled services. In 
rural areas, beneficiaries are not able to take advantage of 
programs intended to help them because the procedures to 
receive such assistance requires nearly the amount of work to 
apply for a NIH sponsored research award. According to a 
February 2002 General Accounting Office report: ``[T]he 
complexity of the environment in which CMS operates the 
Medicare program cannot be overstated.''
                     FUNCTION 600: INCOME SECURITY

                              ----------                              



                                          FUNCTION 600: INCOME SECURITY
                                            [In billions of dollars)
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............      326.6      315.9      326.5      332.4      337.2      345.9    3,524.3
    Outlays........................      334.4      321.6      329.9      334.9      339.2      347.1    3,543.0
Discretionary Spending:
    Budget Authority...............       44.0       44.4       45.2       46.2       46.3       46.5      476.7
    Outlays........................       50.8       50.6       48.9       49.4       49.1       48.9      503.5
Mandatory Spending:
    Budget Authority...............      282.6      271.5      281.2      286.3      290.9      299.4    3,047.6
    Outlays........................      283.6      271.0      280.9      285.5      290.1      298.2    3,039.5
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    The Income Security function (Function 600) includes most 
of the Federal Government's income support programs. These 
include: general retirement and disability insurance (excluding 
Social Security)--mainly through the Pension Benefit Guaranty 
Corporation [PBGC]--and benefits to railroad retirees. Other 
components are Federal employee retirement and disability 
benefits (including military retirees); unemployment 
compensation; low-income housing assistance, including Section 
8 housing; food and nutrition assistance, including food stamps 
and school lunch subsidies; and other income security programs.
    This last category includes: Temporary Assistance to Needy 
Families [TANF], the Government's principal welfare program; 
Supplemental Security Income [SSI]; spending for the refundable 
portion of the Earned Income Credit [EIC]; and the Low Income 
Home Energy Assistance Program [LIHEAP]. Agencies involved in 
these programs include the Departments of Agriculture, Health 
and Human Services, Housing and Urban Development, the Social 
Security Administration (for SSI), and the Office of Personnel 
Management (for Federal retirement benefits).
    Over the period 1998-2003, BA in the function has had an 
average annual increase of 6.4 percent. BA and outlays in the 
function in fiscal year 2004 decline relative to fiscal year 
2003 primarily because of the termination of the extended 
Federal Unemployment Insurance Benefits in May of 2003. 
Additionally, the reauthorization of the Contingency Fund in 
the TANF Program in fiscal year 2003 causes a one-time spike in 
BA and outlays during fiscal year 2003 relative to the 
remaining period for which the program is reauthorized.

                Summary of Committee-Reported Resolution

    The resolution calls for $315.9 billion in BA and $321.6 
billion in outlays in fiscal year 2004. The function totals are 
$1.7 trillion in BA and $1.7 trillion in outlays over 5 years, 
and $3.5 trillion in BA and $3.5 trillion in outlays over 10 
years.
    For fiscal year 2004 discretionary spending, the resolution 
calls for $44.4 billion in BA and $50.6 billion in outlays. 
Discretionary levels are $228.7 billion in BA and $246.9 
billion in outlays over 5 years, and $476.7 billion in BA and 
$503.5 billion in outlays over 10 years.
    Mandatory spending in this function is $271.5 billion in BA 
and $271.0 billion in outlays in fiscal year 2004; and $1.4 
trillion in BA and $1.4 trillion in outlays over 5 years, and 
$3 trillion in BA and $3 trillion in outlays over 10 years. 
Over the 2004-2008 period, mandatory spending grows by $27.9 
billion. Over the 2004-2013 period, mandatory spending grows by 
$70.4 billion.

Discretionary spending

    The resolution accommodates the President's recommended 
$4.8 billion in BA for the Special Supplemental Feeding Program 
for Women, Infants and Children [WIC]. This funding level 
should be sufficient to serve all 7.8 million of the WIC-
eligible population. In the event that additional funding is 
necessary to meet this goal, the resolution assumes a $150-
million contingency fund to meet additional unanticipated 
needs. The proposal for WIC includes a $5 million initiative to 
combat childhood obesity, and $20 million to support breast 
feeding. Management initiatives include $5 million for an 
evaluation of the program, and $30 million to improve State 
management information systems.
    The resolution allows for $2 billion in 2004 for LIHEAP. Of 
that amount, $300 million would be reserved in an emergency 
contingency fund which requires a Presidential declaration of 
an emergency in order to be spent. If the assumed level is 
enacted by the Appropriations Committee, total funding for 
LIHEAP would be $212 million above the enacted level fiscal 
year 2003, including prior year carryover funding.

Mandatory spending

    The resolution accommodates $25.6 billion in BA for the 
Food Stamp Program. Participation in the program is assumed to 
increase 3 percent over fiscal year 2003. Last year's farm bill 
included a provision proposed by the administration to restore 
food stamp eligibility to certain noncitizens made ineligible 
under the welfare reform bill of 1996.
    The resolution allows $11.8 billion in funding for child 
nutrition programs such as the School Lunch and Breakfast 
program, Summer Feeding, and the Child and Adult Care Food 
Program. This amount is sufficient to support anticipated 
participation levels and food costs in these programs. These 
programs are scheduled for reauthorization in 2004.
    The budget resolution assumes that the TANF block grant, as 
well as the related child care entitlement to States and other 
elements of the 1996 welfare reform law will be reauthorized 
during fiscal year 2003 as passed by the House on 13 February 
2003 in the Personal Responsibility, Work, And Family Promotion 
Act of 2003. The funding levels provided for TANF reflect the 
relative stability of welfare caseloads, which increased only 1 
percent despite the economic downturn and increased 
unemployment levels. Though poverty rates increased slightly 
between 2000 and 2001, poverty is still near record lows for 
single-mother households and African-American families. More 
than 3 million children have left poverty since the TANF 
program was enacted in 1996.
    As part of that reauthorization process, the budget 
accommodates an additional $2.4 billion in mandatory spending 
for these programs over 5 years (2003-2008) above the baseline, 
which is consistent with the new spending levels contained in 
the reauthorization bill which passed the House in 2003. The 
resolution allows for the enactment of an additional $1 billion 
over 5 years in new mandatory child care funding which was 
included in the House bill. The budget accommodates $17.6 
billion for the TANF block grant in 2004. This would maintain 
the funding level at $16.7 billion annually for the block 
grant, or the level of the initial 6 years of the TANF program. 
The overall TANF authorization level would be slightly higher 
due to continuation of TANF supplemental grants, and other 
minor changes.
    The resolution allows for an additional $1 billion over 5 
years above current law for the mandatory child care 
entitlement to States, consistent with the amount contained in 
the House-passed reauthorization of TANF.
    The resolution assumes $4.5 billion would go to assist 
States with the administrative costs of enforcing court ordered 
child support. In fiscal year 2002, child support collections 
reached a record level of $20 billion, including a record $1.6 
billion in overdue child support collected from Federal income 
tax refunds. The resolution anticipates a number of changes 
proposed for the program as part of the reathorization of TANF. 
These include providing incentives to States to pass through 
more child support collections to custodial parents currently 
on welfare, as well as a greater percentage of child care 
arrearages collected on behalf of former welfare recipients. 
Also accommodated are proposals to increase the collection of 
delinquent child support through tougher sanctions, and new 
spending of $218 million to improve automated enforcement 
mechanisms such as database compilation and data matching.
    The resolution also accommodates the President's proposal 
to offer States an optional block grant for foster care 
payments. The resolution assumes $6.9 billion in 2004 for 
Foster Care and Adoption Assistance, including the Independent 
Living program which provides assistance to youths who are 
aging out of foster care. Of the total, $5.0 billion is for the 
foster care program, which provides maintenance payments to 
families caring for foster children.This amount includes a 
$238-million increase from the 2003 level, and is consistent 
with the President's legislative proposal to increase State 
flexibility in the program by offering foster care funding in 
the form of an optional block grant. States that take advantage 
of the block grant will obtain administrative simplification 
and greater flexibility to develop strategies to assist at-risk 
families and prevent family breakup and deter child abuse and 
neglect before it occurs.
    The resolution assumes enactment of legislation to reduce 
payments made by the Postal Service to the Civil Service 
Retirement and Disability Trust fund in response to evidence 
that the Postal Service may soon be overfunding accruing 
retirement benefits for its employees. This is due to higher 
than anticipated prior yields on past pension investments.
    The resolution provides for $39.8 billion in Unemployment 
Insurance Benefit payments in fiscal year 2004, a decline of 
$14 billion relative to 2003. The decline results in part 
because extended Federal Unemployment Insurance benefits 
enacted on 8 January, 2003 will terminate 31 May, 2003, and 
because economic assumptions assume a drop in the unemployment 
rate in 2004.
    The resolution assumes reforms of the Federal Employees 
Compensation Act [FECA], the workers compensation program for 
Federal employees, which will generate savings of $10 million 
in 2004 and $60 million over 5 years. Among the reforms are 
charging the full cost of employee benefits to the employing 
agency to create incentives for agencies to provide safer 
workplaces, instituting a waiting period before benefits are 
paid to discourage frivolous claims, and paying slightly higher 
benefits to all claimants, while eliminating the practice of 
providing higher benefit levels to employees with dependents 
versus those with no dependents, despite identical injuries and 
wage losses. The proposal also will eliminate the incentive for 
older FECA claimants to remain on the FECA rolls once they 
reach retirement age by paying beneficiaries over age 65 the 
equivalent benefit they would have received from their Federal 
retirement program. This proposal would apply to new claimants 
only, and holds harmless all current beneficiaries.
    The resolution seeks to reduce erroneous overpayments in 
SSI by accommodating $1.4 billion to conduct Continuing 
Disability Reviews [CDRs] of SSI Disability recipients to 
ensure that they remain sufficiently disabled in order to 
remain eligible for benefits, as well as non-disability 
redeterminations to verify that SSI recipients continue to have 
incomes and resources below the threshold for program 
eligibility. Additionally, the administration proposes to 
review up to 50 percent of new favorable SSI disability 
determinations prior to initiating payments to increase payment 
accuracy. The budget assumes savings of $194 million over 5 
years from these reviews.
    The resolution assumes the outlay portions of refundable 
tax credits contained in the President's economic growth 
package of tax incentives, together with the outlay effects of 
making refundable tax credit policies of the 2001 tax cuts 
permanent. Outlays are assumed for the Earned Income Tax Credit 
and the Child Tax Credit under these provisions.
    The resolution accommodates enactment of legislation to 
simplify computation of annuities under the Civil Service 
Retirement System for part-time service. It also assumes 
enactment of H.R. 4069, legislation providing for enhancement 
of Social Security benefits for women. The resolution also 
assumes enactment of legislation similar to H.R. 3762 from the 
107th Congress, which would make certain changes to laws 
governing pension plans regulated and insured by the Pension 
Benefit Guaranty Corporation, and which would alter premium 
payments made by firms with pensions plans covered by the PBGC.
    These items are recommended for priority consideration in 
this function, within the overall framework of the across-the-
board percentage reduction assumed in the budget resolution. 
Notwithstanding the recommended level for this function, the 
budget resolution provides a lump sum for discretionary 
spending to the Appropriations Committee, which makes 
allocations to its subcommittees based on its priorities. 
Therefore, the aggregate funding levels in this function may 
increase or decrease depending on how committees determine the 
savings.
                     FUNCTION 650: SOCIAL SECURITY

                              ----------                              



                                          FUNCTION 650: SOCIAL SECURITY
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       13.3       14.2       15.3       16.5       18.0       19.8      224.3
    Outlays........................       13.3       14.2       15.3       16.5       18.0       19.8      224.3
Discretionary Spending:
    Budget Authority...............        0.0        0.0        0.0        0.0        0.0        0.0        0.3
    Outlays........................        0.0        0.0        0.0        0.0        0.0        0.0        0.3
Mandatory Spending:
    Budget Authority...............       13.2       14.2       15.3       16.4       17.9       19.8      224.0
    Outlays........................       13.2       14.2       15.3       16.4       17.9       19.8      224.0
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    Function 650 consists of the Social Security Program, or 
Old Age, Survivors, and Disability Insurance [OASDI]. Under 
provisions of the Congressional Budget Act and the Budget 
Enforcement Act, Social Security trust funds are ``off 
budget.'' Nevertheless, a small portion of spending in Function 
650--specifically a portion of the budget for the Office of the 
Inspector General of the Social Security Administration [SSA], 
the quinquennial adjustment for World War II veterans, and 
general fund transfers of taxes paid on Social Security 
benefits--are on budget.

                Summary of Committee-Reported Resolution

    Total on-budget spending in the resolution is $14.2 billion 
in BA for fiscal year 2004, an increase of $967 million from 
the 2003 request.
              FUNCTION 700: VETERANS BENEFITS AND SERVICES

                              ----------                              



                                  FUNCTION 700: VETERANS BENEFITS AND SERVICES
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       57.6       60.7       65.8       64.0       62.3       65.7      670.4
    Outlays........................       57.5       60.7       65.3       63.7       62.0       65.5      667.7
Discretionary Spending:
    Budget Authority...............       26.5       27.3       27.7       28.2       28.6       29.2      301.7
    Outlays........................       26.9       27.5       27.6       28.0       28.5       29.1      300.5
Mandatory Spending:
    Budget Authority...............       31.1       33.4       38.1       35.8       33.7       36.5      368.7
    Outlays........................       30.6       33.2       37.7       35.7       33.5       36.4      367.2
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    The Veterans Benefits and Services function includes 
funding for the Department of Veterans Affairs [VA], which 
provides benefits to veterans who meet various eligibility 
rules. Benefits range from income security for veterans, 
principally disability compensation and pensions; veterans 
education, training, and rehabilitation services; hospital and 
medical care for veterans; and other veterans' benefits and 
services, such as home loan guarantees. There are about 25 
million veterans, but over the next 20 years this number will 
decline by one-third, to about 17 million.
    Over the period 1998-2003, total BA in Function 700 rose 
from $42.8 billion to $57.6 billion, excluding medical care 
receipts from veterans, a 6.1-percent average annual increase. 
The largest component of this growth was medical care, which 
increased from $17.9 billion to $23.6 billion.

                Summary of Committee-Reported Resolution

    The resolution calls for $60.7 billion in BA and $60.7 
billion in outlays in fiscal year 2004, an increase of 5.4 
percent in BA compared with fiscal year 2003. The function 
totals are $318.5 billion in BA and $317.3 billion in outlays 
over 5 years; and $670.4 billion in BA and $667.7 billion in 
outlays over 10 years.
    For fiscal year 2004 discretionary spending, the resolution 
calls for $27.3 billion in BA and $27.5 billion in outlays. 
This is an increase of $786 million in BA and $607 million in 
outlays over fiscal year 2003. Discretionary levels are $141 
billion in BA and $140.7 billion in outlays over 5 years, and 
$301.7 billion in BA and $300.5 billion in outlays over 10 
years.
    Mandatory spending in this function is $33.4 billion in BA 
and $33.2 billion in outlays in fiscal year 2004; $177.5 
billion in BA and $176.6 billion in outlays over 5 years; and 
$368.7 billion in BA and $367.2 billion in outlays over 10 
years. Over the 2004-2013 period, mandatory spending grows by 
$6.8 billion. (Mandatory spending in the function declines 
because of fluctuations in the number of yearly benefit 
payments).

Discretionary spending

    The resolution assumes veterans medical care resources are 
refocused. The emphasis would be on treating veterans with 
military disabilities, low-income or special needs. Currently, 
the VA assigns veterans receiving medical care to one of eight 
priority levels. Veterans with military disabilities, low-
income or special needs are given higher priority levels in 
line with VA's core mission. Veterans without these 
characteristics fall into the lowest priority levels (Priority 
Levels 7 and 8). The committee believes that the budget is 
sufficient to eliminate the long waits for VA medical care. The 
resolution assumes faster turnaround by focusing care on those 
who need it most.
    The resolution seeks to guarantee that veterans' disability 
claims are processed accurately and quickly, meeting the 
timeliness goal in claims processing set by Secretary Principi. 
It assumes funding for a major expansion in cemeteries to 
prepare for increased burial demands. The VA's goal is to 
ensure compassionate and good service, while searching for more 
efficient ways to meet increased burial demands.

Mandatory spending

    The resolution assumes the expansions and revisions of 
mandatory benefits proposed by the administration's fiscal year 
2004 budget. These include:
 Payment of full compensation to New Philippine Scouts 
    and Dependency and Indemnity to Filipino veteran survivors 
    residing in the United States,
 Retroactivity for a second headstone and allowing 
    States to receive a burial plot allowance for all veterans 
    buried at no cost to the veterans estate in State veterans 
    cemeteries, and
 Allowing an alternate beneficiary to claim National 
    Service Life Insurance and Veterans Special Life Insurance 
    proceeds.
    In addition, it assumes, as recommended by the Veterans 
Affairs Committee, continuation of Dependency and Indemnity 
Compensation for surviving spouses who remarry after age 55; an 
increase in auto allowance from $9,000 to $11,000 for severely 
disabled veterans; and accrued benefits for veteran's 
survivors. These items are recommended for priority 
consideration in this function, within the overall framework of 
the across-the-board percentage reduction assumed in the budget 
resolution. Notwithstanding the recommended level for this 
function, the budget resolution provides a lump sum for 
discretionary spending to the Appropriations Committee, which 
makes allocations to its subcommittees based on its priorities. 
Therefore, the aggregate funding levels in this function may 
increase or decrease depending on how committees determine the 
savings.
                FUNCTION 750: ADMINISTRATION OF JUSTICE

                              ----------                              



                                     FUNCTION 750: ADMINISTRATION OF JUSTICE
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       38.5       37.3       37.7       37.6       38.0       38.9      400.5
    Outlays........................       37.7       40.9       39.0       38.0       37.9       38.6      404.2
Discretionary Spending:
    Budget Authority...............       36.3       33.3       35.6       36.4       37.2       38.3      390.2
    Outlays........................       35.5       37.7       36.5       36.6       37.2       38.1      394.8
Mandatory Spending:
    Budget Authority...............        2.3        4.0        2.1        1.2        0.7        0.6       10.3
    Outlays........................        2.2        3.2        2.5        1.4        0.6        0.5        9.4
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    Function 750 supports the majority of Federal justice and 
law enforcement programs and activities. This includes funding 
for the Department of Justice [DOJ], much of the newly formed 
Department of Homeland Security [DHS], as well as the financial 
law enforcement activities of the Department of the Treasury, 
Federal courts and prisons, and criminal justice assistance to 
State and local governments.
    Over the period 1998-2003, BA in the function has increased 
an average of 8.2 percent. This percent increase largely 
reflects the Federal Government's initial response to the 
attacks of September 11, 2001, and its continued commitment to 
homeland security and fighting terrorism. (Figures for fiscal 
year 2003 include $1.5 billion for costs related to election 
reform grants for that same fiscal year. Additional funding for 
election reform grants will appear in Function 800 beginning in 
fiscal year 2004).

                Summary of Committee-Reported Resolution

    The resolution calls for $37.3 billion in BA and $40.9 
billion in outlays in fiscal year 2004. The function totals are 
$189.4 billion in BA and $194.4 billion in outlays over 5 
years; and $400.5 billion in BA and $404.2 billion in outlays 
over 10 years.
    For fiscal year 2004 discretionary spending, the resolution 
calls for $33.3 billion in BA and $37.7 billion in outlays. It 
calls for $180.8 billion in BA and $186.2 billion in outlays 
over 5 years, and $390.2 billion in BA and $394.8 billion in 
outlays over 10 years.
    Mandatory spending in this function is $4 billion in BA and 
$3.2 billion in outlays in fiscal year 2004; $8.6 billion in BA 
and $8.2 billion in outlays over 5 years; and $10.3 billion in 
BA and $9.4 billion in outlays over 10 years. Over the 2004-
2008 period, mandatory spending declines by $3.4 billion; and 
over the 2004-2013 period by $3.8 billion. The significant 
decline in mandatory spending can primarily be attributed to 
the depletion of the September 11 Victim Compensation Fund by 
fiscal year 2007.

                    DEPARTMENT OF HOMELAND SECURITY

    A portion of funding in this function goes toward 
activities of the new Department of Homeland Security. Please 
see the separate section on the Department in this report.

                         DEPARTMENT OF JUSTICE

Discretionary spending

    The resolution provides for $18.7 billion in discretionary 
funding for the Department of Justice [DOJ], and thus allows 
for the hiring of 2,170 new employees. The resolution further 
assumes additional resources will go toward the traditional 
crime fighting mission of the Department.
    Along with increased support for FBI-led interagency task 
forces intended to dismantle terrorist networks, the resolution 
also assumes funding for a number of other initiatives intended 
to quickly respond to any potential terrorist activity. These 
initiatives include: $28 million for new agents and other staff 
specifically responsible for investigating terrorist acts; $60 
million for cyber crime investigations, including attacks 
against the nation's critical infrastructure; $24 million for 
FBI response units, such as aviation support, crisis response 
and hostage rescue/SWAT teams; $37 million to support the FBI's 
improved personnel, facility, and information security; $23 
million for additional maximum security prison space to house 
terrorist inmates; $2 million to assist the U.S. Attorneys in 
counterterrorism prosecutions; and $2.5 million to increase 
training for State and local law enforcement on the 
investigation and prosecution of terrorist incidents.
    The resolution assumes $4.2 billion for the Federal Bureau 
of Investigation [FBI], or a $397 million increase, to hire 
some 1,911 new personnel, including 811 new intelligence 
analysts and surveillance personnel.
    The resolution assumes $1.6 billion for the Drug 
Enforcement Administration [DEA]. The resolution also assumes 
the consolidation of the Treasury, Coast Guard, and Justice 
Organized Crime Drug Enforcement Task Forces within the DOJ.
    Through the enactment of the Homeland Security Act of 2002 
[HSA], all of the enforcement actions of the Bureau of Alcohol, 
Tobacco and Firearms are being merged into DOJ, leaving only 
the revenue collection arm in the Treasury Department. 
Consistent with HSA, the resolution assumes $10 million for the 
national Explosives Licensing Center, which is responsible for 
reviewing and acting on applications for all Federal explosives 
licenses and permits. For fiscal year 2004, the resolution 
assumes $852 million for BATFE.
    The resolution assumes an additional $25 million for DOJ to 
expand their investigative and prosecutorial capacity to 
address corporate fraud.
    The resolution assumes $190 million for forensic DNA 
programs, including $177 to assist State and local crime labs 
clear their backlog of unanalyzed DNA samples and make 
technology improvements. Additional funding of $13 million can 
also be invested in the FBI's national DNA database.
    The resolution assumes continued funding for Community 
Oriented Policing Services [COPS]. The resolution assumes $164 
million for the continuation of the COPS grants program but, 
acknowledging the completion of the original program mission to 
hire or redeploy 100,000 police officers by the year 2000 and 
the inconclusiveness of the program's impact on crime, the 
resolution assumes no additional funds for the COPS hiring 
grants. The resolution does, however, allow for officer hiring 
through the Justice Assistance Grant program funded around $600 
million in the resolution.
    The resolution assumes the merging of the Treasury 
Department's Treasury Forfeiture Fund into a single Asset 
Forfeiture Fund within the DOJ.

                       DEPARTMENT OF THE TREASURY

    The resolution supports Treasury Department anti-terrorism 
efforts. The Treasury Department plays a crucial role in 
fighting the war against terrorism by detecting, disrupting, 
dismantling and blocking terrorist financing operations. Since 
September 2001, the United States and our allies have blocked a 
total of $124 million of terrorist-related assets worldwide. 
The following Treasury agencies, funded in Function 750, are 
responsible for the success of these operations:

 The Office of Foreign Assets Control [OFAC] is the 
    directorate behind dismantling terrorist financing. OFAC 
    administers and enforces economic and trade sanctions based 
    on US foreign policy and national security goals against 
    targeted foreign countries, terrorists, international 
    narcotics traffickers, and those engaged in activities 
    related to the proliferation of weapons of mass 
    destruction. OFAC acts under Presidential wartime and 
    national emergency powers, as well as authority granted by 
    specific legislation, to impose controls on transactions 
    and freeze foreign assets under U.S. jurisdiction. Many of 
    the sanctions are based on United Nations and other 
    international mandates, are multilateral in scope, and 
    involve close cooperation with allied governments.

 As the primary tool in fighting the financial war 
    against terrorism, the Financial Crimes Enforcement Network 
    [FinCEN] has the unique role in linking the law enforcement 
    and intelligence communities with the financial industry to 
    root out illegal activities and schemes. The resolution 
    assumes $58 million for FinCEN to improve their information 
    sharing capabilities.

 The Criminal Investigation Division [CID] of the 
    Internal Revenue Service [IRS] is well suited for fighting 
    the financial war against terrorism. With their expertise 
    in gathering and analyzing complex financial information, 
    and applying the evidence to tax, money laundering, and 
    Bank Secrecy Act violations, IRS special agents are an 
    ideal resource for fighting the financial war on terrorism. 
    Assisting IRS special agents, including joint efforts with 
    other agencies, the resolution assumes $4.0 billion ($476 
    million specifically for Function 750 and strictly Federal 
    law enforcement activities) for them in fiscal year 2004.

                           OTHER ASSUMPTIONS

Mandatory spending

 Judgeships. The resolution assumes funding for the 
    mandatory costs associated with creating 62 new Federal 
    judgeships and extending five existing bankruptcy 
    judgeships. Additionally, the resolution assumes $10 
    million in fiscal year 2004 for a cost of living adjustment 
    [COLA] for Federal judges, which was recently made 
    mandatory with the enactment of H.R. 16, A Bill to 
    Authorize Salary Adjustment for Justices and Judges of the 
    United States for fiscal year 2003 (Public Law 108-6).

    These items are recommended for priority consideration in 
this function, within the overall framework of the across-the-
board percentage reduction assumed in the budget resolution. 
Notwithstanding the recommended level for Function 750, the 
budget resolution provides a lump sum for discretionary 
spending to the Appropriations Committee, which makes 
allocations to its subcommittees based on its priorities.
                    FUNCTION 800: GENERAL GOVERNMENT

                              ----------                              



                                        FUNCTION 800: GENERAL GOVERNMENT
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       18.2       19.8       20.0       19.7       20.0       19.8      206.1
    Outlays........................       18.1       19.6       20.2       19.7       19.7       19.6      203.5
Discretionary Spending:
    Budget Authority...............       15.7       17.3       17.6       17.4       17.8       18.3      189.4
    Outlays........................       15.6       16.9       17.9       17.5       17.6       17.9      186.6
Mandatory Spending:
    Budget Authority...............        2.5        2.5        2.4        2.3        2.2        1.5       16.6
    Outlays........................        2.5        2.7        2.3        2.2        2.1        1.6       16.9
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    The General Government function consists of the activities 
of the Legislative Branch; the Executive Office of the 
President; general tax collection and fiscal operations of the 
Department of Treasury (including the Internal Revenue Service 
[IRS]); the property and personnel costs of the General 
Services Administration and the Office of Personnel Management; 
general purpose fiscal assistance to States, localities, the 
District of Columbia, and U.S. territories; and other general 
Government activities. The IRS accounts for about half of the 
spending in this function
    The average growth rate over the past 5 years (1998-2003) 
was 2.6-percent. BA for Function 800 has grown from $15.957 
billion in 1998 to $18.178 billion in fiscal year 2003.

                Summary of Committee-Reported Resolution

    The resolution calls for $19.8 billion in BA and $19.6 
billion in outlays in fiscal year 2004, an increase of 8 
percent in BA compared with fiscal year 2003. The function 
totals are $99.16 billion in BA and $98.78 billion in outlays 
over 5 years, and $206.06 billion in BA and $203.517 billion in 
outlays over 10 years.
    For fiscal year 2004 discretionary spending, the resolution 
calls for $17.3 billion in BA and $16.9 billion in outlays. 
This is an increase of approximately $1.6 billion in BA and 
$1.4 billion in outlays over fiscal year 2003. The resolution 
calls for $88.374 billion in BA and $189.44 billion in outlays 
over 5 years, and $87.796 billion in BA and $186.618 billion in 
outlays over 10 years.
    Mandatory spending in this function is $2.5 billion in BA 
and $2.7 billion in outlays in fiscal year 2004; $10.8 billion 
in BA and $11.0 billion in outlays over 5 years; $15.62 billion 
in BA and $16.9 billion in outlays over 10 years.

                    Department of Homeland Security

    Both the Federal Computer Incident Response Center and 
Federal Protective Services (Function 800) are being 
transferred to the new Department of Homeland Security. Fiscal 
year 2004 funding for both will come from the transfer of $424 
million from the Federal Buildings Fund to the new Department.

                            Other Priorities


Discretionary spending

    The resolution accommodates $500 million for the newly 
created Election Assistance Commission. The funds would be 
issued to states in the form of grants to purchase modern 
voting equipment. In October of 2002, Congress enacted and the 
President signed Public Law 107-252, the Help America Vote Act 
of 2002, which would provide $2.8 billion over fiscal years 
2002 through 2006, mostly for grants to States and localities 
to improve voting technology and election administration. The 
law established the Election Assistance Commission to undertake 
activities to improve the administration of elections and set 
minimum standards for national elections.

Mandatory spending

    The budget resolution assumes the President's mandatory 
spending proposal to pay financial institutions for their 
services in lieu of providing compensating balances, and 
provides $394 million in BA for fiscal year 2004 and $2.1 
billion over 5 years in Function 800 for this. (This proposal 
would reduce the deficit, as the interest saved on lower 
borrowing exceeds the outlays to pay for the services. The 
proposal would provide estimated saving of $637 million for the 
first 5 years and $1.2 billion over 10 years. The savings are 
reflected in Function 900).
    The resolution also assumes a proposal that reduces the 
Postal Service's contributions to the Civil Service Retirement 
and Disability Trust Fund to prevent the overfunding of 
accruing pension benefits for Postal Employees who are part of 
the old Civil Service Retirement System [CSRS]. Currently, the 
postal service makes a payment annually to the CSRDF to 
``forward fund'' future retiree annuities. Because of the 
higher than expected return on the Treasury securities in which 
the fund is invested, the Postal Service's contribution is soon 
to be higher than the actual costs of future benefits. The 
proposal lowers the amount that the Postal Service must pay to 
the CSRDF to prevent this overfunding. Most of the effect 
occurs in the off-budget portion of Function 950, but some 
effects also occur in Function 800, and in the off-budget 
portion of Function 370.
    The resolution also assumes a proposal for the continuation 
of fiscal assistance provided to the Compact of Free 
Association between the United States Government and the 
government of the Federated States of Micronesia [FSM] This 
would cost $19 million for fiscal year 2004 and $105 million 
over the next 5 years. This proposal is part of the ongoing 
negotiation regarding the Compact of Free Association between 
the U.S. Government and the FSM.

    These items are recommended for priority consideration in 
this function, within the overall framework of the across-the-
board percentage reduction assumed in the budget resolution. 
Notwithstanding the recommended level for this function, the 
budget resolution provides a lump sum for discretionary 
spending to the Appropriations Committee, which makes 
allocations to its subcommittees based on its priorities. 
Therefore, the aggregate funding levels in this function may 
increase or decrease depending on how committees determine the 
savings.
                       FUNCTION 900: NET INTEREST

                              ----------                              



                                           FUNCTION 900: NET INTEREST
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                       2003       2004       2005       2006       2007       2008     2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority..............      155.6      166.9      205.9      232.7      244.8      251.7     2,393.3
    Outlays.......................      155.6      166.9      205.9      232.7      244.8      251.7     2,393.3
    On Budget:
        Budget Authority..........      239.7      256.7      303.8      341.6      366.5      387.6     3,874.7
        Outlays...................      239.7      256.7      303.8      341.6      366.5      387.6     3,874.7
    Off Budget:
        Budget Authority..........      -84.1      -89.8      -97.9     -108.9     -121.8     -135.9    -1,481.3
        Outlays...................      -84.1      -89.8      -97.9     -108.9     -121.8     -135.9    -1,481.3
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    Net interest is the interest paid for the Federal 
Government's borrowing less the interest received by the 
Federal Government from trust fund investments and loans to the 
public. Function 900 is a mandatory payment, with no 
discretionary components.
    On-budget BA and outlays for net interest has gone from 
$287.8 billion in fiscal year 1998 to $239.7 billion in fiscal 
year 2003, a overall decrease of 3.6 percent per year.

                Summary of Committee-Reported Resolution

    On-Budget Interest. The resolution calls for $256.7 billion 
in BA and outlays in fiscal year 2004, an increase of 7.1 
percent compared with fiscal year 2003. The function totals are 
$1,656.2 billion in BA and outlays over 5 years, and $3,874.7 
billion in BA and outlays over 10 years.
    Off-Budget Interest. The resolution calls for -$89.8 
billion in BA and outlays in fiscal year 2004, a decrease of 
6.3 percent compared with fiscal year 2003. The function totals 
are -$554.2 billion in BA and outlays over 5 years, and 
-$1,481.3 billion in BA and outlays over 10 years.
    The resolution assumes a saving in interest payments of 
$0.3 billion in BA and outlays in fiscal year 2004 and $5.3 
billion in BA and outlays over 10 years. This saving arises 
from replacing Treasury's compensating balances by a permanent 
indefinite appropriation (see Function 800) that would result 
in lower borrowing by the Federal Government. There is a small 
reduction in the interest received from Federal Financing Bank 
in fiscal years 2004-2013. This is related to Postal Service 
pension proposal (see Function 950).
                        FUNCTION 920: ALLOWANCES

                              ----------                              



                                            FUNCTION 920: Allowances
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............  .........       -0.2  .........  .........  .........  .........       -0.2
    Outlays........................  .........       -0.2      (\1\)      (\1\)      (\1\)  .........       -0.2
Discretionary Spending:
    Budget Authority...............  .........       -0.2  .........  .........  .........  .........       -0.2
    Outlays........................  .........       -0.2      (\1\)      (\1\)      (\1\)  .........       -0.2
Off Budget:
    Budget Authority...............  .........  .........  .........  .........  .........  .........  .........
    Outlays........................  .........  .........  .........  .........  .........  .........
----------------------------------------------------------------------------------------------------------------
\1\ Less than -$10 million.

                            Function Summary

    The Allowances function is used for planning purposes to 
address the budgetary effects of proposals or assumptions that 
cross various other budget functions. Once such changes are 
enacted, the budgetary effects are distributed to the 
appropriate budget functions in past years.
    There is no spending history in Function 920 for the reason 
mentioned above.

                Summary of Committee-Reported Resolution

    The resolution calls for -$0.2 billion in BA and -$0.2 
billion in outlays in fiscal year 2004. The figure carries 
through the 10 years of the budget resolution.
    For fiscal year 2004 discretionary spending, the resolution 
calls for -$0.2 billion in BA and -$0.2 billion in outlays. 
There is an offset in Function 500 for those amounts. This 
offset carries through the 10 years of the budget resolution.
            FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS

                              ----------                              



                                 FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2003       2004       2005       2006       2007       2008    2004-2013
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............      -50.5      -52.9      -63.4      -66.0      -63.7      -66.6     -676.0
    Outlays........................      -50.5      -52.9      -63.4      -66.0      -63.7      -66.6     -676.0
    On Budget:
        Budget Authority...........      -41.1      -42.9      -52.6      -54.5      -51.5      -53.5     -539.4
        Outlays....................      -41.1      -42.9      -52.6      -54.5      -51.5      -53.5     -539.4
    Off Budget:
        Budget Authority...........       -9.4      -10.0      -10.8      -11.5      -12.2      -13.1     -136.5
        Outlays....................       -9.4      -10.0      -10.8      -11.5      -12.2      -13.1     -136.5
----------------------------------------------------------------------------------------------------------------

                            Function Summary

    Receipts recorded in this function are either 
intragovernmental (a payment from one Federal agency to 
another, such as agency payments to the retirement trust funds) 
or proprietary (a payment from the public for some kind of 
business transaction with the Government). The main types of 
receipts recorded in this function are: the payments Federal 
employers make to employee retirement trust funds; payments 
made by companies for the right to explore and produce oil and 
gas on the Outer Continental Shelf; and payments by those who 
bid for the right to buy or use public property or resources, 
such as the electromagnetic spectrum. These receipts are 
treated as mandatory negative spending.
    The average annual increase in on-budget receipts (or 
decline in spending) in BA and outlays over the past 5 years 
[1998-2003] for Function 950 is -2.1 percent. The average 
annual increase in off-budget receipts is -5.9 percent.

                Summary of Committee-Reported Resolution

    The resolution calls for -$52.9 billion in BA and outlays 
for this function in fiscal year 2004, reflecting a -$2.4 
billion, or -4.8 percent, increase in receipts (or decrease in 
spending) compared to the fiscal year 2003 budget. This amount 
is the baseline for offsetting receipts increased by the 
reduction ($2.7 billion) in the Postal Service's contribution 
to the Civil Service Retirement System for prior-year 
overpayments. Over the 2004-2008 period, BA and outlays are to 
further decrease by -$16.1 billion due to an average increase 
for receipts of -5.7 percent per year. Over 10 years, receipts 
are to total $676.0 billion in BA and outlays.
    On-Budget Receipts. The resolution calls for -$42.9 billion 
in BA and outlays in fiscal year 2004, a decrease of -4.4 
percent in BA compared with fiscal year 2003. The function 
totals are -$255.0 billion in BA and outlays over 5 years, and 
-$539.4 billion in BA and outlays over 10 years. Over the 2004-
2008 period, on-budget BA and outlays further decrease an 
average of -5.4 percent per year. The on-budget receipts in 
this function consist of six items at baseline levels: Outer 
Continental Shelf receipts; spectrum auction receipts; agency 
contributions to the Medicare Hospital Insurance trust fund; 
agency contributions to the military retirement fund; agency 
contributions to the DOD Retiree Health Care Fund; and other 
agency contributions to the civil and foreign service 
retirement and disability fund. The resolution does assume a 
proposal that reduces the Postal Service's contributions to the 
Civil Service Retirement and Disability Trust Fund to prevent 
the overfunding of accruing pension benefits for Postal 
Employees who are part of the old Civil Service Retirement 
System [CSRS]. Currently, the Postal Service makes a payment 
annually to the CSRDF to ``forward fund'' future retiree 
annuities. Because of the higher than expected return on the 
Treasury securities in which the fund is invested, the Postal 
Service's contribution is soon to be higher than the actual 
costs of future benefits. The proposal lowers the amount that 
the Postal Service must pay to the CSRDF to prevent this 
overfunding. The effect of this proposal occurs in this 
function, Function 800, and in the off-budget portion of 
Function 370.
    Off-Budget Receipts. The resolution assumes -$10.0 billion 
in BA and outlays in fiscal year 2004, a decrease of -6.6 
percent in BA compared with fiscal year 2003. The off-budget 
function totals -$57.6 billion in BA and outlays over 5 years, 
and -$136.5 billion in BA and outlays over 10 years. Over the 
2004-2008 period, BA and outlays further decrease an average of 
-6.8 percent per year. The off-budget receipts in this function 
are agencies' payments to the Social Security trust funds at 
baseline.
    The resolution does not assume the enactment of proposed 
legislation to permanently extend the Federal Communications 
Commission's authority (which expires in 2007) to auction 
spectrum. The resolution also does not assume an analog 
spectrum lease fee, or a new spectrum license user fee for non-
auctioned spectrum.


                 Summary Tables: Spending and Revenue*

                              ----------                              


Comparison of Total Budget Revenues for President's Request and 
        Committee Recommendations (Table 3)
---------------------------------------------------------------------------
    *Numbers may not add due to rounding.

Comparison of On Budget Revenues for President's Request and 
---------------------------------------------------------------------------
        Committee Recommendation (Table 4)

CBO Baseline Revenues by Source, in Billions of Dollars, Under 
        Past and Current Law (Table 5)

CBO Baseline Revenues By Source, Percent of GDP, Under Past and 
        Current Law (Table 6)

Comparison of Total Budget Revenues for CBO Baseline and 
        Committee Recommendation (Table 7)

Comparison of Total Budget Revenues, as Percent of GDP, for CBO 
        Baseline and Committee Recommendation
        (Table 8)

Tax Expenditure Estimates by Function (Table 9)

Budget Resolution Total Spending and Revenue (Table 10)

Budget Resolution Discretionary Spending (Table 11)

Budget Resolution Mandatory Spending (Table 12)

Budget Resolution Minus the President's Request: Total Spending 
        and Revenues (Table 13)

Budget Resolution Compared to 2003: Total Spending and Revenues 
        (Table 14)

Budget Resolution Compared to 2003: Percentage Change (Table 
        15)

Reconciliation (Table 16)



                          Revenue Comparisons

                              ----------                              


  TABLE 3.--COMPARISON OF TOTAL REVENUES FOR PRESIDENT'S REQUEST AND 
                        COMMITTEE RECOMMENDATION

                        [In billions of dollars]

                                                                  Amount
Fiscal Year:
    1992 Actual..................................................1,091.3
    1993 Actual..................................................1,154.4
    1994 Actual..................................................1,258.6
    1995 Actual..................................................1,351.8
    1996 Actual..................................................1,453.1
    1997 Actual..................................................1,579.3
    1998 Actual..................................................1,721.8
    1999 Actual..................................................1,827.5
    2000 Actual..................................................2,025.2
    2001 Actual..................................................1,991.2
    2002 Actual..................................................1,853.2
Fiscal Year 2003:
    President's Request (February 2003)..........................1,856.4
    Committee Level..............................................1,855.3
Fiscal Year 2004:
    President's Request (February 2003)..........................1,907.2
    Committee Level..............................................1,908.0
Fiscal Year 2005:
    President's Request (February 2003)..........................2,100.0
    Committee Level..............................................2,107.2
Fiscal Year 2006:
    President's Request (February 2003)..........................2,273.1
    Committee Level..............................................2,281.9
Fiscal Year 2007:
    President's Request (February 2003)..........................2,433.2
    Committee Level..............................................2,444.4
Fiscal Year 2008:
    President's Request (February 2003)..........................2,573.4
    Committee Level..............................................2,587.2
Fiscal Year 2009:
    President's Request (February 2003)..........................2,719.7
    Committee Level..............................................2,736.6
Fiscal Year 2010:
    President's Request (February 2003)..........................2,867.9
    Committee Level..............................................2,886.7
Fiscal Year 2011:
    President's Request (February 2003)..........................3,008.0
    Committee Level..............................................3,028.0
Fiscal Year 2012:
    President's Request (February 2003)..........................3,172.8
    Committee Level..............................................3,194.1
Fiscal Year 2013:
    President's Request (February 2003)..........................3,349.8
    Committee Level..............................................3,372.4
TABLE 4.--COMPARISON OF ON-BUDGET REVENUES FOR PRESIDENT'S REQUEST AND 
                        COMMITTEE RECOMMENDATION

                        [In billions of dollars]

                                                                  Amount
Fiscal Year:
    1992 Actual................................................... 788.9
    1993 Actual................................................... 842.5
    1994 Actual................................................... 923.6
    1995 Actual..................................................1,000.8
    1996 Actual..................................................1,085.6
    1997 Actual..................................................1,187.3
    1998 Actual..................................................1,306.0
    1999 Actual..................................................1,383.0
    2000 Actual..................................................1,544.6
    2001 Actual..................................................1,483.7
    2002 Actual..................................................1,337.9
Fiscal Year 2003:
    President's Request (February 2003)..........................1,324.8
    Committee Level..............................................1,323.7
Fiscal Year 2004:
    President's Request (February 2003)..........................1,349.3
    Committee Level..............................................1,350.1
Fiscal Year 2005:
    President's Request (February 2003)..........................1,512.1
    Committee Level..............................................1,519.3
Fiscal Year 2006:
    President's Request (February 2003)..........................1,654.0
    Committee Level..............................................1,662.7
Fiscal Year 2007:
    President's Request (February 2003)..........................1,781.9
    Committee Level..............................................1,793.1
Fiscal Year 2008:
    President's Request (February 2003)..........................1,888.9
    Committee Level..............................................1,902.7
Fiscal Year 2009:
    President's Request (February 2003)..........................2,000.5
    Committee Level..............................................2,017.4
Fiscal Year 2010:
    President's Request (February 2003)..........................2,112.0
    Committee Level..............................................2,130.9
Fiscal Year 2011:
    President's Request (February 2003)..........................2,215.8
    Committee Level..............................................2,235.8
Fiscal Year 2012:
    President's Request (February 2003)..........................2,343.2
    Committee Level..............................................2,364.4
Fiscal Year 2013:
    President's Request (February 2003)..........................2,480.0
    Committee Level..............................................2,502.6
 TABLE 5.--COMPARISON OF TOTAL REVENUES FOR CBO BASELINE AND COMMITTEE 
                             RECOMMENDATION

                        [In billions of dollars]

                                                                  Amount
Fiscal Year:
    1992 Actual..................................................1,091.3
    1993 Actual..................................................1,154.4
    1994 Actual..................................................1,258.6
    1995 Actual..................................................1,351.8
    1996 Actual..................................................1,453.1
    1997 Actual..................................................1,579.3
    1998 Actual..................................................1,721.8
    1999 Actual..................................................1,827.5
    2000 Actual..................................................2,025.2
    2001 Actual..................................................1,991.2
    2002 Actual..................................................1,853.2
Fiscal Year 2003:
    CBO Baseline (March 2003)....................................1,891.4
    Committee Level..............................................1,855.3
Fiscal Year 2004:
    CBO Baseline (March 2003)....................................2,024.3
    Committee Level..............................................1,908.0
Fiscal Year 2005:
    CBO Baseline (March 2003)....................................2,204.9
    Committee Level..............................................2,107.2
Fiscal Year 2006:
    CBO Baseline (March 2003)....................................2,359.8
    Committee Level..............................................2,281.9
Fiscal Year 2007:
    CBO Baseline (March 2003)....................................2,504.4
    Committee Level..............................................2,444.4
Fiscal Year 2008:
    CBO Baseline (March 2003)....................................2,647.5
    Committee Level..............................................2,587.2
Fiscal Year 2009:
    CBO Baseline (March 2003)....................................2,797.5
    Committee Level..............................................2,736.6
Fiscal Year 2010:
    CBO Baseline (March 2003)....................................2,948.9
    Committee Level..............................................2,886.7
Fiscal Year 2011:
    CBO Baseline (March 2003)....................................3,219.7
    Committee Level..............................................3,028.0
Fiscal Year 2012:
    CBO Baseline (March 2003)....................................3,479.4
    Committee Level..............................................3,194.1
Fiscal Year 2013:
    CBO Baseline (March 2003)....................................3,674.0
    Committee Level..............................................3,372.4
  TABLE 6.--COMPARISON OF TOTAL REVENUES, AS PERCENT OF GDP, FOR CBO 
                 BASELINE AND COMMITTEE RECOMMENDATION

                        [In billions of dollars]

                                                                 Percent
Fiscal Year:
    1992 Actual...................................................  17.5
    1993 Actual...................................................  17.6
    1994 Actual...................................................  18.1
    1995 Actual...................................................  18.5
    1996 Actual...................................................  18.9
    1997 Actual...................................................  19.3
    1998 Actual...................................................  19.9
    1999 Actual...................................................  20.0
    2000 Actual...................................................  20.8
    2001 Actual...................................................  19.9
    2002 Actual...................................................  17.9
Fiscal Year 2003:
    CBO Baseline (March 2003).....................................  17.6
    Committee Level...............................................  17.2
Fiscal Year 2004:
    CBO Baseline (March 2003).....................................  17.9
    Committee Level...............................................  16.9
Fiscal Year 2005:
    CBO Baseline (March 2003).....................................  18.5
    Committee Level...............................................  17.7
Fiscal Year 2006:
    CBO Baseline (March 2003).....................................  18.8
    Committee Level...............................................  18.1
Fiscal Year 2007:
    CBO Baseline (March 2003).....................................  18.9
    Committee Level...............................................  18.4
Fiscal Year 2008:
    CBO Baseline (March 2003).....................................  18.9
    Committee Level...............................................  18.5
Fiscal Year 2009:
    CBO Baseline (March 2003).....................................  19.0
    Committee Level...............................................  18.6
Fiscal Year 2010:
    CBO Baseline (March 2003).....................................  19.0
    Committee Level...............................................  18.6
Fiscal Year 2011:
    CBO Baseline (March 2003).....................................  19.8
    Committee Level...............................................  18.6
Fiscal Year 2012:
    CBO Baseline (March 2003).....................................  20.5
    Committee Level...............................................  18.8
Fiscal Year 2013:
    CBO Baseline (March 2003).....................................  20.6
    Committee Level...............................................  18.9

                        TABLE 7.--CBO BASELINE REVENUES BY SOURCE, IN BILLIONS OF DOLLARS
                              [Includes on- and off-budget revenues, fiscal years]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Projected
                               1950    1960     1970     1980     1990      2000      2002   -------------------
                                                                                                2003      2004
----------------------------------------------------------------------------------------------------------------
Individual Income Tax.......   15.8    40.7     90.4    244.1     466.9   1,004.5     858.3     868.9     923.5
Corporate Income Tax........   10.4    21.5     32.8     64.6      93.5     207.3     148.0     156.2     184.7
Social Insurance Tax and        4.3    14.7     44.4    157.8     380.0     652.9     700.8     725.4     765.7
 contributions..............
Excise Taxes................    7.6    11.7     15.7     24.3      35.3      68.9      67.0      68.3      71.1
Estate and Gift Taxes.......    0.7     1.6      3.6      6.4      11.5      29.0      26.5      21.5      24.0
Customs Duties..............    0.4     1.1      2.4      7.2      16.7      19.9      18.6      18.4      19.7
Miscellaneous Receipts......    0.2     1.2      3.4     12.7      28.0      42.8      33.9      32.7      35.5
                             -----------------------------------------------------------------------------------
      Total\1\..............   39.4    92.5    192.8    517.1   1,032.0   2,025.2   1,853.2   1,891.4   2,024.3
On-Budget Revenues..........  (37.3)  (81.9)  (159.3)  (403.9)   (750.3)  (1,544.6  (1,337.9  (1,359.8  (1,466.4
                                                                                 )         )         )         )
Off-Budget Revenues\2\......   (2.1)  (10.6)   (33.5)  (113.2)   (281.7)   (480.6)   (515.3)   (531.6)   (557.9)
----------------------------------------------------------------------------------------------------------------
\1\ Details may not sum to totals due to rounding.
\2\ Social Security (OASDI) revenues.

      

                          TABLE 8.--OMB BASELINE REVENUES BY SOURCE, AS PERCENT OF GDP
                              [Includes on- and off-budget revenues, fiscal years]
----------------------------------------------------------------------------------------------------------------
                                                                                                     Projected
                                           1950    1960    1970    1980    1990    2000    2002  ---------------
                                                                                                   2003    2004
----------------------------------------------------------------------------------------------------------------
Individual Income Tax...................    5.8     7.8     8.9     8.9     8.1    10.3     8.3     8.1     8.2
Corporate Income Tax....................    3.8     4.1     3.2     2.4     1.6     2.1     1.4     1.5     1.6
Social Insurance Tax and contributions..    1.6     2.8     4.4     5.8     6.6     6.7     6.8     6.7     6.8
Excise Taxes............................    2.8     2.3     1.6     0.9     0.6     0.7     0.6     0.6     0.6
Estate and Gift Taxes...................    0.3     0.3     0.4     0.2     0.2     0.3     0.3     0.2     0.2
Customs Duties..........................    0.1     0.2     0.2     0.3     0.3     0.2     0.2     0.2     0.2
Miscellaneous Receipts..................    0.1     0.2     0.3     0.5     0.5     0.4     0.3     0.3     0.3
                                         -----------------------------------------------------------------------
      Total\1\..........................   14.4    17.8    19.0    18.9    18.0    20.8    17.9    17.6    17.9
On-Budget Revenues......................  (13.7)  (15.8)  (15.7)  (14.8)  (13.1)  (15.9)  (12.9)  (12.6)  (13.0)
Off-Budget Revenues\2\..................   (0.8)   (2.1)   (3.3)   (4.1)   (4.9)   (4.9)   (5.0)   (4.9)   (4.9)
----------------------------------------------------------------------------------------------------------------
\1\ Details may not sum to totals due to rounding.
\2\ Social Security (OASDI) revenues.


                                     Table 9.--Tax Expenditure Estimates By Budget Function, Fiscal Years 2003-2007
                                                                  [Billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Corporations                                 Individuals
                      Function                      ------------------------------------------------------------------------------------------   Total
                                                       2003     2004     2005     2006     2007     2003     2004     2005     2006     2007    2003-07
--------------------------------------------------------------------------------------------------------------------------------------------------------
National Defense
  Exclusion of benefits and allowances to Armed      .......  .......  .......  .......  .......      2.5      2.6      2.6      2.7      2.8       13.1
   Forces personnel................................
  Exclusion of military disability benefits........  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1        0.6
International Affairs
  Exclusion of income earned abroad by U.S.          .......  .......  .......  .......  .......      3.0      3.2      3.4      3.6      3.8       17.0
   citizens........................................
  Exclusion of certain allowances for Federal        .......  .......  .......  .......  .......      0.4      0.4      0.5      0.5      0.6        2.4
   employees abroad................................
  Exclusion of extraterritorial income.............      4.8      5.0      5.3      5.7      6.0  .......  .......  .......  .......  .......       26.8
  Deferral of active income of controlled foreign        4.4      4.6      4.8      5.0      5.2  .......  .......  .......  .......  .......       24.0
   corporations....................................
  Inventory property sales source rule exception...      5.1      5.4      5.7      6.0      6.3  .......  .......  .......  .......  .......       28.5
  Deferral of certain financing income.............      1.7      1.9      2.1      2.3      1.7  .......  .......  .......  .......  .......        9.7
General Science, Space, and Technology
  Tax credit for qualified research expenditures...      5.1      4.5      2.7      1.4      0.7    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       14.7
  Expensing of research and experimental                 3.8      4.7      5.4      5.9      6.2    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       26.6
   expenditures....................................
Energy
  Expensing of exploration and development costs:
    Oil and gas....................................      0.6      0.4      0.3      0.4      0.5    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        2.2
    Other fuels....................................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.2
  Excess of percentage over cost depletion:
    Oil and gas....................................      0.4      0.4      0.4      0.5      0.5    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        2.2
    Other fuels....................................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
  Tax credit for enhanced oil recovery costs.......      0.2      0.2      0.2      0.2      0.2      0.1      0.1      0.1      0.1      0.1        1.5
  Tax credit for production of non-conventional          0.8      0.5      0.5      0.5      0.6      0.2      0.1      0.1      0.1      0.1        3.6
   fuels...........................................
  Tax credits for alcohol fuels \2\................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)  .......  .......  .......  .......  .......        0.1
  Exclusion of interest on State and local             (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.1      0.1      0.1      0.1      0.1        0.8
   government industrial development bonds for
   energy production facilities....................
  Exclusion of energy conservation subsidies         .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
   provided by public utilities....................
  Tax credit for investments in solar and              (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
   geothermal energy facilities....................
  Tax credit for electricity production from wind,     (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.3
   biomass, and poultry waste......................
Natural Resources and Environment
  Expensing of exploration and development costs,      (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.3
   nonfuel minerals................................
  Excess of percentage over cost depletion, nonfuel      0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1        0.8
   minerals........................................
  Expensing of multiperiod timber-growing costs....      0.2      0.2      0.2      0.2      0.2    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.9
  Exclusion of interest on State and local               0.2      0.2      0.2      0.2      0.2      0.4      0.4      0.4      0.4      0.5        3.1
   governments sewage, water, and hazardous waste
   facilities bonds................................
  Special rules for mining reclamation reserves....    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.2
  Special tax rate for nuclear decommissioning           0.3      0.3      0.3      0.3      0.3  .......  .......  .......  .......  .......        1.5
   reserve fund....................................
  Exclusion of contributions in aid of construction    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)  .......  .......  .......  .......  .......        0.1
   for water and sewer utilities...................
Agriculture
  Expensing of soil and water conservation             (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.2
   expenditures....................................
  Expensing of fertilizer and soil conditioner         (\3\)    (\1\)    (\1\)    (\1\)    (\1\)    (\3\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
   costs...........................................
  Expensing of the costs of raising dairy and          (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.1    (\1\)    (\1\)    (\1\)    (\1\)        0.2
   breeding cattle.................................
  Exclusion of cost-sharing payments...............    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
  Exclusion of cancellation of indebtedness income   .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1        0.4
   of farmers......................................
  Cash accounting for agriculture..................    (\1\)      0.1      0.1      0.1      0.1      0.4      0.6      0.6      0.6      0.6        3.2
  Income averaging for farmers.....................  .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
  Five-year carryback period for net operating         (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.2
   losses atrributable to farming..................
Commerce and Housing
  Financial institutions:
    Exemption of credit union income...............      1.1      1.1      1.2      1.3      1.3  .......  .......  .......  .......  .......        6.0
  Insurance companies:
    Exclusion of investment income on life               1.4      1.4      1.4      1.5      1.5     24.0     24.6     25.2     25.8     26.5      133.2
     insurance and annuity contracts...............
    Small life insurance company taxable income          0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......        0.5
     adjustment....................................
    Special treatment of life insurance company          1.3      1.3      1.3      1.4      1.4  .......  .......  .......  .......  .......        6.8
     reserves......................................
    Deduction of unpaid property loss reserves for       1.4      1.4      1.4      1.5      1.5  .......  .......  .......  .......  .......        7.2
     property and casualty insurance companies.....
    Special deduction for Blue Cross and Blue            0.3      0.3      0.3      0.3      0.3  .......  .......  .......  .......  .......        1.5
     Shield companies..............................
  Housing:
    Deduction for mortgage interest on owner-        .......  .......  .......  .......  .......     69.9     72.6     76.5     80.5     85.5      384.9
     occupied residences...........................
    Deduction for property taxes on owner-occupied   .......  .......  .......  .......  .......     22.1     21.7     19.0     15.4     14.0       92.1
     residences....................................
    Exclusion of capital gains on sales of           .......  .......  .......  .......  .......     17.8     17.9     18.2     18.4     18.7       91.0
     principal residences..........................
    Exclusion of interest on State and local             0.3      0.3      0.3      0.3      0.3      0.7      0.8      0.8      0.8      0.8        5.3
     government bonds for owner-occupied housing...
    Exclusion of interest on State and local             0.1      0.1      0.1      0.1      0.1      0.2      0.2      0.2      0.2      0.2        1.1
     government bonds for rental housing...........
    Depreciation of rental housing in excess of          0.3      0.3      0.4      0.4      0.5      2.8      3.1      3.4      3.8      4.4       19.4
     alternative depreciation system...............
    Tax credit for low-income housing..............      2.9      3.0      3.2      3.3      3.4      1.2      1.3      1.4      1.4      1.5       22.5
    Tax credit for first-time homebuyers in the      .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      (\1\)
     District of Columbia..........................
    Tax credit for rehabilitation of historic            0.4      0.4      0.4      0.4      0.4      0.1      0.1      0.1      0.1      0.1        2.5
     structures....................................
  Other business and commerce:
    Reduced rates of tax on long-term capital gains  .......  .......  .......  .......  .......     55.3     54.7     52.8     53.2     48.6      264.6
    Exclusion of capital gains at death............  .......  .......  .......  .......  .......     38.1     41.1     44.3     47.6     49.1      220.2
    Carryover basis of capital gains on gifts......  .......  .......  .......  .......  .......      4.5      4.7      5.0      5.3      5.6       25.1
    Deferral of gain on non-dealer installment           0.7      0.7      0.7      0.7      0.7      0.5      0.5      0.5      0.5      0.5        6.0
     sales.........................................
    Deferral of gain on like-kind exchanges........      1.4      1.4      1.5      1.5      1.5      0.5      0.5      0.5      0.5      0.5        9.8
    Deferral of gain on involuntary conversions      .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
     resulting from Presidentially declared
     disasters.....................................
    Depreciation of buildings other than rental          1.5      1.4      1.1      0.9      1.2      0.9      0.9      0.6      0.2      0.3        9.1
     housing in excess of alternative depreciation
     system........................................
    Depreciation of equipment in excess of              39.3     36.2     19.1     10.3     14.4     10.5      9.2      4.2      1.6      2.7      147.5
     alternative depreciation system...............
    Expensing of depreciable business property.....     -0.1    (\3\)      0.1      0.2      0.2     -0.6     -0.2      0.5      0.8      0.7        1.5
    Amortization of business startup costs.........    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.6      0.6      0.6      0.6      0.6        3.0
    Reduced rates on first $10,000,000 of corporate      4.4      4.6      4.8      4.9      5.1  .......  .......  .......  .......  .......       23.7
     taxable income................................
    Permanent exemption from imputed interest rules    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.3      0.3      0.3      0.3      0.3        1.5
    Expensing of magazine circulation expenditures.    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.2
    Special rules for magazine, paperback book, and    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
     record returns................................
    Completed contract rules.......................      0.2      0.2      0.2      0.2      0.2    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        1.2
    Cash accounting, other than agriculture........    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.5      0.5      0.5      0.5      0.5        2.5
    Exclusion of interest on State and local             0.1      0.1      0.1      0.1      0.1      0.3      0.3      0.3      0.3      0.3        2.0
     government small-issue industrial development
     bonds.........................................
    Exception from net operating loss limitations        0.8      0.6      0.6      0.6      0.6  .......  .......  .......  .......  .......        3.2
     for corporations in bankruptcy proceedings....
    Tax credit for employer-paid FICA taxes on tips      0.1      0.1      0.1      0.2      0.2      0.2      0.3      0.3      0.3      0.3        1.9
Transportation
  Deferral of tax on capital construction funds of       0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......        0.5
   shipping companies..............................
  Exclusion of employer-paid transportation          .......  .......  .......  .......  .......      3.7      3.8      3.8      3.9      3.9       19.1
   benefits........................................
  Exclusion of interest on State and local             (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.1      0.1      0.1      0.1      0.1        0.5
   government bonds for high-speed rail............
Community and Regional Development
  New York City Liberty Zone tax incentives........      0.4      0.2      0.5      0.7      0.6      0.4      0.3      0.4      0.5      0.3        4.4
  Empowerment zone tax incentives..................      0.3      0.3      0.3      0.4      0.4      0.3      0.3      0.4      0.4      0.4        3.5
  Renewal community tax incentives.................      0.1      0.1      0.2      0.2      0.3      0.3      0.3      0.4      0.4      0.4        2.7
  New markets tax credit...........................    (\1\)      0.1      0.2      0.2      0.3      0.1      0.1      0.2      0.3      0.4        2.0
  District of Columbia tax incentives..............    (\1\)      0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1        0.7
  Indian reservation tax incentives................      0.4      0.5      0.3     -0.1     -0.3      0.2      0.2      0.2    (\3\)     -0.1        1.3
  Expensing of environmental remediation costs           0.1    (\1\)    (\3\)    (\3\)    (\3\)      0.1      0.1    (\3\)    (\3\)    (\3\)        0.3
   (``Brownfields'')...............................
  Tax credit for rehabilitation of structures,         (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
   other than historic structures..................
  Exclusion of interest on State and local               0.2      0.2      0.2      0.2      0.2      0.5      0.6      0.6      0.6      0.6        3.9
   government bonds for private airports, docks,
   and mass-commuting facilities...................
Education, Training, Employment, and Social
 Services
  Education and training:
    Tax credits for tuition for post-secondary       .......  .......  .......  .......  .......      4.3      4.3      4.3      4.4      4.4       21.7
     education.....................................
    Deduction for interest on student loans........  .......  .......  .......  .......  .......      0.6      0.7      0.8      0.8      0.9        3.8
    Deduction for higher education expenses........  .......  .......  .......  .......  .......      2.1      2.7      2.9      0.7  .......        8.4
    Exclusion of earnings of trust accounts for      .......  .......  .......  .......  .......      0.4      0.5      0.6      0.7      0.8        3.0
     higher education (``education IRAs'').........
    Exclusion of interest on educational savings     .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
     bonds.........................................
    Deferral of tax on earnings of qualified State   .......  .......  .......  .......  .......      0.2      0.2      0.3      0.3      0.4        1.4
     tuition programs..............................
    Exclusion of scholarship and fellowship income.  .......  .......  .......  .......  .......      1.4      1.5      1.5      1.6      1.6        7.6
    Exclusion of employer-provided education         .......  .......  .......  .......  .......      0.7      0.8      0.8      0.9      0.9        4.1
     assistance benefits...........................
    Parental personal exemption for students age 19  .......  .......  .......  .......  .......      1.5      1.4      1.2      0.7      0.5        5.3
     to 23.........................................
    Exclusion of interest on State and local             0.1      0.1      0.1      0.1      0.1      0.3      0.3      0.3      0.3      0.3        1.8
     government student loan bonds.................
    Exclusion of interest on State and local             0.3      0.3      0.3      0.3      0.3      0.7      0.7      0.8      0.8      0.8        5.3
     government bonds for private nonprofit
     educational facilities 4......................
    Tax credit for holders of qualified zone           (\1\)      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......        0.4
     academy bonds.................................
    Deduction for charitable contributions to            1.0      1.1      1.1      1.1      1.2      6.2      6.4      6.6      6.8      7.0       38.3
     educational institutions......................
    Above the line deduction for teacher classroom   .......  .......  .......  .......  .......      0.2      0.1  .......  .......  .......        0.3
     expenses......................................
  Employment:
    Exclusion of employee meals and lodging (other   .......  .......  .......  .......  .......      0.9      0.9      0.9      0.9      0.9        4.5
     than military)................................
    Exclusion of benefits provided under cafeteria   .......  .......  .......  .......  .......     14.0     14.8     16.0     16.8     18.0       79.5
     plans 5.......................................
    Exclusion of housing allowances for ministers..  .......  .......  .......  .......  .......      0.4      0.5      0.5      0.5      0.5        2.4
    Exclusion of miscellaneous fringe benefits.....  .......  .......  .......  .......  .......      6.0      6.2      6.4      6.7      7.0       32.3
    Exclusion of employee awards...................  .......  .......  .......  .......  .......      0.1      0.1      0.2      0.2      0.2        0.8
    Exclusion of income earned by voluntary          .......  .......  .......  .......  .......      3.0      3.2      3.4      3.5      3.7       16.8
     employees' beneficiary associations...........
    Special tax provisions for employee stock            0.8      0.9      0.9      0.9      0.9      0.2      0.2      0.3      0.3      0.3        5.6
     ownership plans (``ESOPs'')...................
    Work opportunity tax credit....................      0.3      0.2      0.1    (\1\)    (\1\)      0.1    (\1\)    (\1\)    (\1\)    (\1\)        0.8
    Welfare-to-work tax credit.....................      0.1      0.1    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.3
    Deferral of taxation on spread on acquisition    .......  .......  .......  .......  .......      0.3      0.4      0.4      0.5      0.5        2.1
     of stock under incentive stock option plans
     and employee stock purchase plans \6\.........
  Social services:
    Tax credit for children under age 17 \7\.......  .......  .......  .......  .......  .......     27.1     26.9     30.1     31.7     31.0      146.8
    Tax credit for child and dependent care          .......  .......  .......  .......  .......      3.2      3.0      2.5      2.0      1.9       12.6
     expenses......................................
    Exclusion of employer-provided child care \8\..  .......  .......  .......  .......  .......      0.8      0.8      0.9      0.9      1.0        4.4
    Tax credit for employer-provided child care....      0.1      0.1      0.1      0.1      0.2    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.7
    Exclusion of certain foster care payments......  .......  .......  .......  .......  .......      0.6      0.6      0.7      0.7      0.8        3.4
    Adoption credit and employee adoption benefits   .......  .......  .......  .......  .......      0.2      0.3      0.4      0.4      0.4        1.7
     exclusion.....................................
    Deduction for charitable contributions, other        1.7      1.8      1.9      1.9      2.0     32.5     33.5     34.5     35.6     36.7      182.0
     than for education and health.................
    Tax credit for disabled access expenditures....    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.1      0.1      0.1      0.1      0.1        0.4
Health
  Exclusion of employer contributions for health     .......  .......  .......  .......  .......     79.6     85.1     91.8     98.7    106.6      461.8
   care, health insurance premiums, and long-term
   care insurance premiums \9\.....................
  Exclusion of medical care and CHAMPUS/TRICARE      .......  .......  .......  .......  .......      1.8      1.8      1.8      1.9      1.9        9.1
   medical insurance for military dependents,
   retirees, and retiree dependents................
  Deduction for health insurance premiums and long-  .......  .......  .......  .......  .......      2.5      2.9      3.1      3.2      3.4       15.1
   term care insurance premiums by the self-
   employed........................................
  Deduction for medical expenses and long-term care  .......  .......  .......  .......  .......      5.9      6.1      6.3      6.5      6.9       31.6
   expenses........................................
  Exclusion of workers' compensation benefits        .......  .......  .......  .......  .......      3.8      3.9      4.0      4.1      4.1       20.0
   (medical benefits)..............................
  Medical savings accounts.........................  .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
  Exclusion of interest on State and local               0.4      0.4      0.4      0.4      0.4      1.1      1.1      1.1      1.1      1.1        7.7
   government bonds for private nonprofit hospital
   facilities......................................
  Deduction for charitable contributions to health       0.9      0.9      1.0      1.0      1.0      4.2      4.4      4.5      4.6      4.8       27.4
   organizations...................................
  Tax credit for orphan drug research..............      0.2      0.2      0.2      0.2      0.2  .......  .......  .......  .......  .......        1.0
  Tax credit for purchase of health insurance by     .......  .......  .......  .......  .......      0.3      0.4      0.5      0.5      0.5        2.1
   certain displaced persons.......................
Medicare
  Exclusion of untaxed Medicare benefits:
    Hospital insurance.............................  .......  .......  .......  .......  .......     13.9     15.1     16.3     17.5     18.7       81.5
    Supplementary medical insurance................  .......  .......  .......  .......  .......      9.1      9.7     10.4     11.3     12.4       52.9
Income Security
  Exclusion of workers' compensation benefits        .......  .......  .......  .......  .......      4.7      4.8      4.9      5.0      5.3       24.7
   (disability and survivors payments).............
  Exclusion of damages on account of personal        .......  .......  .......  .......  .......      1.4      1.4      1.4      1.4      1.7        7.1
   physical injuries or physical sickness..........
  Exclusion of special benefits for disabled coal    .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1        0.3
   miners..........................................
  Exclusion of cash public assistance benefits.....  .......  .......  .......  .......  .......      3.0      3.2      3.3      3.5      3.6       16.6
  Net exclusion of pension contributions and
   earnings:
    Employer plans.................................  .......  .......  .......  .......  .......     83.5     94.7     99.7    104.9    110.3      493.1
    Individual retirement plans....................  .......  .......  .......  .......  .......     10.4     13.7     16.1     17.8     19.3       77.3
    Keogh plans....................................  .......  .......  .......  .......  .......      5.7      5.8      6.0      6.4      6.7       30.5
  Tax credit for certain individuals for elective    .......  .......  .......  .......  .......      1.6      1.5      1.4      1.3      0.4        6.3
   deferrals and IRA contributions.................
  Tax credit for new retirement plan expenses of       (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
   small businesses................................
  Exclusion of other employee benefits:
    Premiums on group term life insurance..........  .......  .......  .......  .......  .......      2.4      2.5      2.6      2.7      2.7       12.6
    Premiums on accident and disability insurance..  .......  .......  .......  .......  .......      2.3      2.4      2.5      2.7      2.8       12.7
  Additional standard deduction for the blind and    .......  .......  .......  .......  .......      2.0      2.1      2.2      2.3      2.2       10.7
   the elderly.....................................
  Tax credit for the elderly and disabled..........  .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
  Deduction for casualty and theft losses..........  .......  .......  .......  .......  .......      0.2      0.2      0.2      0.2      0.2        1.1
  Earned income credit (``EIC'') \7\...............  .......  .......  .......  .......  .......     34.1     34.6     35.9     36.8     37.3      178.8
Social Security and Railroad Retirement
  Exclusion of untaxed Social Security and railroad  .......  .......  .......  .......  .......     21.6     22.2     22.8     23.4     24.2      114.2
   retirement benefits.............................
Veterans' Benefits and Services
  Exclusion of veterans' disability compensation...  .......  .......  .......  .......  .......      2.6      2.7      2.8      2.8      2.8       13.7
  Exclusion of veterans' pensions..................  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1        0.6
  Exclusion of veterans' readjustment benefits.....  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1        0.6
  Exclusion of interest on State and local             (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.2
   government bonds for veterans' housing..........
General Purpose Fiscal Assistance
  Exclusion of interest on public purpose State and      6.6      6.7      6.8      6.9      7.0     16.9     17.3     17.6     17.9     18.2      121.6
   local government debt...........................
  Deduction of nonbusiness State and local           .......  .......  .......  .......  .......     50.9     50.4     46.7     39.0     36.4      223.5
   government income and personal property taxes...
  Tax credit for Puerto Rico and possession income,      1.8      1.6      1.4      0.4  .......  .......  .......  .......  .......  .......        5.2
   and Puerto Rico economic activity...............
Interest
  Deferral of interest on savings bonds............  .......  .......  .......  .......  .......      1.6      1.6      1.6      1.6      1.6        8.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Positive tax expenditure of less than $50 million.
\2\ In addition, the exemption from excise tax for alcohol fuels results in a reduction in excise tax receipts, net of income tax effect, of $0.7
  billion in fiscal year 2003, and $0.8 billion per year in fiscal years 2004 through 2007.
\3\ Negative tax expenditure of less than $50 million.
\4\ Estimate includes tax-exempt bonds for qualified educational facilities.
\5\ Estimate includes amounts of employer-provided health insurance purchased through cafeteria plans and employer-provided child care  purchased
  through dependent care flexible spending accounts. These amounts are also included in other line items in this table.
\6\ Tax expenditure estimate does not include offsetting denial of corporate deduction for qualified stock option compensation.
\7\ The amount of refundable child tax credit and earned income tax credit used to offset taxes other than income tax or paid out as refunds is: $38.1
  billion in 2003, $37.9 billion in 2004, $38.5 billion in 2005, $41.7 billion in 2006, and $42.3 billion in 2007.
\8\ Estimate includes employer-provided child care purchased through dependent care flexible spending accounts.
\9\ Estimate includes employer-provided health insurance purchased through cafeteria plans.

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

Source: Joint Committee on Taxation.


                                                            TABLE 10.--FISCAL YEAR 2004 BUDGET RESOLUTION TOTAL SPENDING AND REVENUES
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013       2004-2008     2004-2013
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
    BA..........................   2,158.555   2,220.255   2,341.999   2,473.605   2,583.883   2,696.443   2,806.566   2,913.038   3,046.805   3,171.268   3,321.334    12,316.185    27,575.196
    OT..........................   2,143.410   2,232.185   2,333.122   2,442.443   2,544.123   2,656.422   2,771.095   2,880.886   3,020.867   3,130.903   3,288.991    12,208.295    27,301.037
    On-Budget:
        BA......................   1,790.046   1,833.379   1,945.086   2,066.138   2,163.834   2,262.530   2,356.013   2,444.106   2,559.262   2,660.496   2,784.115    10,270.967    23,074.959
        OT......................   1,776.895   1,847.707   1,939.000   2,038.048   2,127.443   2,226.263   2,324.692   2,416.407   2,538.165   2,625.454   2,757.585    10,178.461    22,840.764
    Off-Budget:
        BA......................     368.509     386.876     396.913     407.467     420.049     433.913     450.553     468.932     487.543     510.772     537.219     2,045.218     4,500.237
        OT......................     366.515     384.478     394.122     404.395     416.680     430.159     446.403     464.479     482.702     505.449     531.406     2,029.834     4,460.273
Revenues:
    Total.......................   1,855.336   1,908.024   2,107.162   2,281.891   2,444.370   2,587.249   2,736.597   2,886.701   3,028.028   3,194.074   3,372.405    11,328.696    26,546.501
    On-budget...................   1,323.729   1,350.138   1,519.267   1,662.729   1,793.142   1,902.740   2,017.385   2,130.867   2,235.796   2,364.426   2,502.635     8,228.016    19,479.125
    Off-budget..................     531.607     557.886     587.895     619.162     651.228     684.509     719.212     755.834     792.232     829.648     869.770     3,100.680     7,067.376
Surplus/Deficit (-):
    Total.......................    -288.074    -324.161    -225.960    -160.552     -99.753     -69.173     -34.498       5.815       7.161      63.171      83.414      -879.599      -754.536
    On-budget...................    -453.166    -497.569    -419.733    -375.319    -334.301    -323.523    -307.307    -285.540    -302.369    -261.028    -254.950    -1,950.445    -3,361.639
    Off-budget..................     165.092     173.408     193.773     214.767     234.548     254.350     272.809     291.355     309.530     324.199     338.364     1,070.846     2,607.103
Debt Held by the Public (end of        3,858       4,179       4,412       4,585       4,697       4,777       4,821       4,823       4,824       4,768       4,690            na            na
 year)..........................
Debt Subject to Limit (end of          6,687       7,264       7,790       8,290       8,753       9,210       9,651      10,076      10,521      10,931      11,336            na            na
 year)..........................

                                                                                           BY FUNCTION
National Defense (050):
    BA..........................     392.494     400.546     420.071     440.185     460.435     480.886     494.067     507.840     522.103     536.531     551.323     2,202.123     4,813.987
    OT..........................     386.229     400.916     414.237     426.011     438.656     462.861     480.650     497.348     516.338     523.884     543.541     2,142.681     4,704.442
International Affairs (150):
    BA..........................      22.506      24.747      28.626      31.082      32.262      33.107      33.759      34.445      35.294      36.128      36.985       149.824       326.435
    OT..........................      19.283      23.676      24.128      25.608      27.409      28.389      29.398      30.221      31.065      31.873      32.737       129.210       284.504
General Science, Space, and
 Technology (250):
    BA..........................      23.153      22.771      23.591      24.344      25.153      25.899      26.503      27.140      27.800      28.464      29.134       121.758       260.799
    OT..........................      21.556      22.348      23.082      23.690      24.425      25.127      25.799      26.435      27.079      27.735      28.393       118.672       254.113
Energy (270):
    BA..........................       2.074       2.583       2.707       2.609       2.431       2.988       2.977       3.085       3.182       3.289       3.402        13.318        29.253
    OT..........................       0.439       0.929       0.962       1.245       1.023       1.402       1.663       1.784       1.957       2.319       2.295         5.561        15.579
Natural Resources and
 Environment (300):
    BA..........................      30.816      29.237      30.250      30.940      31.448      32.224      33.454      34.421      35.427      36.343      37.240       154.099       330.984
    OT..........................      28.940      29.866      30.274      31.199      31.331      31.706      32.835      33.757      34.741      35.615      36.590       154.376       327.914
Agriculture (350):
    BA..........................      24.418      23.966      26.144      25.799      25.113      24.035      24.239      23.427      22.985      22.651      22.433       125.057       240.792
    OT..........................      23.365      23.356      25.194      24.987      24.415      23.523      24.066      23.496      23.002      22.627      22.388       121.475       237.054
Commerce and Housing Credit
 (370):
    BA..........................       5.212       7.201       8.133       5.667       5.995       5.096       4.988       4.608       4.424       4.256       4.053        32.092        54.421
    OT..........................       2.281       3.387       3.559       0.652       0.194      -1.177      -1.289      -1.921      -2.657      -3.163      -3.354         6.615        -5.769
    On-budget:
        BA......................       8.812       7.401       8.633       8.145       9.166       8.628       8.763       8.737       8.939       9.029       9.247        41.973        86.688
        OT......................       5.881       3.587       4.059       3.130       3.365       2.355       2.486       2.208       1.858       1.610       1.840        16.496        26.498
    Off-budget:
        BA......................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
        OT......................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
Transportation (400):
    BA..........................      64.091      65.416      65.785      66.691      67.693      68.647      69.825      71.016      72.723      74.432      76.218       334.232       698.446
    OT..........................      67.847      73.832      69.861      68.369      68.293      68.700      69.604      71.021      72.573      74.228      75.924       349.055       712.405
Community and Regional
 Development (450):
    BA..........................      12.251      14.137      14.355      14.647      14.968      15.350      15.701      16.075      16.467      16.857      17.255        73.457       155.812
    OT..........................      15.994      15.923      15.990      15.120      14.918      14.500      14.802      15.146      15.524      15.892      16.288        76.451       154.103
Education, Training, Employment
 and Social Services (500):
    BA..........................      86.169      84.744      84.376      86.663      88.640      90.799      92.377      93.915      95.812      97.615      99.516       435.222       914.457
    OT..........................      81.340      85.702      83.593      84.632      86.408      88.343      90.470      92.151      93.918      95.694      97.583       428.678       898.494
Health (550):
    BA..........................     221.878     235.033     248.561     265.324     284.054     303.513     323.793     345.221     370.172     394.838     423.165     1,336.485     3,193.674
    OT..........................     218.021     235.408     248.255     264.811     283.181     302.371     322.510     343.935     368.888     393.580     421.858     1,334.026     3,184.797
Medicare (570):
    BA..........................     248.586     261.298     275.475     312.447     332.020     352.392     372.165     392.052     420.691     453.915     490.497     1,533.632     3,662.952
    OT..........................     248.434     261.621     278.402     309.300     332.299     352.287     371.929     392.309     423.880     450.312     490.754     1,533.909     3,663.093
Income Security (600):
    BA..........................     326.588     315.939     326.452     332.440     337.235     345.904     354.493     362.278     376.326     379.667     393.564     1,657.970     3,524.298
    OT..........................     334.373     321.576     329.892     334.883     339.157     347.149     355.411     363.059     377.070     380.403     394.420     1,672.657     3,543.020
Social Security (650):
    BA..........................     478.882     501.089     521.493     546.791     575.122     606.191     641.237     679.459     720.651     766.311     816.362     2,750.686     6,374.706
    OT..........................     476.888     498.690     518.702     543.719     571.753     602.437     637.087     675.006     715.810     760.988     810.549     2,735.301     6,334.741
    On-budget:
        BA......................      13.255      14.223      15.330      16.451      17.975      19.827      21.982      24.357      28.235      31.450      34.481        83.806       224.311
        OT......................      13.255      14.222      15.330      16.451      17.975      19.827      21.982      24.357      28.235      31.450      34.481        83.805       224.310
    Off-budget:
        BA......................     465.627     486.866     506.163     530.340     557.147     586.364     619.255     655.102     692.416     734.861     781.881     2,666.880     6,150.395
        OT......................     463.633     484.468     503.372     527.268     553.778     582.610     615.105     650.649     687.575     729.538     776.068     2,651.496     6,110.431
Veterans Benefits and Services
 (700):
    BA..........................      57.597      60.710      65.827      63.976      62.320      65.655      66.888      68.158      72.646      69.805      74.452       318.488       670.437
    OT..........................      57.486      60.692      65.329      63.720      62.014      65.502      66.644      67.874      72.350      69.416      74.132       317.257       667.673
Administration of Justice (750):
    BA..........................      38.543      37.310      37.673      37.581      37.963      38.880      39.839      40.884      42.152      43.451      44.800       189.407       400.533
    OT..........................      37.712      40.895      39.003      38.026      37.859      38.633      39.662      40.696      41.847      43.124      44.464       194.416       404.209
General Government (800):
    BA..........................      18.178      19.768      20.025      19.654      19.955      19.760      20.168      20.572      21.294      22.039      22.829        99.162       206.064
    OT..........................      18.103      19.586      20.213      19.713      19.716      19.552      19.761      20.127      20.826      21.700      22.323        98.780       203.517
Net Interest (900):
    BA..........................     155.632     166.909     205.856     232.715     244.783     251.721     256.622     257.956     259.397     260.329     257.045     1,101.984     2,393.333
    OT..........................     155.632     166.909     205.856     232.715     244.783     251.721     256.622     257.956     259.397     260.329     257.045     1,101.984     2,393.333
    On-budget:
        BA......................     239.741     256.667     303.803     341.619     366.538     387.576     407.629     425.168     443.855     463.017     478.803     1,656.203     3,874.675
        OT......................     239.741     256.667     303.803     341.619     366.538     387.576     407.629     425.168     443.855     463.017     478.803     1,656.203     3,874.675
    Off-budget:
        BA......................     -84.109     -89.758     -97.947    -108.904    -121.755    -135.855    -151.007    -167.212    -184.458    -202.688    -221.758      -554.219    -1,481.342
        OT......................     -84.109     -89.758     -97.947    -108.904    -121.755    -135.855    -151.007    -167.212    -184.458    -202.688    -221.758      -554.219    -1,481.342
Allowances (920):
    BA..........................  ..........      -0.223  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........        -0.223        -0.223
    OT..........................  ..........      -0.201      -0.009      -0.007      -0.004  ..........  ..........  ..........  ..........  ..........  ..........        -0.221        -0.221
Undistributed Offsetting
 Receipts (950):
    BA..........................     -50.513     -52.926     -63.401     -65.950     -63.707     -66.604     -66.529     -69.514     -72.741     -75.653     -78.939      -312.588      -675.964
    OT..........................     -50.513     -52.926     -63.401     -65.950     -63.707     -66.604     -66.529     -69.514     -72.741     -75.653     -78.939      -312.588      -675.964
    On-budget:
        BA......................     -41.104     -42.894     -52.598     -54.459     -51.535     -53.540     -52.609     -54.685     -56.841     -59.025     -61.229      -255.026      -539.415
        OT......................     -41.104     -42.894     -52.598     -54.459     -51.535     -53.540     -52.609     -54.685     -56.841     -59.025     -61.229      -255.026      -539.415
    Off-budget:
        BA......................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
        OT......................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                              TABLE 11.--FISCAL YEAR 2004 BUDGET RESOLUTION DISCRETIONARY SPENDING
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013       2004-2008     2004-2013
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
    BA..........................     765.796     775.386     802.587     830.682     860.381     891.601     915.318     939.877     965.492     991.479   1,018.043     4,160.637     8,990.846
    OT..........................     804.682     835.873     844.653     859.483     879.661     911.861     940.906     968.801     999.395   1,018.939   1,050.829     4,331.531     9,310.401
Defense:
    BA..........................     392.137     400.058     419.437     439.507     459.729     480.129     493.288     507.026     521.259     535.680     550.432     2,198.860     4,806.545
    OT..........................     386.373     400.561     413.682     425.379     437.995     462.157     479.923     496.588     515.552     523.096     542.715     2,139.774     4,697.648
Nondefense:
    BA..........................     373.659     375.328     383.150     391.175     400.652     411.472     422.030     432.851     444.233     455.799     467.611     1,961.777     4,184.301
    OT..........................     418.309     435.312     430.971     434.104     441.666     449.704     460.983     472.213     483.843     495.843     508.114     2,191.757     4,612.753

                                                                                           BY FUNCTION
National Defense (050):
    BA..........................     392.137     400.058     419.437     439.507     459.729     480.129     493.288     507.026     521.259     535.680     550.432     2,198.860     4,806.545
    OT..........................     386.373     400.561     413.682     425.379     437.995     462.157     479.923     496.588     515.552     523.096     542.715     2,139.774     4,697.648
International Affairs (150):
    BA..........................      25.407      27.843      29.122      30.620      31.842      32.791      33.546      34.351      35.187      36.016      36.851       152.218       328.169
    OT..........................      26.000      26.376      26.888      28.455      30.266      31.234      32.310      33.233      34.097      34.935      35.754       143.219       313.548
General Science, Space, and
 Technology (250):
    BA..........................      23.047      22.741      23.561      24.314      25.122      25.867      26.472      27.108      27.767      28.430      29.100       121.605       260.482
    OT..........................      21.457      22.251      22.989      23.627      24.381      25.095      25.768      26.404      27.047      27.703      28.360       118.343       253.625
Energy (270):
    BA..........................       3.237       3.625       3.888       3.813       3.794       4.752       4.840       4.960       5.086       5.211       5.344        19.872        45.313
    OT..........................       3.151       3.614       3.856       3.915       3.816       4.562       4.804       4.919       5.043       5.167       5.297        19.763        44.993
Natural Resources and
 Environment (300):
    BA..........................      29.238      27.018      27.588      28.150      28.751      29.646      30.518      31.431      32.374      33.340      34.320       141.153       303.136
    OT..........................      27.857      28.167      28.205      28.427      28.771      29.305      30.073      30.914      31.800      32.700      33.657       142.875       302.019
Agriculture (350):
    BA..........................       5.727       5.109       5.467       5.569       5.691       5.838       6.005       6.177       6.354       6.538       6.728        27.674        59.476
    OT..........................       5.852       5.537       5.334       5.462       5.599       5.783       5.943       6.116       6.287       6.471       6.658        27.715        59.190
Commerce and Housing Credit
 (370):
    BA..........................       0.150      -0.503      -0.217      -0.489       0.595       0.916       1.225       1.280       1.369       1.439       1.521         0.302         7.136
    OT..........................       0.054       0.147      -0.314      -0.564       0.523       0.730       1.042       1.150       1.234       1.333       1.387         0.522         6.668
    On-budget:
        BA......................       0.150      -0.503      -0.217      -0.489       0.595       0.916       1.225       1.280       1.369       1.439       1.521         0.302         7.136
        OT......................       0.054       0.147      -0.314      -0.564       0.523       0.730       1.042       1.150       1.234       1.333       1.387         0.522         6.668
    Off-budget:
        BA......................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
        OT......................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
Transportation (400):
    BA..........................      22.611      22.225      22.140      22.544      23.010      23.554      24.279      25.042      25.828      26.635      27.468       113.473       242.725
    OT..........................      65.184      71.603      67.717      66.368      66.366      66.848      67.742      69.169      70.686      72.297      73.940       338.902       692.736
Community and Regional
 Development (450):
    BA..........................      11.725      13.909      14.227      14.527      14.849      15.313      15.668      16.043      16.434      16.824      17.218        72.825       155.012
    OT..........................      16.054      16.016      16.116      15.289      15.145      14.775      15.116      15.491      15.866      16.227      16.614        77.341       156.655
Education, Training, Employment
 and Social Services (500):
    BA..........................      72.875      75.390      74.170      75.775      77.459      79.444      80.873      82.381      83.947      85.515      87.091       382.238       802.045
    OT..........................      71.958      74.172      73.051      74.414      75.943      77.662      79.647      81.218      82.757      84.313      85.892       375.242       789.069
Health (550):
    BA..........................      49.468      48.063      49.093      50.183      51.285      52.591      53.850      55.162      56.522      57.887      59.271       251.215       533.907
    OT..........................      44.349      47.097      48.243      49.086      50.216      51.105      52.282      53.540      54.849      56.186      57.537       245.747       520.141
Medicare (570):
    BA..........................       3.798       3.619       3.687       3.785       3.888       4.009       4.221       4.433       4.662       4.936       5.234        18.988        42.474
    OT..........................       3.797       3.668       3.723       3.795       3.883       4.000       4.192       4.401       4.629       4.891       5.184        19.069        42.366
Income Security (600):
    BA..........................      44.020      44.436      45.235      46.150      46.305      46.540      47.533      48.538      49.589      50.639      51.691       228.666       476.656
    OT..........................      50.781      50.570      48.947      49.387      49.075      48.944      49.724      50.427      51.286      52.128      52.985       246.923       503.473
Social Security (650):
    BA..........................       3.833       4.160       4.226       4.310       4.407       4.519       4.671       4.829       4.991       5.158       5.333        21.622        46.604
    OT..........................       3.859       4.171       4.225       4.318       4.408       4.515       4.661       4.816       4.980       5.145       5.320        21.637        46.559
    On-budget:
        BA......................       0.021       0.024       0.024       0.025       0.026       0.026       0.027       0.028       0.029       0.030       0.031         0.125         0.270
        OT......................       0.021       0.023       0.024       0.025       0.026       0.026       0.027       0.028       0.029       0.030       0.031         0.124         0.269
    Off-budget:
        BA......................       3.812       4.136       4.202       4.285       4.381       4.493       4.644       4.801       4.962       5.128       5.302        21.497        46.334
        OT......................       3.838       4.148       4.201       4.293       4.382       4.489       4.634       4.788       4.951       5.115       5.289        21.513        46.290
Veterans Benefits and Services
 (700):
    BA..........................      26.532      27.318      27.729      28.153      28.610      29.174      30.128      31.102      32.116      33.159      34.234       140.984       301.723
    OT..........................      26.902      27.509      27.603      27.980      28.483      29.109      29.969      30.924      31.931      32.968      34.036       140.684       300.512
Administration of Justice (750):
    BA..........................      36.289      33.314      35.592      36.372      37.247      38.266      39.328      40.482      41.819      43.190      44.612       180.791       390.222
    OT..........................      35.484      37.693      36.532      36.636      37.212      38.127      39.256      40.398      41.614      42.961      44.373       186.200       394.802
General Government (800):
    BA..........................      15.702      17.284      17.642      17.399      17.797      18.252      18.873      19.532      20.188      20.882      21.595        88.374       189.444
    OT..........................      15.570      16.922      17.865      17.516      17.583      17.910      18.454      19.093      19.737      20.418      21.120        87.796       186.618
Allowances (920):
    BA..........................  ..........      -0.223  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........        -0.223        -0.223
    OT..........................  ..........      -0.201      -0.009      -0.007      -0.004  ..........  ..........  ..........  ..........  ..........  ..........        -0.221        -0.221
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                TABLE 12.--FISCAL YEAR 2004 BUDGET RESOLUTION MANDATORY SPENDING
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013       2004-2008     2004-2013
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
    BA..........................   1,392.759   1,444.869   1,539.412   1,642.923   1,723.502   1,804.842   1,891.248   1,973.161   2,081.313   2,179.789   2,303.291     8,155.548    18,584.350
    OT..........................   1,338.728   1,396.312   1,488.469   1,582.960   1,664.462   1,744.561   1,830.189   1,912.085   2,021.472   2,111.964   2,238.162     7,876.764    17,990.636
    On-budget:
        BA......................   1,028.062   1,062.129   1,146.701   1,239.741   1,307.834   1,375.422   1,445.339   1,509.030   1,598.732   1,674.145   1,771.374     6,131.827    14,130.447
        OT......................     976.051   1,015.982   1,098.548   1,182.858   1,252.164   1,318.891   1,388.420   1,452.394   1,543.721   1,611.630   1,712.045     5,868.443    13,576.653
    Off-budget:
        BA......................     364.697     382.740     392.711     403.182     415.668     429.420     445.909     464.131     482.581     505.644     531.917     2,023.721     4,453.903
        OT......................     362.677     380.330     389.921     400.102     412.298     425.670     441.769     459.691     477.751     500.334     526.117     2,008.321     4,413.983

                                                                                           BY FUNCTION
National Defense (050):
    BA..........................       0.357       0.488       0.634       0.678       0.706       0.757       0.779       0.814       0.844       0.851       0.891         3.263         7.442
    OT..........................      -0.144       0.355       0.555       0.632       0.661       0.704       0.727       0.760       0.786       0.788       0.826         2.907         6.794
International Affairs (150):
    BA..........................      -2.901      -3.096      -0.496       0.462       0.420       0.316       0.213       0.094       0.107       0.112       0.134        -2.394        -1.734
    OT..........................      -6.717      -2.700      -2.760      -2.847      -2.857      -2.845      -2.912      -3.012      -3.032      -3.062      -3.017       -14.009       -29.044
General Science, Space, and
 Technology (250):
    BA..........................       0.106       0.030       0.030       0.030       0.031       0.032       0.031       0.032       0.033       0.034       0.034         0.153         0.317
    OT..........................       0.099       0.097       0.093       0.063       0.044       0.032       0.031       0.031       0.032       0.032       0.033         0.329         0.488
Energy (270):
    BA..........................      -1.163      -1.042      -1.181      -1.204      -1.363      -1.764      -1.863      -1.875      -1.904      -1.922      -1.942        -6.554       -16.060
    OT..........................      -2.712      -2.685      -2.894      -2.670      -2.793      -3.160      -3.141      -3.135      -3.086      -2.848      -3.002       -14.202       -29.414
Natural Resources and
 Environment (300):
    BA..........................       1.578       2.219       2.662       2.790       2.697       2.578       2.936       2.990       3.053       3.003       2.920        12.946        27.848
    OT..........................       1.083       1.699       2.069       2.772       2.560       2.401       2.762       2.843       2.941       2.915       2.933        11.501        25.895
Agriculture (350):
    BA..........................      18.691      18.857      20.677      20.230      19.422      18.197      18.234      17.250      16.631      16.113      15.705        97.383       181.316
    OT..........................      17.513      17.819      19.860      19.525      18.816      17.740      18.123      17.380      16.715      16.156      15.730        93.760       177.864
Commerce and Housing Credit
 (370):
    BA..........................       5.062       7.704       8.350       6.156       5.400       4.180       3.763       3.328       3.055       2.817       2.532        31.790        47.285
    OT..........................       2.227       3.240       3.873       1.216      -0.329      -1.907      -2.331      -3.071      -3.891      -4.496      -4.741         6.093       -12.437
    On-budget:
        BA......................       8.662       7.904       8.850       8.634       8.571       7.712       7.538       7.457       7.570       7.590       7.726        41.671        79.552
        OT......................       5.827       3.440       4.373       3.694       2.842       1.625       1.444       1.058       0.624       0.277       0.453        15.974        19.830
    Off-budget:
        BA......................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
        OT......................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
Transportation (400):
    BA..........................      41.480      43.191      43.645      44.147      44.683      45.093      45.546      45.974      46.895      47.797      48.750       220.759       455.721
    OT..........................       2.663       2.229       2.144       2.001       1.927       1.852       1.862       1.852       1.887       1.931       1.984        10.153        19.669
Community and Regional
 Development (450):
    BA..........................       0.526       0.228       0.128       0.120       0.119       0.037       0.033       0.032       0.033       0.033       0.037         0.632         0.800
    OT..........................      -0.060      -0.093      -0.126      -0.169      -0.227      -0.275      -0.314      -0.345      -0.342      -0.335      -0.326        -0.890        -2.552
Education, Training, Employment
 and Social Services (500):
    BA..........................      13.294       9.354      10.206      10.888      11.181      11.355      11.504      11.534      11.865      12.100      12.425        52.984       112.412
    OT..........................       9.382      11.530      10.542      10.218      10.465      10.681      10.823      10.933      11.161      11.381      11.691        53.436       109.425
Health (550):
    BA..........................     172.410     186.970     199.468     215.141     232.769     250.922     269.943     290.059     313.650     336.951     363.894     1,085.270     2,659.767
    OT..........................     173.672     188.311     200.012     215.725     232.965     251.266     270.228     290.395     314.039     337.394     364.321     1,088.279     2,664.656
Medicare (570):
    BA..........................     244.788     257.679     271.788     308.662     328.132     348.383     367.944     387.619     416.029     448.979     485.263     1,514.644     3,620.478
    OT..........................     244.637     257.953     274.679     305.505     328.416     348.287     367.737     387.908     419.251     445.421     485.570     1,514.840     3,620.727
Income Security (600):
    BA..........................     282.568     271.503     281.217     286.290     290.930     299.364     306.960     313.740     326.737     329.028     341.873     1,429.304     3,047.642
    OT..........................     283.592     271.006     280.945     285.496     290.082     298.205     305.687     312.632     325.784     328.275     341.435     1,425.734     3,039.547
Social Security (650):
    BA..........................     475.049     496.929     517.267     542.481     570.715     601.672     636.566     674.630     715.660     761.153     811.029     2,729.064     6,328.102
    OT..........................     473.029     494.519     514.477     539.401     567.345     597.922     632.426     670.190     710.830     755.843     805.229     2,713.664     6,288.182
    On-budget:
        BA......................      13.234      14.199      15.306      16.426      17.949      19.801      21.955      24.329      28.206      31.420      34.450        83.681       224.041
        OT......................      13.234      14.199      15.306      16.426      17.949      19.801      21.955      24.329      28.206      31.420      34.450        83.681       224.041
    Off-budget:
        BA......................     461.815     482.730     501.961     526.055     552.766     581.871     614.611     650.301     687.454     729.733     776.579     2,645.383     6,104.061
        OT......................     459.795     480.320     499.171     522.975     549.396     578.121     610.471     645.861     682.624     724.423     770.779     2,629.983     6,064.141
Veterans Benefits and Services
 (700):
    BA..........................      31.065      33.392      38.098      35.823      33.710      36.481      36.760      37.056      40.530      36.646      40.218       177.504       368.714
    OT..........................      30.584      33.183      37.726      35.740      33.531      36.393      36.675      36.950      40.419      36.448      40.096       176.573       367.161
Administration of Justice (750):
    BA..........................       2.254       3.996       2.081       1.209       0.716       0.614       0.511       0.402       0.333       0.261       0.188         8.616        10.311
    OT..........................       2.228       3.202       2.471       1.390       0.647       0.506       0.406       0.298       0.233       0.163       0.091         8.216         9.407
General Government (800):
    BA..........................       2.476       2.484       2.383       2.255       2.158       1.508       1.295       1.040       1.106       1.157       1.234        10.788        16.620
    OT..........................       2.533       2.664       2.348       2.197       2.133       1.642       1.307       1.034       1.089       1.282       1.203        10.984        16.899
Net Interest (900):
    BA..........................     155.632     166.909     205.856     232.715     244.783     251.721     256.622     257.956     259.397     260.329     257.045     1,101.984     2,393.333
    OT..........................     155.632     166.909     205.856     232.715     244.783     251.721     256.622     257.956     259.397     260.329     257.045     1,101.984     2,393.333
    On-budget:
        BA......................     239.741     256.667     303.803     341.619     366.538     387.576     407.629     425.168     443.855     463.017     478.803     1,656.203     3,874.675
        OT......................     239.741     256.667     303.803     341.619     366.538     387.576     407.629     425.168     443.855     463.017     478.803     1,656.203     3,874.675
    Off-budget:
        BA......................     -84.109     -89.758     -97.947    -108.904    -121.755    -135.855    -151.007    -167.212    -184.458    -202.688    -221.758      -554.219    -1,481.342
        OT......................     -84.109     -89.758     -97.947    -108.904    -121.755    -135.855    -151.007    -167.212    -184.458    -202.688    -221.758      -554.219    -1,481.342
Allowances (920):
    BA..........................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
    OT..........................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
Undistributed Offsetting
 Receipts (950):
    BA..........................     -50.513     -52.926     -63.401     -65.950     -63.707     -66.604     -66.529     -69.514     -72.741     -75.653     -78.939      -312.588      -675.964
    OT..........................     -50.513     -52.926     -63.401     -65.950     -63.707     -66.604     -66.529     -69.514     -72.741     -75.653     -78.939      -312.588      -675.964
    On-budget:
        BA......................     -41.104     -42.894     -52.598     -54.459     -51.535     -53.540     -52.609     -54.685     -56.841     -59.025     -61.229      -255.026      -539.415
        OT......................     -41.104     -42.894     -52.598     -54.459     -51.535     -53.540     -52.609     -54.685     -56.841     -59.025     -61.229      -255.026      -539.415
    Off-budget:
        BA......................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
        OT......................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                           TABLE 13.--FISCAL YEAR 2004 BUDGET RESOLUTION MINUS THE PRESIDENT'S BUDGET
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Fiscal year                2003       2004       2005       2006       2007       2008        2009         2010         2011         2012         2013      2004-2008    2004-2013
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
    BA..............................     0.536    -18.508    -44.021    -54.172    -65.247    -85.959     -104.949     -132.115     -145.148     -152.333     -167.642     -267.907     -970.094
    OT..............................     0.523    -13.208    -36.728    -48.527    -61.689    -82.567     -101.476     -127.749     -140.922     -147.708     -163.205     -242.719     -923.779
    On-budget:
        BA..........................     0.555    -19.008    -43.939    -50.787    -61.866    -82.013     -100.560     -127.122     -139.512     -146.130     -160.678     -257.613     -931.615
        OT..........................     0.542    -13.770    -36.682    -45.165    -58.326    -78.638      -97.103     -122.773     -135.305     -141.524     -156.260     -232.581     -885.546
    Off-Budget:
        BA..........................    -0.019      0.500     -0.082     -3.385     -3.381     -3.946       -4.389       -4.993       -5.636       -6.203       -6.964      -10.294      -38.479
    OT..............................    -0.019      0.562     -0.046     -3.362     -3.363     -3.929       -4.373       -4.976       -5.617       -6.184       -6.945      -10.138      -38.233
Revenues:
    Total...........................    -1.044      0.836      7.172      8.769     11.199     13.873       16.927       18.847       20.034       21.240       22.616       41.849      141.513
    On-Budget.......................    -1.044      0.836      7.172      8.769     11.199     13.873       16.927       18.847       20.034       21.240       22.616       41.849      141.513
    Off-Budget......................     0.000      0.000      0.000      0.000      0.000      0.000        0.000        0.000        0.000        0.000        0.000        0.000        0.000
Surplus/Deficit (-):
    Total...........................    -1.567     14.044     43.900     57.296     72.888     96.440      118.403      146.596      160.956      168.948      185.821      284.568    1,065.292
    On-Budget.......................    -1.586     14.606     43.854     53.934     69.525     92.511      114.030      141.620      155.339      162.764      178.876      274.430    1,027.059
    Off-Budget......................     0.019     -0.562      0.046      3.362      3.363      3.929        4.373        4.976        5.617        6.184        6.945       10.138       38.233

                                                                                           BY FUNCTION
National Defense (050):
    BA..............................     0.000      0.070      0.000      0.000      0.000      0.000        0.000        0.000        0.000        0.000        0.000        0.070        0.070
    OT..............................     0.000      0.034      0.032      0.004      0.000      0.000        0.000        0.000        0.000        0.000        0.000        0.070        0.070
International Affairs (150):
    BA..............................     0.000     -0.934     -1.108     -1.226     -1.341     -1.504       -1.654       -1.813       -1.842       -1.877       -1.900       -6.113      -15.199
    OT..............................     0.000     -0.531     -0.789     -0.931     -1.055     -1.215       -1.335       -1.468       -1.500       -1.535       -1.561       -4.521      -11.920
General Science, Space, and
 Technology (250):
    BA..............................     0.000     -0.732     -0.739     -0.768     -0.796     -0.823       -0.847       -0.866       -0.887       -0.908       -0.928       -3.858       -8.294
    OT..............................     0.000     -0.330     -0.536     -0.626     -0.672     -0.706       -0.729       -0.748       -0.768       -0.785       -0.805       -2.870       -6.705
Energy (270):
    BA..............................     0.000     -0.252     -0.269     -0.283     -0.282     -0.270       -0.296       -0.299       -0.306       -0.314       -0.322       -1.356       -2.893
    OT..............................     0.000     -0.175     -0.206     -0.228     -0.228     -0.202       -0.211       -0.205       -0.218       -0.240       -0.241       -1.039       -2.154
Natural Resources and Environment
 (300):
    BA..............................     0.000     -1.000     -0.904     -0.864     -0.817     -0.904       -1.014       -1.120       -1.115       -1.089       -1.159       -4.489       -9.986
    OT..............................     0.000     -0.491     -0.683     -0.731     -0.701     -0.788       -0.885       -0.986       -0.980       -0.951       -1.022       -3.394       -8.218
Agriculture (350):
    BA..............................     0.000     -0.663     -0.884     -1.042     -1.183     -1.459       -1.840       -2.104       -1.986       -1.899       -1.843       -5.231      -14.903
    OT..............................     0.000     -0.337     -0.501     -0.600     -0.688     -0.845       -1.045       -1.205       -1.155       -1.125       -1.084       -2.971       -8.585
Commerce and Housing Credit (370):
    BA..............................     0.000     -0.112     -0.145     -3.470     -2.675     -3.702       -4.025       -4.457       -4.838       -5.091       -5.503      -10.104      -34.018
    OT..............................     0.000     -0.043     -0.073     -3.341     -2.514     -3.477       -3.737       -4.089       -4.443       -4.671       -5.085       -9.448      -31.473
    On-Budget:
        BA..........................     0.000     -0.112     -0.145     -0.192      0.496     -0.170       -0.250       -0.328       -0.323       -0.318       -0.309       -0.123       -1.651
        OT..........................     0.000     -0.043     -0.073     -0.063      0.657      0.055        0.038        0.040        0.072        0.102        0.109        0.533        0.894
    Off-Budget:
        BA..........................     0.000      0.000      0.000     -3.278     -3.171     -3.532       -3.775       -4.129       -4.515       -4.773       -5.194       -9.981      -32.367
        OT..........................     0.000      0.000      0.000     -3.278     -3.171     -3.532       -3.775       -4.129       -4.515       -4.773       -5.194       -9.981      -32.367
Transportation (400):
    BA..............................     0.000      5.577      0.505     -0.178     -0.764     -1.412       -1.895       -2.433       -2.533       -2.662       -2.749        3.728       -8.544
    OT..............................     0.000      5.069      3.439      2.086      0.905     -0.058       -0.695       -0.881       -1.056       -1.221       -1.382       11.441        6.206
Community and Regional Development
 (450):
    BA..............................     0.000     -0.298     -0.273     -0.282     -0.291     -0.302       -0.318       -0.331       -0.339       -0.348       -0.355       -1.446       -3.137
    OT..............................     0.000     -0.162     -0.241     -0.265     -0.256     -0.256       -0.263       -0.268       -0.276       -0.284       -0.291       -1.180       -2.562
Education, Training, Employment and
 Social Services (500):
    BA..............................    -0.130     -2.270     -2.702     -2.745     -2.877     -3.052       -3.228       -3.405       -3.460       -3.522       -3.573      -13.646      -30.834
    OT..............................    -0.115     -1.074     -1.999     -2.290     -2.490     -2.688       -2.854       -3.038       -3.087       -3.146       -3.194      -10.541      -25.860
Health (550):
    BA..............................     0.225     -7.922    -15.847    -19.187    -20.306    -23.052      -26.385      -30.689      -32.446      -34.169      -36.054      -86.314     -246.057
    OT..............................     0.225     -7.058    -15.428    -18.918    -20.068    -22.842      -26.185      -30.495      -32.252      -33.956      -35.797      -84.314     -242.999
Medicare (570):
    BA..............................     0.000     -3.880     -7.584     -9.888    -12.648    -18.035      -24.580      -31.782      -34.250      -35.752      -37.874      -52.035     -216.273
    OT..............................     0.000     -3.822     -7.605     -9.796    -12.639    -18.015      -24.555      -31.783      -34.418      -35.529      -37.873      -51.877     -216.035
Income Security (600):
    BA..............................     0.198     -3.235     -5.026     -6.546     -8.379    -12.031      -15.391      -18.469      -19.154      -18.566      -18.902      -35.217     -125.699
    OT..............................     0.170     -2.659     -4.799     -6.573     -8.224    -11.744      -15.193      -18.317      -18.993      -18.403      -18.749      -33.999     -123.654
Social Security (650):
    BA..............................     0.000     -0.051     -0.006      0.056      0.114      0.120        0.132        0.137        0.146        0.157        0.167        0.233        0.972
    OT..............................     0.000      0.011      0.030      0.079      0.132      0.137        0.148        0.154        0.165        0.176        0.186        0.389        1.218
    On-Budget:
        BA..........................     0.000     -0.629     -0.001     -0.001     -0.001     -0.001       -0.001       -0.001       -0.001       -0.001       -0.001       -0.633       -0.638
        OT..........................     0.000     -0.629     -0.001     -0.001     -0.001     -0.001       -0.001       -0.001       -0.001       -0.001       -0.001       -0.633       -0.638
    Off-Budget:
        BA..........................     0.000      0.578     -0.005      0.057      0.115      0.121        0.133        0.138        0.147        0.158        0.168        0.866        1.610
        OT..........................     0.000      0.640      0.031      0.080      0.133      0.138        0.149        0.155        0.166        0.177        0.187        1.022        1.856
Veterans Benefits and Services
 (700):
    BA..............................     0.000     -1.268     -1.538     -1.668     -1.808     -2.273       -2.662       -3.117       -3.316       -3.118       -3.303       -8.555      -24.071
    OT..............................     0.000     -0.830     -1.283     -1.495     -1.666     -2.152       -2.548       -2.994       -3.189       -2.983       -3.171       -7.426      -22.311
Administration of Justice (750):
    BA..............................     0.000     -0.963     -0.856     -0.928     -0.963     -1.030       -1.098       -1.173       -1.201       -1.235       -1.266       -4.740      -10.713
    OT..............................     0.000     -0.507     -0.786     -0.830     -0.860     -0.927       -0.990       -1.063       -1.088       -1.117       -1.145       -3.910       -9.313
General Government (800):
    BA..............................    -0.017     -0.918     -1.149     -2.953     -1.375     -2.047       -1.950       -2.299       -2.336       -2.398       -2.478       -8.442      -19.903
    OT..............................    -0.017     -0.668     -0.995     -2.865     -1.305     -1.981       -1.876       -2.218       -2.254       -2.321       -2.391       -7.814      -18.874
Net Interest (900):
    BA..............................     0.260      0.651     -4.140     -4.253     -6.779    -13.131      -18.595      -28.627      -35.957      -42.581      -52.677      -27.652     -206.089
    OT..............................     0.260      0.651     -4.140     -4.253     -6.779    -13.131      -18.595      -28.627      -35.957      -42.581      -52.677      -27.652     -206.089
    On-budget:
        BA..........................     0.279      0.729     -4.063     -4.089     -6.454    -12.596      -17.848      -27.625      -34.689      -40.993      -50.739      -26.473     -198.367
        OT..........................     0.279      0.729     -4.063     -4.089     -6.454    -12.596      -17.848      -27.625      -34.689      -40.993      -50.739      -26.473     -198.367
    Off-Budget:
        BA..........................    -0.019     -0.078     -0.077     -0.164     -0.325     -0.535       -0.747       -1.002       -1.268       -1.588       -1.938       -1.179       -7.722
        OT..........................    -0.019     -0.078     -0.077     -0.164     -0.325     -0.535       -0.747       -1.002       -1.268       -1.588       -1.938       -1.179       -7.722
Allowances (920):
    BA..............................     0.000     -0.223     -1.275     -1.275     -0.025     -0.025       -0.025       -0.025       -0.025       -0.025       -0.025       -2.823       -2.948
    OT..............................     0.000     -0.201     -0.084     -0.282     -0.529     -0.650       -0.650       -0.275       -0.150       -0.100       -0.025       -1.746       -2.946
Undistributed Offsetting Receipts
 (950):
    BA..............................     0.000     -0.085     -0.081      3.328     -2.052     -1.027        0.722        0.757        0.697        3.064        3.102        0.083        8.425
    OT..............................     0.000     -0.085     -0.081      3.328     -2.052     -1.027        0.722        0.757        0.697        3.064        3.102        0.083        8.425
    On-Budget:
        BA..........................     0.000     -0.085     -0.081      3.328     -2.052     -1.027        0.722        0.757        0.697        3.064        3.102        0.083        8.425
        OT..........................     0.000     -0.085     -0.081      3.328     -2.052     -1.027        0.722        0.757        0.697        3.064        3.102        0.083        8.425
    Off-Budget:
        BA..........................     0.000      0.000      0.000      0.000      0.000      0.000        0.000        0.000        0.000        0.000        0.000        0.000        0.000
        OT..........................     0.000      0.000      0.000      0.000      0.000      0.000        0.000        0.000        0.000        0.000        0.000        0.000        0.000
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                   TABLE 14.--FISCAL YEAR 2004 BUDGET RES0LUTION COMPARED TO 2003: TOTAL SPENDING AND REVENUES
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                      Fiscal year                          2004       2005       2006       2007       2008       2009       2010        2011        2012        2013      2004-2008   2004-2013
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
    BA................................................     61.700    183.444    315.050    425.328    537.888    648.011     754.483     888.250   1,012.713   1,162.779   1,523.410   5,989.646
    OT................................................     88.775    189.712    299.033    400.713    513.012    627.685     737.476     877.457     987.493   1,145.581   1,491.245   5,866.937
    On-budget:
        BA............................................     43.333    155.040    276.092    373.788    472.484    565.967     654.060     769.216     870.450     994.069   1,320.737   5,174.499
        OT............................................     70.812    162.105    261.153    350.548    449.368    547.797     639.512     761.270     848.559     980.690   1,293.986   5,071.814
    Off-Budget:
        BA............................................     18.367     28.404     38.958     51.540     65.404     82.044     100.423     119.034     142.263     168.710     202.673     815.147
        OT............................................     17.963     27.607     37.880     50.165     63.644     79.888      97.964     116.187     138.934     164.891     197.259     795.123
Revenues:
    Total.............................................     52.688    251.826    426.555    589.034    731.913    881.261   1,031.365   1,172.692   1,338.738   1,517.069   2,052.016   7,993.141
    On-Budget.........................................     26.409    195.538    339.000    469.413    579.011    693.656     807.138     912.067   1,040.697   1,178.906   1,609.371   6,241.835
    Off-Budget........................................     26.279     56.288     87.555    119.621    152.902    187.605     224.227     260.625     298.041     338.163     442.645   1,751.306
Surplus/Deficit (-):
    Total.............................................    -36.087     62.114    127.522    188.321    218.901    253.576     293.889     295.235     351.245     371.488     560.771   2,126.204
    On-Budget.........................................    -44.403     33.433     77.847    118.865    129.643    145.859     167.626     150.797     192.138     198.216     315.385   1,170.021
    Off-Budget........................................      8.316     28.681     49.675     69.456     89.258    107.717     126.263     144.438     159.107     173.272     245.386     956.183

                                                                                           BY FUNCTION
National Defense (050):
    BA................................................      8.052     27.577     47.691     67.941     88.392    101.573     115.346     129.609     144.037     158.829     239.653     889.047
    OT................................................     14.687     28.008     39.782     52.427     76.632     94.421     111.119     130.109     137.655     157.312     211.536     842.152
International Affairs (150):
    BA................................................      2.241      6.120      8.576      9.756     10.601     11.253      11.939      12.788      13.622      14.479      37.294     101.375
    OT................................................      4.393      4.845      6.325      8.126      9.106     10.115      10.938      11.782      12.590      13.454      32.795      91.674
General Science, Space, and Technology (250):
    BA................................................     -0.382      0.438      1.191      2.000      2.746      3.350       3.987       4.647       5.311       5.981       5.993      29.269
    OT................................................      0.792      1.526      2.134      2.869      3.571      4.243       4.879       5.523       6.179       6.837      10.892      38.553
Energy (270):
    BA................................................      0.509      0.633      0.535      0.357      0.914      0.903       1.011       1.108       1.215       1.328       2.948       8.513
    OT................................................      0.490      0.523      0.806      0.584      0.963      1.224       1.345       1.518       1.880       1.856       3.366      11.189
Natural Resources and Environment (300):
    BA................................................     -1.579     -0.566      0.124      0.632      1.408      2.638       3.605       4.611       5.527       6.424       0.019      22.824
    OT................................................      0.926      1.334      2.259      2.391      2.766      3.895       4.817       5.801       6.675       7.650       9.676      38.514
Agriculture (350):
    BA................................................     -0.452      1.726      1.381      0.695     -0.383     -0.179      -0.991      -1.433      -1.767      -1.985       2.967      -3.388
    OT................................................     -0.009      1.829      1.622      1.050      0.158      0.701       0.131      -0.363      -0.738      -0.977       4.650       3.404
Commerce and Housing Credit (370):
    BA................................................      1.989      2.921      0.455      0.783     -0.116     -0.224      -0.604      -0.788      -0.956      -1.159       6.032       2.301
    OT................................................      1.106      1.278     -1.629     -2.087     -3.458     -3.570      -4.202      -4.938      -5.444      -5.635      -4.790     -28.579
    On-budget:
        BA............................................     -1.411     -0.179     -0.667      0.354     -0.184     -0.049      -0.075       0.127       0.217       0.435      -2.087      -1.432
        OT............................................     -2.294     -1.822     -2.751     -2.516     -3.526     -3.395      -3.673      -4.023      -4.271      -4.041     -12.909     -32.312
    Off-budget:
        BA............................................      3.400      3.100      1.122      0.429      0.068     -0.175      -0.529      -0.915      -1.173      -1.594       8.119       3.733
        OT............................................      3.400      3.100      1.122      0.429      0.068     -0.175      -0.529      -0.915      -1.173      -1.594       8.119       3.733
Transportation (400):
    BA................................................      1.325      1.694      2.600      3.602      4.556      5.734       6.925       8.632      10.341      12.127      13.777      57.536
    OT................................................      5.985      2.014      0.522      0.446      0.853      1.757       3.174       4.726       6.381       8.077       9.820      33.935
Community and RegionalDevelopment (450):
    BA................................................      1.886      2.104      2.396      2.717      3.099      3.450       3.824       4.216       4.606       5.004      12.202      33.302
    OT................................................     -0.071     -0.004     -0.874     -1.076     -1.494     -1.192      -0.848      -0.470      -0.102       0.294      -3.519      -5.837
Education, Training, Employment and Social Services
 (500):
    BA................................................     -1.425     -1.793      0.494      2.471      4.630      6.208       7.746       9.643      11.446      13.347       4.377      52.767
    OT................................................      4.362      2.253      3.292      5.068      7.003      9.130      10.811      12.578      14.354      16.243      21.978      85.094
Health (550):
    BA................................................     13.155     26.683     43.446     62.176     81.635    101.915     123.343     148.294     172.960     201.287     227.095     974.894
    OT................................................     17.387     30.234     46.790     65.160     84.350    104.489     125.914     150.867     175.559     203.837     243.921   1,004.587
Medicare (570):
    BA................................................     12.712     26.889     63.861     83.434    103.806    123.579     143.466     172.105     205.329     241.911     290.702   1,177.092
    OT................................................     13.187     29.968     60.866     83.865    103.853    123.495     143.875     175.446     201.878     242.320     291.739   1,178.753
Income Security (600):
    BA................................................    -10.649     -0.136      5.852     10.647     19.316     27.905      35.690      49.738      53.079      66.976      25.030     258.418
    OT................................................    -12.797     -4.481      0.510      4.784     12.776     21.038      28.686      42.697      46.030      60.047       0.792     199.290
Social Security (650):
    BA................................................     22.207     42.611     67.909     96.240    127.309    162.355     200.577     241.769     287.429     337.480     356.276   1,585.886
    OT................................................     21.802     41.814     66.831     94.865    125.549    160.199     198.118     238.922     284.100     333.661     350.861   1,565.861
    On-budget:
        BA............................................      0.968      2.075      3.196      4.720      6.572      8.727      11.102      14.980      18.195      21.226      17.531      91.761
        OT............................................      0.967      2.075      3.196      4.720      6.572      8.727      11.102      14.980      18.195      21.226      17.530      91.760
    Off-budget:
        BA............................................     21.239     40.536     64.713     91.520    120.737    153.628     189.475     226.789     269.234     316.254     338.745   1,494.125
    OT................................................     20.835     39.739     63.635     90.145    118.977    151.472     187.016     223.942     265.905     312.435     333.331   1,474.101
Veterans Benefits and Services (700):
    BA................................................      3.113      8.230      6.379      4.723      8.058      9.291      10.561      15.049      12.208      16.855      30.503      94.467
    OT................................................      3.206      7.843      6.234      4.528      8.016      9.158      10.388      14.864      11.930      16.646      29.827      92.813
Administration of Justice (750):
    BA................................................     -1.233     -0.870     -0.962     -0.580      0.337      1.296       2.341       3.609       4.908       6.257      -3.308      15.103
    OT................................................      3.183      1.291      0.314      0.147      0.921      1.950       2.984       4.135       5.412       6.752       5.856      27.089
General Government (800):
    BA................................................      1.590      1.847      1.476      1.777      1.582      1.990       2.394       3.116       3.861       4.651       8.272      24.284
    OT................................................      1.483      2.110      1.610      1.613      1.449      1.658       2.024       2.723       3.597       4.220       8.265      22.487
Net Interest (900):
    BA................................................     11.277     50.224     77.083     89.151     96.089    100.990     102.324     103.765     104.697     101.413     323.824     837.013
    OT................................................     11.277     50.224     77.083     89.151     96.089    100.990     102.324     103.765     104.697     101.413     323.824     837.013
    On-budget:
        BA............................................     16.926     64.062    101.878    126.797    147.835    167.888     185.427     204.114     223.276     239.062     457.498   1,477.265
        OT............................................     16.926     64.062    101.878    126.797    147.835    167.888     185.427     204.114     223.276     239.062     457.498   1,477.265
    Off-budget:
        BA............................................     -5.649    -13.838    -24.795    -37.646    -51.746    -66.898     -83.103    -100.349    -118.579    -137.649    -133.674    -640.252
        OT............................................     -5.649    -13.838    -24.795    -37.646    -51.746    -66.898     -83.103    -100.349    -118.579    -137.649    -133.674    -640.252
Allowances (920):
    BA................................................     -0.223  .........  .........  .........  .........  .........  ..........  ..........  ..........  ..........      -0.223      -0.223
    OT................................................     -0.201     -0.009     -0.007     -0.004  .........  .........  ..........  ..........  ..........  ..........      -0.221      -0.221
Undistributed Offsetting Receipts (950):
    BA................................................     -2.413    -12.888    -15.437    -13.194    -16.091    -16.016     -19.001     -22.228     -25.140     -28.426     -60.023    -170.834
    OT................................................     -2.413    -12.888    -15.437    -13.194    -16.091    -16.016     -19.001     -22.228     -25.140     -28.426     -60.023    -170.834
    On-budget:
        BA............................................     -1.790    -11.494    -13.355    -10.431    -12.436    -11.505     -13.581     -15.737     -17.921     -20.125     -49.506    -128.375
        OT............................................     -1.790    -11.494    -13.355    -10.431    -12.436    -11.505     -13.581     -15.737     -17.921     -20.125     -49.506    -128.375
    Off-budget:
        BA............................................     -0.623     -1.394     -2.082     -2.763     -3.655     -4.511      -5.420      -6.491      -7.219      -8.301     -10.517     -42.459
        OT............................................     -0.623     -1.394     -2.082     -2.763     -3.655     -4.511      -5.420      -6.491      -7.219      -8.301     -10.517     -42.459
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                               TABLE 15.--FISCAL YEAR 2004 BUDGET RES0LUTION COMPARED TO 2003 TOTAL SPENDING AND REVENUES
                                                                   [Percentage change]
--------------------------------------------------------------------------------------------------------------------------------------------------------
            Fiscal year                2004       2005       2006        2007        2008        2009        2010        2011        2012        2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         SUMMARY
Total Spending:
    BA............................        2.9        8.5        14.6        19.7        24.9        30.0        35.0        41.2        46.9        53.9
    OT............................        4.1        8.9        14.0        18.7        23.9        29.3        34.4        40.9        46.1        53.4
    On-budget:
        BA........................        2.4        8.7        15.4        20.9        26.4        31.6        36.5        43.0        48.6        55.5
        OT........................        4.0        9.1        14.7        19.7        25.3        30.8        36.0        42.8        47.8        55.2
    Off-Budget:
        BA........................        5.0        7.7        10.6        14.0        17.7        22.3        27.3        32.3        38.6        45.8
        OT........................        4.9        7.5        10.3        13.7        17.4        21.8        26.7        31.7        37.9        45.0
Revenues:
    Total.........................        2.8       13.6        23.0        31.7        39.4        47.5        55.6        63.2        72.2        81.8
        On-Budget.................        2.0       14.8        25.6        35.5        43.7        52.4        61.0        68.9        78.6        89.1
        Off-Budget................        4.9       10.6        16.5        22.5        28.8        35.3        42.2        49.0        56.1        63.6
Surplus/Deficit (-):
    Total.........................       12.5      -21.6       -44.3       -65.4       -76.0       -88.0      -102.0      -102.5      -121.9      -129.0
    On-Budget.....................        9.8       -7.4       -17.2       -26.2       -28.6       -32.2       -37.0       -33.3       -42.4       -43.7
    Off-Budget....................        5.0       17.4        30.1        42.1        54.1        65.2        76.5        87.5        96.4       105.0

                                                                       BY FUNCTION
National Defense (050):
    BA............................        2.1        7.0        12.2        17.3        22.5        25.9        29.4        33.0        36.7        40.5
    OT............................        3.8        7.3        10.3        13.6        19.8        24.4        28.8        33.7        35.6        40.7
International Affairs (150):
    BA............................       10.0       27.2        38.1        43.3        47.1        50.0        53.0        56.8        60.5        64.3
    OT............................       22.8       25.1        32.8        42.1        47.2        52.5        56.7        61.1        65.3        69.8
General Science, Space, and
 Technology (250):
    BA............................       -1.6        1.9         5.1         8.6        11.9        14.5        17.2        20.1        22.9        25.8
    OT............................        3.7        7.1         9.9        13.3        16.6        19.7        22.6        25.6        28.7        31.7
Energy (270):
    BA............................       24.5       30.5        25.8        17.2        44.1        43.5        48.7        53.4        58.6        64.0
    OT............................      111.6      119.1       183.6       133.0       219.4       278.8       306.4       345.8       428.2       422.8
Natural Resources and Environment
 (300):
    BA............................       -5.1       -1.8         0.4         2.1         4.6         8.6        11.7        15.0        17.9        20.8
    OT............................        3.2        4.6         7.8         8.3         9.6        13.5        16.6        20.0        23.1        26.4
Agriculture (350):
    BA............................       -1.9        7.1         5.7         2.8        -1.6        -0.7        -4.1        -5.9        -7.2        -8.1
    OT............................  .........        7.8         6.9         4.5         0.7         3.0         0.6        -1.6        -3.2        -4.2
Commerce and Housing Credit (370):
    BA............................       38.2       56.0         8.7        15.0        -2.2        -4.3       -11.6       -15.1       -18.3       -22.2
    OT............................       48.5       56.0       -71.4       -91.5      -151.6      -156.5      -184.2      -216.5      -238.7      -247.0
    On-Budget:
        BA........................      -16.0       -2.0        -7.6         4.0        -2.1        -0.6        -0.9         1.4         2.5         4.9
        OT........................      -39.0      -31.0       -46.8       -42.8       -60.0       -57.7       -62.5       -68.4       -72.6       -68.7
    Off-Budget:
        BA........................      -94.4      -86.1       -31.2       -11.9        -1.9         4.9        14.7        25.4        32.6        44.3
        OT........................      -94.4      -86.1       -31.2       -11.9        -1.9         4.9        14.7        25.4        32.6        44.3
Transportation (400):
    BA............................        2.1        2.6         4.1         5.6         7.1         8.9        10.8        13.5        16.1        18.9
    OT............................        8.8        3.0         0.8         0.7         1.3         2.6         4.7         7.0         9.4        11.9
Community and Regional Development
 (450):
    BA............................       15.4       17.2        19.6        22.2        25.3        28.2        31.2        34.4        37.6        40.8
    OT............................       -0.4  .........        -5.5        -6.7        -9.3        -7.5        -5.3        -2.9        -0.6         1.8
Education, Training, Employment
 and Social Services (500):
    BA............................       -1.7       -2.1         0.6         2.9         5.4         7.2         9.0        11.2        13.3        15.5
    OT............................        5.4        2.8         4.0         6.2         8.6        11.2        13.3        15.5        17.6        20.0
Health (550):
    BA............................        5.9       12.0        19.6        28.0        36.8        45.9        55.6        66.8        78.0        90.7
    OT............................        8.0       13.9        21.5        29.9        38.7        47.9        57.8        69.2        80.5        93.5
Medicare (570):
    BA............................        5.1       10.8        25.7        33.6        41.8        49.7        57.7        69.2        82.6        97.3
    OT............................        5.3       12.1        24.5        33.8        41.8        49.7        57.9        70.6        81.3        97.5
Income Security (600):
    BA............................       -3.3  .........         1.8         3.3         5.9         8.5        10.9        15.2        16.3        20.5
    OT............................       -3.8       -1.3         0.2         1.4         3.8         6.3         8.6        12.8        13.8        18.0
Social Security (650):
    BA............................        4.6        8.9        14.2        20.1        26.6        33.9        41.9        50.5        60.0        70.5
    OT............................        4.6        8.8        14.0        19.9        26.3        33.6        41.5        50.1        59.6        70.0
    On-Budget:
        BA........................        7.3       15.7        24.1        35.6        49.6        65.8        83.8       113.0       137.3       160.1
        OT........................        7.3       15.7        24.1        35.6        49.6        65.8        83.8       113.0       137.3       160.1
    Off-Budget:
        BA........................        4.6        8.7        13.9        19.7        25.9        33.0        40.7        48.7        57.8        67.9
        OT........................        4.5        8.6        13.7        19.4        25.7        32.7        40.3        48.3        57.4        67.4
Veterans Benefits and Services
 (700):
    BA............................        5.4       14.3        11.1         8.2        14.0        16.1        18.3        26.1        21.2        29.3
    OT............................        5.6       13.6        10.8         7.9        13.9        15.9        18.1        25.9        20.8        29.0
Administration of Justice (750):
    BA............................       -3.2       -2.3        -2.5        -1.5         0.9         3.4         6.1         9.4        12.7        16.2
    OT............................        8.4        3.4         0.8         0.4         2.4         5.2         7.9        11.0        14.4        17.9
General Government (800):
    BA............................        8.7       10.2         8.1         9.8         8.7        10.9        13.2        17.1        21.2        25.6
    OT............................        8.2       11.7         8.9         8.9         8.0         9.2        11.2        15.0        19.9        23.3
Net Interest (900):
    BA............................        7.2       32.3        49.5        57.3        61.7        64.9        65.7        66.7        67.3        65.2
    OT............................        7.2       32.3        49.5        57.3        61.7        64.9        65.7        66.7        67.3        65.2
    On-budget:
        BA........................        7.1       26.7        42.5        52.9        61.7        70.0        77.3        85.1        93.1        99.7
        OT........................        7.1       26.7        42.5        52.9        61.7        70.0        77.3        85.1        93.1        99.7
    Off-Budget:
        BA........................        6.7       16.5        29.5        44.8        61.5        79.5        98.8       119.3       141.0       163.7
        OT........................        6.7       16.5        29.5        44.8        61.5        79.5        98.8       119.3       141.0       163.7
Allowances (920):
    BA............................         na         na          na          na          na          na          na          na          na          na
    OT............................         na         na          na          na          na          na          na          na          na          na
Undistributed Offsetting Receipts
 (950):
    BA............................        4.8       25.5        30.6        26.1        31.9        31.7        37.6        44.0        49.8        56.3
    OT............................        4.8       25.5        30.6        26.1        31.9        31.7        37.6        44.0        49.8        56.3
    On-Budget:
        BA........................        4.4       28.0        32.5        25.4        30.3        28.0        33.0        38.3        43.6        49.0
        OT........................        4.4       28.0        32.5        25.4        30.3        28.0        33.0        38.3        43.6        49.0
    Off-Budget:
        BA........................        6.6       14.8        22.1        29.4        38.8        47.9        57.6        69.0        76.7        88.2
        OT........................        6.6       14.8        22.1        29.4        38.8        47.9        57.6        69.0        76.7        88.2
--------------------------------------------------------------------------------------------------------------------------------------------------------



                             Reconciliation

                              ----------                              


    As provided in Section 310 of the Budget Act (2 U.S.C. 
641), the budget resolution instructs 14 authorizing committees 
to reconcile and report changes in law necessary to achieve the 
direct spending and revenue levels provided for in the budget 
resolution. The Budget Committee makes general assumptions 
about what each Committee will do to comply with its 
reconciliation instructions; however, the Committees have wide 
latitude to develop their legislation. The Budget Committee 
will report these changes to the House as two separate 
reconciliation measures, but will not substantively change the 
legislative language submitted to it by the various committees. 
The Budget Act gives the Budget Committee the authority to 
include reconciliation instructions in the budget resolution.
    The committees receiving a directive must increase or 
decrease spending by the specified amount, or in the case of 
revenue, increase or decrease revenue by the specified amount 
(the latter is almost exclusively a directive to the Ways and 
Means Committee). The committees may achieve the amounts 
specified in any manner they wish. When a directive is 
received, the committees hold a mark-up as they would on any 
other bill, but it is reported to the Budget Committee instead 
of the House. That committee then binds all the submissions 
together and reports it out of committee as a single bill--the 
Budget Committee may not make any changes in the submitted 
text, except the ministerial task of binding it together. The 
committees are given a deadline for submitting the bill to the 
Budget Committee.
    The reconciliation bill is protected in the Senate: It has 
an automatic time limit on debate and cannot be filibustered--
hence passage only requires 51 votes. A provision that does not 
increase or decrease spending (or revenue) violates the Byrd 
Rule, and may be removed from the bill, unless there are 60 
votes to waive the point of order. Reconciliation does not 
apply to discretionary spending, which is controlled by the 
Appropriations Committee.

                 Economic Growth Reconciliation Measure

    The first reconciliation bill is designed to stimulate 
economic growth, simplify the tax system, and make it more 
fair. The reconciliation instruction incorporates two separate 
directives: one to the Committee on Ways and Means and one to 
the Committee on Education and the Workforce. The Ways and 
Means Committee must report a measure by 11 April 2003, that 
will reduce taxes by $35.4 billion for fiscal year 2003, $112.8 
billion for fiscal year 2004, $387.7 billion from 2004 through 
2008, and $662.9 billion from 2004 through 2013. Because tax 
measures often include tax credits, the directive to the Ways 
and Means Committee includes the requirement that their 
submission must also increase direct spending by $4.4 billion 
for fiscal year 2003, $1.1 billion for fiscal year 2004, $17.4 
billion from 2004 through 2008, and $23.1 billion from 2004 
through 2013.
    The second directive requires the Committee on Education 
and the Workforce to increase direct spending on programs 
within its jurisdiction by $3.6 billion for fiscal year 2003. 
The committee is not required to include any policy assumed by 
the Budget Committee in its submission as long as it achieves 
the increases in direct spending contemplated by the directive.
    Both committees' direct spending submissions must be 
transmitted to the House Budget Committee by 11 April 2003.

             Elimination of Waste, Fraud and Inefficiencies

    The resolution also instructs 14 committees to report 
changes in programs within their jurisdiction to the Budget 
Committee by 18 July 2003. The intent of the instruction is to 
reduce instances of waste, fraud, and abuse in these program 
areas. The committees will choose their own methods of 
complying with the directives. The committees directed to 
produce these changes are as follows: Committee on Agriculture, 
Committee on Education and the Workforce, Committee on Energy 
and Commerce, Committee on Financial Services, Committee on 
Government Reform, Committee on House Administration, Committee 
on International Relations, Committee on the Judiciary, 
Committee on Resources, Committee on Science, Committee on 
Small Business, Committee on Transportation and Infrastructure, 
Committee on Veterans Affairs, and the Committee on Ways and 
Means. Each committee is required to reduce spending in 
programs, projects and activities within its jurisdiction by 1 
percent. The intent of these directives is to produce greater 
efficiency in Government programs. Consequently, the savings to 
be attained by this legislation will come from the elimination 
of waste, fraud, and abuse, and through greater efficiency in 
program utilization.
    For the second set of submissions, a special rule is 
established for the Energy and Commerce and Ways and Means 
Committees. It is intended to ensure that the two committees 
have maximum flexibility in modernizing Medicare, achieving 
prescription drug coverage, and in meeting their targets for 
mandatory savings. By reconciling both Medicare and the 
mandatory savings of each committee, the bill allows the 
committees to count any savings from Medicare reform towards 
their mandatory savings requirements. Conversely, if the 
committees achieve more savings than required by the budget 
resolution they can use it to augment their reconciliation 
instructions for Medicare.
    As a result of the shared jurisdiction of the two 
committees over Medicare, the $400 billion for Medicare 
modernization and prescription drug coverage was reconciled to 
both committees. In order to ensure that the committees achieve 
the required level of savings and do not effectively overspend 
the $400 billion for Medicare, the rule creates a point of 
order to prevent the two committees from bringing such a bill 
to the floor. Should such a situation arise, the Leadership 
will work with the committees to craft a bill in compliance 
with the overall levels of spending included in the budget 
resolution.
    The following table indicates the amounts required from 
each reconciled committee:

Fiscal Year 2004 Budget Resolution Reconciliation Instructions by House 
                         Authorizing Committee

  TABLE 16.--SUBMISSIONS PROVIDING FOR ECONOMIC GROWTH AND TAX SIMPLIFICATION AND FAIRNESS (DUE 11 APRIL 2003)
                                     [By fiscal year in millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                     2003        2004      2004-2008   2004-2013
----------------------------------------------------------------------------------------------------------------
Ways and Means:
    Revenues....................................................      35,420     112,785     387,719     662,874
    Outlays.....................................................       4,380       1,111      17,393      23,096
Education and Workforce:
    Budget Authority............................................       3,600  ..........  ..........  ..........
----------------------------------------------------------------------------------------------------------------


 SUBMISSIONS PROVIDING FOR THE ELIMINATION OF WASTE, FRAUD, AND ABUSE IN
                 MANDATORY PROGRAMS (DUE JULY 18, 2003)
   [By fiscal year in millions of dollars of outlays, unless otherwise
                                 noted]
------------------------------------------------------------------------
                                         2004      2004-2008   2004-2013
------------------------------------------------------------------------
Agriculture.........................        -618      -5,696     -19,171
Education and Workforce.............        -269      -2,675      -9,701
Energy and Commerce.................  ..........     105,482     289,436
Financial Services (Budget                   -13        -126        -144
 Authority).........................
Government Reform...................      -1,104     -10,680     -39,464
House Administration................          -5         -28         -91
International Relations.............        -161      -1,333      -4,605
Judiciary...........................         -88        -749      -2,475
Resources...........................         -40        -354      -1,137
Science.............................          -1          -6         -15
Small Business......................  ..........  ..........  ..........
Transportation and Infrastructure...        -192      -1,798      -6,087
Veterans' Affairs...................        -463      -4,347     -15,062
Ways and Means......................  ..........      65,213     138,223
------------------------------------------------------------------------



                     Section-by-Section Description

                              ----------                              


    The Budget Resolution establishes a budgetary framework, 
which includes aggregate levels of total new BA and outlays, 
total Federal revenues and the amount by which revenues should 
be changed by bills, the surplus or deficit, new BA and outlays 
for each major functional category, the debt held by the 
public, the debt subject to the statutory limit, and directives 
to authorizing committees.

  SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2004

    Subsection (a), in accordance with section 301(a) of the 
Congressional Budget Act of 1974, establishes the appropriate 
budgetary levels for the current year, fiscal year 2003, for 
the budget year, fiscal year 2004, and each of the 9 years 
following the budget year, fiscal years 2005 through 2013. The 
level for fiscal year 2003 replaces the level established for 
the House in H.Con.Res. 353 as passed by the House.
    Subsection (b) sets out the table of contents of the 
resolution.

                Title I--Recommended Levels and Amounts

              SECTION 101. RECOMMENDED LEVELS AND AMOUNTS

    Consistent with section 301 of the Congressional Budget Act 
of 1974, this section establishes the recommended levels for 
revenue, reduction in revenue, total new BA, total budget 
outlays, surpluses or deficits, debt held by the public, and 
the debt subject to the statutory limit. The recommended level 
of revenue operates as a floor against which all revenue bills 
are measured pursuant to section 311 of the Budget Act. 
Similarly, the recommended levels of new BA and budget outlays 
serve as a ceiling on the consideration of subsequent spending. 
The surplus or deficit levels reflect only on-budget outlays 
and revenue and hence do not reflect most outlays and receipts 
related to the Social Security program and certain Postal 
Service operations. The debt subject to statutory limit 
aggregates refers to the portion of gross Federal debt issued 
by the Treasury to the public or another Government fund or 
account, whereas the debt held by the public is the amount of 
debt issued and held by entities or individuals other than the 
U.S. Government.

                SECTION 102. MAJOR FUNCTIONAL CATEGORIES

    As further required by section 301(a) of the Budget Act, 
section 102 establishes the appropriate budgetary levels for 20 
functional categories for the current fiscal year, 2003, the 
budget year, fiscal year 2004, and fiscal years 2004 through 
2013. The amount of spending included in any function level for 
fiscal year 2004 is further described in the ``Function-by-
Function Presentation'' in this report. The functions include 
the following categories:

050 National Defense

100 Homeland Security

150 International Affairs

250 Science, Space and Technology

270 Energy

300 Natural Resources and Environment

350 Agriculture

370 Commerce and Housing Credit

400 Transportation

450 Community and Regional Development

500 Education, Training, Employment and Social Services

550 Health

570 Medicare

600 Income Security

650 Social Security

700 Veterans Benefits

750 Administration of Justice

800 General Government

900 Net Interest

920 Allowances

950 Undistributed Offsetting Receipts

                        Title II--Reconciliation

      SECTION 201. RECONCILIATION IN THE HOUSE OF REPRESENTATIVES

    As provided in Section 310 of the Congressional Budget Act 
of 1974, the budget resolution includes reconciliation 
instructions to a total of 14 authorizing committees to submit 
to the House Budget Committee changes in law necessary to 
achieve the direct spending and revenue levels in the budget 
resolution. The Budget Committee will report these changes to 
the House as two separate reconciliation measures, but will not 
substantively change the legislative language submitted to it 
by the various committees.
    Subsection (a) directs two committees to report changes in 
programs within their jurisdiction to the House Budget 
Committee by 11 April 2003. The Committee on Ways and Means 
must report a measure sufficient to reduce revenue by $35.4 
billion for fiscal year 2003, $112.7 billion for fiscal year 
2004, $387.7 billion from 2004 through 2008, or $662.9 billion 
from 2004 through 2013; this submission must also increase 
direct spending by $4.4 billion for fiscal year 2003, $1.1 
billion for fiscal year 2004, $17.4 billion from 2004 through 
2008, or $662.9 billion from 2004 through 2013. The subsection 
also directs the Committee on Education and the Workforce to 
increase direct spending on programs within its jurisdiction by 
$3.6 billion for fiscal year 2003.
    Subsection (b) directs 14 committees to report changes in 
programs within their jurisdiction to the Budget Committee by 
18 July 2003. The committees which must submit legislative 
language to the Budget Committee are as follows: Committee on 
Agriculture, Committee on Education and the Workforce, 
Committee on Energy and Commerce, Committee on Financial 
Services, Committee on Government Reform, Committee on House 
Administration, Committee on International Relations, Committee 
on the Judiciary, Committee on Resources, Committee on Science, 
Committee on Small Business, Committee on Transportation and 
Infrastructure, Committee on Veterans' Affairs, and the 
Committee on Ways and Means.
    These committees are essentially reconciled for a 1-percent 
spending reduction in programs, projects, or activities within 
their jurisdiction in fiscal year 2004, the period from fiscal 
year 2004 through 2008, and the period from fiscal year 2004 
through 2013. The committees may make whatever changes in the 
law they deem appropriate as long as they achieve the specified 
amount of savings for the three periods.
    The intent of these directives is to produce greater 
efficiency in Government programs. Consequently, the savings to 
be attained by this legislation will come from the elimination 
of waste, fraud, and abuse, and through greater efficiency in 
program utilization. (Please see Table 16 in the Reconciliation 
section of this report for the specific amount this percentage 
equals and that is reconciled to each committee).
    This subsection adds a special rule for the Energy and 
Commerce and Ways and Means Committees, which were reconciled a 
net number consisting of required savings and funding for a 
Medicare Inititiative. It was reconciled to both committees 
because they both have jurisdiction over Medicare.

           Title III--Reserve Funds and Contingency Procedure

    Pursuant to the Congressional Budget Act of 1974, the 
resolution provides the chairman of the House Budget Committee 
with the authority to increase the budget aggregates, and in 
some cases the allocations, for specified legislation whose 
costs are not assumed in the allocation and/or aggregates. 
Absent these adjustments, such legislation reported by the 
committees of jurisdiction would exceed the applicable 
committee's allocations in violation of section 302(f) of the 
Budget Act. This would subject the measure to a point of order 
and preclude the House from considering it. Budget resolutions 
have long included these adjustments pursuant to section 
301(b)(4) of the Budget Act, which permits the budget 
resolution to include ``such other matters, and require such 
other procedures, relating to the budget, as may be appropriate 
to carry out the purposes of this Act.'' Each of the reserve 
funds established under this title apply to reported bills, 
amendments, and conference reports.

     Subtitle A--Reserve Fund for Legislation Assumed in Aggregates

                 SECTION 301. RESERVE FUND FOR MEDICAID

    This section creates a reserve fund that allows the 
chairman of the House Budget Committee to adjust the allocation 
of BA and outlays to the Committee on Energy and Commerce for 
any measure that combines funding for Medicaid and the State 
Children's Health Insurance Program [SCHIP]. The purpose of 
this reserve fund is to ensure as a condition for setting any 
increase in the allocation, the bill achieves long term 
savings. The adjustments in the allocations may not exceed $3.3 
billion in new BA and outlays for fiscal year 2004; and $8.9 
billion in new BA and outlays for the period of fiscal years 
2004 through 2008.

                SECTION 302. RESERVE FUND FOR BIOSHIELD

    This section creates a reserve fund that allows the 
chairman of the House Budget Committee to adjust the allocation 
of BA and outlays to the appropriate committees, for a bill 
that establishes a program to accelerate the research, 
development, and purchase of biomedical threat countermeasures. 
The adjustment was structured to accommodate either a 
discretionary or mandatory program depending on the type of 
program. For the adjustment to take place, the measure must 
provide new mandatory BA to carry out the program. If this is 
the case, the adjustment made by the Budget Committee chairman 
may be no more than $890 million in new BA for fiscal year 
2004, and $3.4 billion in new BA for fiscal years 2004 through 
2008. The adjustment must also be made for the outlays flowing 
from the BA. Alternatively an adjustment may be made if the 
appropriate committee authorizes discretionary new BA to carry 
this program out, and the Committee on Appropriations also 
reports a bill providing new BA for that purpose. In this case, 
the adjustment will be made for no more than $890 million in BA 
for fiscal year 2004 and the resulting outlays.
    If the program includes both mandatory and discretionary 
components or if two bills are enacted, the maximum adjustment 
the committee may make in fiscal year 2004 is $890 million in 
BA and outlays.

 Subtitle B--Contingency Procedure for Legislation Not Assumed in the 
                               Aggregates

       SECTION 311. RESERVE FUND FOR HIGHWAYS AND HIGHWAY SAFETY

    Transportation spending has a unique character. Typically, 
a committee has jurisdiction over a program and the spending 
associated with it is defined as either mandatory or subject to 
annual appropriations. If a committee expands a mandatory 
program, the BA is considered to be mandatory and the outlays 
flowing therefrom are also mandatory. If an authorizing 
committee increases the authorization level for a program that 
is subject to annual appropriations, it is not scored as BA, 
but rather the Appropriations Committee must report a 
subsequent measure funding the program. It is at that time that 
the BA is scored and characterized as discretionary. The 
outlays flowing therefrom are also considered to be 
discretionary.
    Transportation spending is different: The authorizing 
committee, the Committee on Transportation and Infrastructure, 
has programs that spend out of the Highway Trust Fund, in which 
BA is defined as mandatory. In this particular case, the form 
of BA is termed ``contract authority.'' The outlays flowing 
therefrom, however, are characterized as discretionary, and are 
scored against the Appropriations Committee. That committee 
includes in its annual transportation appropriations act 
language known as ``obligation limitations.'' These limitations 
may constrain the amount of outlays flowing from the mandatory 
BA, depending on their level. Since this is the case, the 
reserve fund included in this resolution has two components: 
subsection (a) allows additional mandatory BA for highway and 
transit programs to be provided by the Committee on 
Transportation and Infrastructure; and subsection (b) allows 
additional discretionary outlays to be provided by the 
Appropriations Committee.
    Subsection (a) creates a reserve fund that allows the 
chairman of the House Budget Committee to adjust the allocation 
of BA to the Committee on Transportation and Infrastructure for 
any measure that reauthorizes surface transportation programs 
and provides new BA for highway and transit spending. The 
Budget Committee chairman may make an adjustment to its 
allocation if the Transportation Committee reports a measure 
that exceeds the amounts specified in section 311. The 
adjustment may only be made if it is offset by changes in law, 
either included in same measure, or by previously enacted 
legislation. The changes in law may effect either direct 
spending or receipts must be appropriated to the Highway Trust 
Fund. The adjustment may be made in the BA allocation for 
fiscal year 2004 and the 5 year period, but the additional 
resources must offset the additional BA and corresponding 
outlays in each year.
    Subsection (b) creates a reserve fund that allows the 
chairman of the House Budget Committee to adjust the allocation 
of outlays to the Committee on Appropriations for any measure 
that sets total obligation limitations greater than $38.5 
billion for fiscal year 2004 for spending from the Highway 
Trust Fund. In addition, the amount of the adjustment must be 
offset by increases in resources dedicated to the Highway Trust 
Fund in fiscal year 2004 as previously referred to in 
subsection (a).

      Subtitle C--Implementation of Reserve and Contingency Funds

  SECTION 321. APPLICATION AND EFFECTS OF CHANGES IN ALLOCATIONS AND 
                               AGGREGATES

    This section sets forth the procedures for making 
adjustments pursuant to the reserve funds included in this 
resolution. Subsection (a)(1) and (2) provide that the 
adjustments may only be made during the interval that the 
legislation is under consideration and do not take effect until 
the legislation is actually enacted. This is approximately 
consistent with the procedures for making adjustments for 
various initiatives under section 314 of the Congressional 
Budget Act.
    Subsection (a)(3) provides that in order to make the 
adjustments provided for in the reserve funds, the chairman of 
the House Budget Committee is directed to insert these 
adjustments in the Congressional Record.
    Subsection (b) clarifies that any adjustments made under 
any of the reserve funds in the resolution have the same effect 
as if they were part of the original levels set forth in 
section 101. Therefore the adjusted levels are used to enforce 
points of order against legislation inconsistent with the 
allocations and aggregates included in the concurrent 
resolution on the budget.
    Subsection (c) clarifies that the House Budget Committee 
determines the levels and estimates used to enforce points of 
order, as is the case for enforcing budget-related points of 
order, and the determination is made pursuant to section 312 of 
the Budget Act. This section of the Budget Act provides the 
chairman of the Budget Committee with the authority to advise 
the chairman of the House on the appropriate levels and 
estimates related to legislation being considered on the floor.

                      Title IV--Budget Enforcement

          SECTION 401. RESTRICTIONS ON ADVANCE APPROPRIATIONS

    Section 401 imposes a limitation on advance appropriations 
similar to a provision included in the last several budget 
resolutions. It effectively limits which programs may receive 
an advance appropriation and an overall amount of advanced 
appropriations. It is enforced by prohibiting the managers of 
any appropriations measure from accepting advance 
appropriations in a conference committee unless a separate vote 
on the spending is taken by the whole House.
    It establishes this procedural mechanism with regard to any 
advance appropriation for fiscal year 2004 and any year 
thereafter with two exceptions: First, advance appropriations 
may be provided for the accounts in the appropriation bills 
under the section ``Accounts Identified Advanced 
Appropriations'' in the Joint Statement of Managers on any 
Conference Report on the Budget Resolution. The list is 
expected to be the same as that which appears in this report in 
the section ``Additional Report Language'' and with the same 
heading. In addition, total advance appropriations for these 
accounts may not exceed $23,178,000,000 in BA for fiscal year 
2005.
    Subsection (c) defines an ``advance appropriation'' as any 
new discretionary BA making general appropriations or 
continuing appropriations for fiscal year 2004 that first 
becomes available for any fiscal year after 2004.
    This limitation may be enforced by any member making a 
point of order at the appropriate time against any advance 
appropriations not falling within an exception or exceeding the 
overall limit. The effect of a point of order under this 
section, if sustained by the Chair, is to cause the 
appropriation(s) to be stricken from the bill or joint 
resolution. The bill itself, however, would continue to be 
considered in the House.

 SECTION 402. COMPLIANCE WITH SECTION 13301 THE BUDGET ENFORCEMENT ACT 
                                OF 1990

    This section provides authority to include the 
administrative expenses related to Social Security in the 
allocation to the Appropriations Committee. This language is 
necessary to ensure that the Appropriations Committee retains 
control of administrative expenses through the Congressional 
budget process.
    In the 106th Congress, the joint Leadership of the House 
and Senate Budget Committees decided to discontinue including 
administrative expenses in the budget resolution. This change 
was intended to make the budget resolution consistent with 
CBO's baseline which does not include administrative expenses 
for Social Security.
    At the same time, the House Budget Committee believed that 
these expenses should continue to be reflected in the 302(a) 
allocations to the Appropriations Committee. Absent a waiver of 
section 302(a) of the Budget Act, the inclusion of these 
expenses in the allocation is construed as violating 302(a) of 
the Budget Act which states that the allocations must reflect 
the discretionary amounts in the budget resolution (and 
arguably, section 13301 of the Budget Enforcement Act, which 
states that Social Security benefits and revenues are off-
budget).


                      Congressional Budget Process

                              ----------                              


    The spending and revenue levels established in the budget 
resolution are executed through two parallel, but separate, 
mechanisms: allocations to the appropriations and authorizing 
committees, and reconciliation directives to the authorizing 
committees. The budget resolution may include instructions 
directing the authorizing committees to report legislation 
complying with entitlement, revenue, deficit or debt reduction 
targets. The report accompanying the budget resolution 
distributes or ``allocates'' amounts set forth in the budget 
aggregates for programs, projects and activities to the 
Appropriations Committee for annual appropriations and the 
authorizing committees if they have permanent or multiyear 
spending authority. For fiscal year 2004, the budget resolution 
reported from the Budget Committee includes certain 
reconciliation instructions.
    As required under Section 302(a) of the Congressional 
Budget Act of 1974, the discretionary spending levels 
established in the budget resolution are allocated to the 
Appropriations Committee and the mandatory spending levels are 
allocated to each of the authorizing committees with mandatory 
spending authority. These levels are enforced through points of 
order as discussed in the section ``Enforcing the Budget 
Resolution.'' Amounts provided under ``current law'' encompass 
programs that affect direct spending entitlement and other 
programs that have spending authority or offsetting receipts. 
Amounts subject to discretionary action refer to programs that 
require subsequent legislation to provide the necessary 
spending authority. Amounts provided under 
``reauthorizations''' reflect amounts assumed to reauthorize 
expiring mandatory programs.
    The report accompanying the budget resolution provides 
allocations of BA and outlays for each of the authorizing 
committees for the current year (fiscal year 2003), the budget 
year (fiscal year 2004), the 5-year period (fiscal years 2004 
through 2008) and the 10-year period covered by the Budget 
Resolution. Section 302 of the Congressional Budget Act of 1974 
(as modified by the Balanced Budget Act of 1997) requires that 
allocations of BA be provided in the budget resolution for the 
first fiscal year and at least the 4 ensuing fiscal years 
(except for the Committee on Appropriations which only receives 
an allocation for the budget year).
    The budget resolution for fiscal year 2004 includes 10-year 
allocations, but for enforcement purposes, each bill coming to 
the floor of the House of Representatives will be assessed as 
to what budgetary implications it has over 5 years.

                        Appropriations Committee

    The report accompanying the budget resolution allocates a 
lump sum of discretionary BA assumed in the resolution and 
corresponding outlays to the Committee on Appropriations.

                     TERM OF THE 302(A) ALLOCATION

    The allocation to the Appropriations Committee is for the 
fiscal year commencing on 1 October 2003. Unlike the 
authorizing committees, the Appropriations Committee does not 
receive a 5-year allocation of BA and outlays.

                           302(B) ALLOCATION

    Upon receiving its 302(a) allocation, the Appropriations 
Committee is required to divide the allocation among its 13 
subcommittees. The amount each subcommittee receives 
constitutes its allocation pursuant to section 302(b) of the 
Congressional Budget Act.

                         Authorizing Committees

    The authorizing committees are allocated a lump sum of new 
BA along with the corresponding outlays. A committee is 
allocated this BA for the programs in its jurisdiction that are 
implemented by the Executive Branch pursuant to current law. In 
addition, the committees may be allocated additional BA 
categorized as subject to discretionary action. This occurs 
when the budget resolution assumes a new or expanded mandatory 
program or a reduction in an existing program. Such spending 
authority must be provided through subsequent legislation and 
is not controlled through the annual appropriations process.

                     TERM OF THE 302(A) ALLOCATION

    Since the spending authority for the authorizing committees 
is multi-year or permanent, the allocations are for the 
forthcoming budget year commencing on 1 October and a 5-year 
total for fiscal years 2004 through 2008.
    The authorizing committees are provided a single allocation 
of new BA (divided between current law and discretionary 
action) that is not provided through annual appropriations. 
They are not required to file 302(b) allocations. Bills first 
effective in fiscal year 2003 will be measured against the 
revised level for that year included in the fiscal year 2004 
Budget Resolution, and also the 5-year period of fiscal year 
2003 through 2007.

                              Adjustments

    In addition to the adjustments made under the Congressional 
Budget Act, the Budget Resolution also provides the chairman of 
the House Budget Committee with the authority to make certain 
adjustments in the aggregates and allocations, in certain 
circumstances.

 In section 301, chairman of the House Budget Committee 
    is given the authority to make adjustments in the 
    allocation of BA to the Committee on Energy and Commerce if 
    the committee reports a bill that combines the funding of 
    the Medicaid and the State Children's Health Insurance 
    Program (SCHIP), excluding the funding for Medicaid 
    mandatory eligibility groups, and makes such funds 
    available to the States in separate allotments for acute 
    and long-term care.

 In section 302, the chairman of the House Budget 
    Committee is given the authority to make adjustments in the 
    allocation of BA to the appropriate committee if the 
    committee reports a bill that for a bill that establishes a 
    program to accelerate the research, development, and 
    purchase of biomedical threat countermeasures.

 In section 311, the chairman of the House Budget 
    Committee is given the authority to make adjustments in the 
    allocation of BA to the Committee on Transportation and 
    Infrastructure for a measure increasing highway spending, 
    but only if they are either offset by changes in law either 
    in that measure, or previously enacted legislation. The 
    changes in law must dedicate the additional resources to 
    the Highway Trust Fund. It also provides for an adjustment 
    to accommodate the additional outlays that would flow from 
    the mandatory BA. Most discretionary spending is 
    implemented by appropriating BA, but in the Highway 
    Category, BA is provided on the mandatory side. The outlays 
    resulting therefrom are discretionary and may be restricted 
    through the use of ``obligation limits'' included in 
    appropriation acts. Again, these outlays must be offset by 
    the changes in law included either in the Transportation's 
    Committee's measure, or previously enacted legislation.

    The authority for the chairmen of the Budget Committees to 
make adjustments pursuant to Section 314 of the Congressional 
Budget Act of 1974 has expired. Prior to this, emergencies 
could be designated in legislation, and this would cause an 
immediate adjustment in the reporting committees allocation, 
essentially allowing for the additional spending without it 
being specifically budgeted for in the budget resolution.

                              Enforcement

    In order to enforce these allocations, Members may raise a 
point of order against spending legislation that exceeds a 
committee's allocation (see the section titled ``Enforcing the 
Budget Resolution'' in this report). The authorizing committees 
are given 5-year allocations, and hence the enforcement period 
for spending under section 302(f) of the Congressional Budget 
Act will be for the 5 years commencing from the year in which 
the committee's legislation is first effective.


                   Statutory Controls Over the Budget

                              ----------                              


    For the second time since the mid-1980s, the Congress and 
the President are entering a budget cycle in which there are no 
budget controls enforced through automatic spending cuts. Both 
the discretionary spending limits [caps] and the pay-as-you-go 
[PAYGO] rule for entitlement and tax legislation, adopted in 
1990 and most recently extended in 1997, expired at the end of 
fiscal year 2002. The Government has returned to a time when 
the only comprehensive control over budgeting is the 
Congressional Budget and Impoundment Control Act of 1974. A 
reasonable argument may be made that this is a desirable 
situation, that it is preferable for Congress and the President 
to make no attempt to develop a joint budgetary framework 
before considering individual spending and tax bills. Some 
Members may believe the only true budgetary framework is the 
sum of all the appropriations, tax, and entitlement measures 
enacted in a given session of Congress. Further, it may not 
make sense to extend budget controls that, in recent years, 
have been routinely circumvented by both Congress and the 
administration.
    The possible extension of the statutory controls presents 
opportunities, but also may evoke concerns and create 
difficulties. When first enacted, and through the middle part 
of the last decade, they served as a useful tool for control 
over budgetary pressures. Yet, once surpluses were attained in 
1999, the statutory controls proved ineffective. The controls 
were written at a time of deficits and never envisioned an 
environment with budget surpluses. Now that deficits have 
returned, it becomes necessary to consider whether Congress 
should revive a statutory regimen of budgetary discipline to 
add to the existing Congressional process. There are three 
basic options: Do nothing and rely on the Congressional 
process; revive PAYGO and the caps in largely the same 
structure as first envisioned in 1990; or create a new process 
of budgetary disciplines, perhaps building on the previous 
structures.
    The administration has stated its desire to extend both 
PAYGO and the caps for 2 years. The circumstances are different 
than in the time of previous extensions: In 1990, 1993 and 
1997, the period of both PAYGO and the caps was for 5 years 
rather than two. In addition, in the 1997 extension, PAYGO 
effects were extended for an additional 5 years, through 2006, 
to capture out year spending and revenue implications and to 
prevent any attempts to push budget effects beyond the PAYGO 
window in order to avoid finding offsets.
    The committee agrees there are compelling arguments for 
reestablishing statutory budget controls. The principal reason 
is the disappearance of budget surpluses in the wake of 11 
September and a sluggish economy. As in the late 1980s and 
early and mid-1990s, policy makers may need the discipline 
imposed by fixed caps on appropriations and a pay-as-you-go 
rule for new or expanded entitlements. Moreover, the long-term 
pressures on the budget arising from the aging of the baby boom 
generation and skyrocketing health costs call for a mechanism 
such as PAYGO to keep mandatory initiatives within manageable 
limits.
    When first established, both PAYGO and the caps were set 
for 5 years. This 5-year period was again used during their 
extension in both 1993 and 1997. For the caps, one recurring 
difficulty has been the inability to adhere to the spending 
limits in the last year, or last several years. The first 
extension in 1993 revised the caps after 3 years. The second 
extension lasted longer and the caps were largely adhered to 
from fiscal year 1994 through 1997, indeed overall 
discretionary spending was in certain years well below the cap 
level. The cap, however, for fiscal year 1998, was replaced by 
a new cap during the extension of the Budget Enforcement Act 
included in the Balanced Budget Act of 1997. This extended the 
cap regimen through fiscal year 2002. During this period, the 
discretionary cap was ineffective as a tool for controlling 
discretionary spending.
    However, a 2-year extension has difficulties as well--
primarily insofar as predicting what the budget needs will be 
over that time period, and the possible disparity between a 
statutory cap and the Congressional Budget Resolution.
    Another difficulty that arose throughout the lifetime of 
the discretionary spending limits was the inconsistency with 
levels provided for in the budget resolution passed annually 
pursuant to the Congressional Budget Act. In that resolution, 
an allocation is provided to the Appropriations Committee, that 
typically diverged greatly from the statutory level.
    Similar problems have arisen with respect to the PAYGO 
statute. When it was first established, deficits were a chronic 
problem. The legislation did not anticipate the surpluses that 
occurred in the late 1990s, and could not accommodate the 
desire on the part of policymakers to reduce revenue and 
increase mandatory spending without offsetting the costs. In 
the last years PAYGO was in effect, substantial reductions in 
revenue and increases in entitlement spending occurred. During 
this time, the scorecard was periodically set back to zero to 
avoid large sequesters.
    When large balances remain on the PAYGO scorecard, it 
becomes an ineffective tool to enforce fiscal discipline. The 
magnitude of a sequester that would be required when those 
large balances exist is unrealistic because no Congress would 
allow it to take place--when the PAYGO scorecard was reset to 
zero the final time, there were $571 billion worth of balances 
over 5 years. It is questionable, under the terms of the 
Deficit Control Act, whether such a massive sequester could 
even take place, since the sequester base, the programs subject 
to an across the board reduction, may not be sufficiently large 
to erase the balance, even to the point of eliminating all 
programs in the base.
    This raises a similar issue: The exemption of most programs 
from the sequester base makes the threat of a sequester too 
draconian to the subject programs and hence less likely to 
occur.
    These problems associated with the PAYGO system are not 
insuperable, and do not gravitate, necessarily, against its 
extension. Rather they are issues that need to be considered, 
and, perhaps by refining how PAYGO works, could be resolved.
    The Committee concurs with those who lament Congress' 
failure to adhere to the caps and PAYGO. Clearly caps and PAYGO 
cannot substitute for making the difficult choices necessary to 
put the budget back into surplus and on a path toward 
eliminating the public debt. Still, a new statutory process 
along the lines of PAYGO and caps can augment the efforts to 
impose budgetary discipline and to focus attention on the need 
for spending control and deficit reduction.


                           Public Debt Limit

                              ----------                              


    The eventual adoption of this concurrent resolution by the 
two Houses would result in the engrossment of a House joint 
resolution adjusting the level of the statutory limit on the 
public debt pursuant to rule XXVII.


                         Votes of the Committee

                              ----------                              


    Clause 3(b) of House Rule XIII requires each committee 
report to accompany any bill or resolution of a public 
character, ordered to include the total number of votes cast 
for and against on each roll call vote, on a motion to report 
and any amendments offered to the measure or matter, together 
with the names of those voting for and against. Listed below 
are the roll call votes taken in the House Budget Committee on 
the Concurrent Resolution on the Budget for Fiscal Year 2004.
    On 12 March 2003 the committee met in open session, a 
quorum being present. The committee adopted and ordered 
reported the Concurrent Resolution on the Budget for fiscal 
year 2004. The following votes were taken in committee:
    Mr. Shays asked unanimous consent that the chairman be 
authorized, consistent with clause 4 of House Rule XVI, to 
declare a recess at any time during the committee meeting.
    There was no objection to the unanimous consent request.
    Chairman Nussle asked unanimous consent: to dispense with 
the first reading of the budget aggregates, function levels, 
and other appropriate matter; that the aggregates, function 
totals, and other appropriate matter be open for amendment; and 
that amendments be considered as read.
    There was no objection to the unanimous consent requests.
    The following votes were taken by the committee:
    1. Mr. Baird made a motion to adjourn.

                               VOTE NO. 1


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,         ..........      X      ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........  ..........  ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........  ..........  ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........  ..........  ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........  ..........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The motion made by Mr. Baird was not agreed to by a vote of 
16 ayes and 21 noes.
    2. Mr. Moran offered an amendment to adjust the appropriate 
revenue, BA, and outlays in the chairman's mark to increase the 
amount of tax relief in fiscal year 2003, to halve the size of 
the tax relief over all, and to increase spending to implement 
an economic stimulus plan. The adjustments are by the following 
amounts: BA: 2003: $49; outlays: 2003: $49, 2004: 0; 2005: 0.0; 
2006: -$1; 2007: -$1; 2008: -$1; 2009: -$1 2010: -$1; 2011: -$1 
20012: -$1 2013: -$1; Revenues: 2003: -$67, 2004: $70; 2005: 
$60; 2006: $46; 2007: $36; 2008: $35;: 2009:$35; 2010: $35; $; 
2011: $99; 2012: $151; 2013: $159; (billions for fiscal year).

                               VOTE NO. 2


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........  ..........  ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER          ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to on a roll call vote of 15 
ayes and 23 noes.
    3. Mr. Moore offered an amendment to adjust the appropriate 
the levels of revenue the chairman's mark to halve the size of 
the tax relief over all so that publicly held debt is reduced 
in 2009. The adjustments are by the following amounts: In 
revenues: 2003: $20; 2004: $59; 2005: $53; 2006: $44; 2007: 
$34; 2008: $34; 2009: $34; 2010: $34; 2011: $98; 2012: $150; 
2013: $158; (billions for fiscal year).
    The amendment also included a section that prevented Rule 
XXVII, related to the statutory debt limit, would not apply to 
the budget resolution for fiscal year 2004 or any future budget 
resolutions.

                               VOTE NO. 3


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........  ..........  ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 18 
ayes and 23 noes.
    4. Mr. Spratt offered an amendment reversing the dates of 
the reconciliation instructions included in the legislative 
text of the budget resolution to require the spending reduction 
reconciliation legislation to be submitted to the Budget 
Committee by 11 April 2003 and the tax related legislation to 
be submitted by 18 July 2003.

                               VOTE NO. 4


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........  ..........  ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........  ..........  ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 18 
ayes and 22 noes.
    5. Mrs. Capps offered an amendment to strike the reserve 
fund providing for Medicare Modernization and Prescription 
Drugs and insert in lieu thereof a new reserve fund providing a 
total of $600 billion over 10 years for a prescription drug 
benefit under the Medicare program under Title XVIII of the 
Social Security Act, that would be voluntary, comprehensive, 
affordable, accessible and universally available. It further 
provided for a $200 billion increase for the prior benefit 
should savings be enacted by the Ways and Means Committee to 
offset that cost.
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
would be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                               VOTE NO. 5


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD           ..........  .........       X
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........  ..........
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to agreed to by a roll call 
vote of 16 ayes, 23 noes, and 1 member voting present.
    6. Mr. Cooper offered an amendment to strike the 
reconciliation instruction to the Ways and Means Committee and 
to instruct that committee as follows: ``The Committee on Ways 
and Means. The House Committee on Ways and Means shall report 
changes in laws within its jurisdiction that provide direct 
spending sufficient to reduce the level of direct spending for 
that committee by $5,705 million in outlays for fiscal year 
2004, $14,880 million in outlays for the period of fiscal years 
2004 through 2008, and $46,859 million in outlays for the 
period of fiscal years 2004 through 2013.'' It also required a 
change in the amounts of BA and outlays in each function 
applicable, and in the aggregate accordingly.
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                               VOTE NO. 6


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 19 
ayes and 24 noes.
    7. Ms. Majette offered an amendment to strike the 
reconciliation instruction to the Education and Workforce 
Committee included in section 201(A)(2)(B) of the legislative 
text of the budget resolution. It also increased BA and outlays 
for Function 500 to reflect an increase of the maximum Pell 
Grant award to $4500, to increase spending on certain education 
programs, and increase funds for No Child Left Behind programs 
such as Improving Teacher Quality, Title I (Education for the 
Disadvantaged), and the 21st Century Community Learning Centers 
after-school program. The adjustments are by the following 
amounts: BA: 2003: $7.8; outlays: 2003: $.663, 2004: 0; 2005: 
$5.7; 2006: $1.2; 2007: $.202; (in billions for fiscal years).
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                               VOTE NO. 7


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 19 
ayes and 24 noes.
    8. Ms. Hooley offered an amendment to increase the BA and 
outlays in Function 450 to reflect an increase in funding for 
grants for first responders through the Department of Homeland 
Security. The levels are as follows: BA: 2003: $2.2; outlays: 
2003: $.990; 2004: $.660; 2005: $.550; (in billions for fiscal 
year).
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                               VOTE NO. 8


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER          ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 18 
ayes and 24 noes.
    9. Ms. Baldwin offered an amendment to increase the BA and 
outlays in functions 550 and 250 to reflect increased funding 
for scientific research. The levels are as follows: BA for 
Function 550: 2004: $3546; outlays: 2004: $1028; 2005: $1843; 
2006: $390; 2007: $177; 2008: $35. BA for Function 250: 2004: 
$1000; outlays: 2004: $509; 2005: $369; 2006: $71; 2007: $26; 
2008: $8; (millions for fiscal year).
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                               VOTE NO. 9


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD           ..........  .........       X
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER          ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote 17 
ayes, 24 noes, and 1 member voting present.
    10. Ms. Hooley offered an amendment to increase the BA and 
outlays in functions 500 to reflect increased funding to 
reflect the raising of the Federal share of special education 
to 40 percent. The levels are as follows: BA: 2004: $2.151; 
outlays: 2004: $.043; 2005: $1.355; 2006: $.645; 2007: $.108 
(billions for fiscal year).
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                              VOTE NO. 10


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 17 
ayes and 24 noes.
    11. Ms. DeLauro offered an amendment to strike the 
reconciliation instruction to the Resource Committee and change 
all other instructions accordingly. The amendment reflected the 
assumption that opening the coast plain of Arctic National 
Wildlife Refuge to oil exploration would be specifically 
rejected.

                              VOTE NO. 11


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 17 
ayes and 25 noes.
    12. Mr. Emanuel offered an amendment to increase BA and 
outlays for Function 300 to reflect an increase in funding for 
natural resources and environmental protection programs. BA: 
2004: $1,213; 2005: $757; 2006: $887; outlays: 2004: $365; 
2005: $503; 2006: $902; 2007: $567.; 2008: $433; 2009: $89 
(millions for fiscal year).
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.
    It further added a sense of the Congress supporting an 
extension of the caps on conservation at the levels P.L. 106-
291.

                              VOTE NO. 12


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 18 
ayes and 24 noes.
    13. Ms. DeLauro offered an amendment to increase BA and 
outlays for Function 600 to reflect funding to expand the 
number of low-income working families who receive child care 
assistance for which they are eligible through the Child Care 
and Development Fund. The levels are as follows: BA: 2004: 
$1,563; outlays: 2004: $1,172; 2005: $250; 2006: $94; 2007: 
$31.; 2008: $16; (millions for fiscal year).
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                              VOTE NO. 13

    Voice vote: No.
    The amendment was not agreed to by voice vote.
    14. Ms. Hooley offered an amendment to strike the 
reconciliation instruction to the Veterans' Resource Committee. 
It also provided for an increase in Function 700 to reflect 
increased funding for veterans compensation, pensions, life 
insurance, and education. In mandatory BA: 2004: $463; 2005: 
$700; 2006: $824; 2007: $960; 2008: $1,400; 2009: $1,770; 2010: 
$2,190; 2011: $2,360; 2012: $2,120; 2013: $2,275; in mandatory 
outlays: 2004: $463; 2005: $700; 2006: $824; 2007: $960; 2008: 
$1,400; 2009: $1,770; 2010: $2,190; 2011: $2,360; 2012: $2,120; 
2013: $2,275; in discretionary BA: 2004: 1844; in discretionary 
outlays: 2004: $1,295; 2005: $347; 2006: $183; 2007: $5. The 
amendment also provided for an increase in Function 600 to 
reflect the elimination of the reduction in current law in the 
military survivor benefit annuity from 55 percent to 35 percent 
of retired pay at age 62. In mandatory BA: 2004: $10; 2005: 
$127; 2006: $323; 2007: $644; 2008: $947; 2009: $996; 2010: 
$1,046; 2011: $1,095; 2012: $1,142; 2013: $1,189; in mandatory 
outlays: 2004: $10; 2005: $127; 2006: $323; 2007: $644; 2008: 
$947; 2009: $996; 2010: $1,046; 2011: $1,095; 2012: $1,142; 
2013: $1,189; (all figures in millions for fiscal year).
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                              VOTE NO. 14


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........  ..........  ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE          X      ..........
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 19 
ayes and 22 noes.
    15. Mr. Kind offered an amendment increase BA and outlays 
for Function 570 to reflect continuation of current Medicare 
payment policies for inpatient services to rural hospitals. BA: 
2004: $.6; 2005: $.6; 2006: $.7; 2007: $.7; 2008: $.8; 2009: 
$.8; 2010: $.9; 2011: $.9; 2012: $1.0; 2013: $1.1; in mandatory 
outlays: 2004: $.6; 2005: $.6; 2006: $.7; 2007: $.7; 2008: $.8; 
2009: $.8; 2010: $.9; 2011: $.9; 2012: $1.0; 2013: $1.1; 
(billions for fiscal year).
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                              VOTE NO. 15


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 18 
ayes and 24 noes.
    16. Mr. Lewis offered an amendment to increase BA and 
outlays for Function 600 to reflect funding for HOPE VI, a 
program for revitalizing distressed housing. The levels are as 
follows: BA: 2004: $574; outlays: 2004: $0; 2005: $11; 2006: 
$75; 2007: $115.; 2008: $115; 2009: $115; 2010: $115 (millions 
for fiscal year).
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                              VOTE NO. 16


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 18 
ayes and 24 noes.
    17. Mr. Davis offered an amendment to increase BA and 
outlays for Function 350 by $55 million to reflect the 
following: An increase of $16 million for capacity building 
grants to colleges eligible to receive funds under the Act of 
August 20, 1890; an increase of $12 million for payments to 
upgrade research, extension and teaching facilities at the 1890 
land-grant colleges, including Tuskegee University; an increase 
of $10 million for payments to the 1890 land-grant colleges, 
including Tuskegee University; an increase of $11 million for 
payments for cooperative extension work by the colleges 
receiving the benefits of the second Morill Act and Tusekegee 
University; and an increase of $6 million for grants and 
contracts pursuant to section 2501 of the Food, Agriculture, 
Conservation, and Trade Act of 1990, to provide Outreach for 
Socially Disadvantaged Farmers.
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                              VOTE NO. 17

    Voice vote: No.
    The amendment was not agreed to by a voice vote.
    18. Mrs. Capps offered an amendment to strike the Medicaid 
reserve fund and the reconciliation instruction to the Energy 
and Commerce Committee included in the legislative text of the 
budget resolution. It also would increase BA and outlays for 
Function 550 by $10 billion in fiscal year 2003 to reflect 
temporary State fiscal relief in the form of an increased 
Federal match under the Medicaid program.
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                              VOTE NO. 18


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........  ..........  ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 18 
ayes and 23 noes.
    19. Mr. Scott offered an amendment to increase BA and 
outlays for Function 500 to reflect BA and outlays for No Child 
Left Behind. The levels are as follows: BA: 2004: $10.011; 
outlays: 2004: $.501; 2005: $6.507; 2006: $2.503; 2007: $.501 
(billions for fiscal year).
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                              VOTE NO. 19


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........  ..........
----------------------------------------------------------------------------------------------------------------

    The amendment not agreed to by a roll call vote of 19 ayes 
and 23 noes.
    20. Mr. Ford offered an amendment expressing the sense of 
the Congress on reducing the number of the uninsured and a 
Federal initiative to support core safety providers.

                              VOTE NO. 20


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment not agreed to by a roll call vote of 18 ayes 
and 24 noes.
    21. Ms. DeLauro offered an amendment to change the 
reconciliation instructions in the chairman's mark to reflect 
the following: The Ways and Means Committee would be directed 
to increase the child tax credit to $1,000 per child starting 
immediately for the period of 1 year, to make that tax credit 
fully refundable, and to reduce the tax cuts assumed in the 
budget resolution to reflect the cost.

                              VOTE NO. 21


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 19 
ayes and 24 noes.
    22. Mr. Edwards offered an amendment to increase BA and 
outlays by $3.63 billion for Function 600 to reflect full 
funding for concurrent receipt. It also decreased BA and 
outlays by $302 million in Function 050 to reflect savings from 
the repeal of special payments to disabled retirees.
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                              VOTE NO. 22


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,         ..........  .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........  ..........  ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........  ..........  ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD           ..........  .........       X
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 17 
ayes, 22 noes, and 1 member voting present.
    23. Mr. Thompson offered an amendment expressing the sense 
of the Congress on Klamath Basin.

                              VOTE NO. 23


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY          ..........  .........       X
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 17 
ayes, 24 noes, and 1 member voting present.
    24. Mr. Cooper offered an amendment to insert the following 
reconciliation instruction in the legislative text of the 
budget resolution: Not later than 15 June 2003, the House 
Committee on Ways and Means shall report to the House a 
reconciliation bill that consists of changes in laws within its 
jurisdiction sufficient to reduce revenues by not more than 
$2.1 billion for fiscal year 2004 and by not more than $26 
billion for the period of fiscal years 2004 through 2013. The 
intent of the reconciliation language is to fully restore the 
State sales tax deduction.

                              VOTE NO. 24


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND            ..........  .........       X
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment not agreed to by a roll call vote of 17 ayes, 
24 noes with 1 Member voting present.
    25. Mr. Emanuel offered an amendment to increase BA and 
outlays for Function 500 to increase funding for Pell Grants. 
BA: 2004: $.200; 2005: $.285; 2006: $.370; 2007: .455; 2008: 
$.540; 2009: $.625; 2010: $.710; 2011: $.795; 2012: $.880; 
2013: $.965; outlays: 2004: $.040; 2005: $.213; 2006: $.300; 
2007: .385; 2008: $.470; 2009: $.555; 2010: $.640; 2011: $.725; 
2012: $.810; 2013: $.895; (billions for fiscal year).
    It also adjusted the aggregate level of revenues by amounts 
equal to the foregoing outlay changes to Function 500, 
reflecting an increase in revenue associated with tax law 
changes that ensure that corporate owned life insurance is only 
used for legitimate business purposes.

                              VOTE NO. 25


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment not agreed to by a roll call vote of 17 ayes 
and 24 noes.
    26. Mr. Davis offered an amendment to increase BA and 
outlays for Function 450 by $50 million in fiscal year 2004 to 
fund empowerment zones; to increase BA and outlays for Function 
450 by $40 million in fiscal year 2004 to fund the Brownfield 
Redevelopment Program; and to increase BA and outlays for 
Function 600 by $40 million in fiscal year 2004 to fund the 
Rural Housing and Economic Development Program.
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                              VOTE NO. 26


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 18 
ayes and 24 noes.
    27. Mr. Ford offered an amendment to increase BA and 
outlays for Function 500 to increase funding for the 
establishment of the Office of Pre-Kindergarten Oriented 
Professional Support within the Department of Education. The 
levels are as follows: BA: 2004: $40; 2005: $40; 2006: $40; 
2007: $40; 2008: $40; 2009: $40; 2010: $40; 2011: $40; 2012: 
$40; 2013: $40; outlays: 2004: $1.0; 2005: $5; 2006: $5; 2007: 
$5; 2008: $5; 2009: $20; 2010: $20; 2011:$40; 2012: $40; 2013: 
$40; (millions for fiscal year).
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                              VOTE NO. 27

    Voice vote: No.
    The amendment was not agreed to by a voice vote.
    28. Mrs. Capps offered an amendment to increase BA and 
outlays for Function 550 to reflect efforts to address the 
nursing shortage. The levels are as follows: BA: 2004: $77.00; 
2005: $129.00; 2006: $129.00; 2007: $129.00; 2008: $129.00; 
2009: $129.00; 2010: $129.00; 2011: $129.00; 2012: $129.00; 
2013: $129.00; outlays: 2004: $36.190; 2005: $89.890; 2006: 
$118.120; 2007: $126.150; 2008: $128.480; 2009: $129.00; 2010: 
$129.00; 2011: $129.00; 2012: $129.00; 2013: $129.00; (millions 
for fiscal year).

                              VOTE NO. 28

    Voice vote: No.
    The amendment not agreed to by a voice vote.
    29. Mr. Cooper offered an amendment expressing the sense of 
the Congress that Head Start should remain in the Department of 
Health and Human Services.

                              VOTE NO. 29


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS           ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........  ..........  ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X      ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER          ..........       X      ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS          ..........       X      ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE     ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment was not agreed to by a roll call vote of 19 
ayes and 23 noes.
    30. Mr. Emanuel offered an amendment to increase BA and 
outlays for Function 500 to reflect increased funding for 
education programs. The levels are as follows: BA: 2004: $1.0; 
2005: $1.045; 2006: $1.090; 2007: $1.135; 2008: $1.180; 2009: 
$1.225; 2010: $1.270; 2011: $1.315; 2012: $1.360; 2013: $1.405; 
outlays: 2004: $.050; 2005: $.702; 2006: $.984; 2007: $1.077; 
2008: $1.122; 2009: $1.167; 2010: $1.212; 2011: $1.257; 2012: 
$1.302; 2013: $1.347; (billions for fiscal year).

                              VOTE NO. 30

    Voice vote: No.
    The amendment was not agreed to by a voice vote.
    31. Mr. Kind offered an amendment to decrease BA and 
outlays for Function 350 to reflect a decreased limit on 
commodity payments. The levels are as follows: BA: 2004: -$60; 
2005: -$90; 2006: -$98; 2007: -$90; 2008: -$75; 2009: -$91; 
2010: -$71; 2011: -$62; 2012: -$55; 2013: -$50; outlays: 2004: 
-$60; 2005: -$90; 2006: -$98; 2007: -$90; 2008: -$75; 2009: 
-$91; 2010: -$71; 2011: -$62; 2012: -$55; 2013: -$50; (millions 
for fiscal year). The amendment reduce the deficit in the 
budget resolution by an amount equal to the foregoing outlay 
changes to Function 350.

                              VOTE NO. 31

    Voice vote: No.
    The amendment was not agreed to by a voice vote.
    32. Ms. Hooley offered an amendment to increase BA and 
outlays in Function 500 to reflect an increase of funding for 
the Dislocated Worker Program. BA: 2004: $211; outlays: 2004: 
$10.55; 2005: $137.15; 2006: $52.75; 2007: $10.55 (millions for 
fiscal years).
    It also provided that the deficit would be reduced by an 
amount equal to the outlay changes in the appropriate function 
for the prior changes, and that the aggregate levels of revenue 
should be increased by amounts equal to twice the foregoing 
outlay changes, reflecting a reduction in the tax relief 
assumed in the budget resolution.

                              VOTE NO. 32

    Voice vote: No.
    The amendment not agreed to by a roll call vote of 17 ayes 
and 24 noes.
    33. Mr. Scott moved that the committee recommend certain 
report language be included in the report on the budget 
resolution. The report language indicated that the committee 
recognizes that the 2001 Quadrennial Defense Review by the Navy 
stressed the need for a 360-400 vessel fleet. It would have 
also acknowledged that the Department of Defense has 
recommended a fleet of between 305 and 310. It further would 
have indicated that the committee recognizes that, according to 
the Navy, 54 percent of the ships and 30 percent of the 
submarines are currently deployed, with a total of 67 percent 
and 51 percent respectively underway. It would have expressed 
that the committee believes it necessary to meet the minimally 
suggested fleet of 305 vessels, and thus for the fiscal year 
2004 budget, Function 050 should move at least $4.442 billion 
from the missile defense fund to ship building for three 
additional vessels.

                              VOTE NO. 33

    Voice vote: No.
    The motion was not agreed to by a voice vote.
    34. Mr. Edwards, Mr. Schrock, Mrs. Capps, Mr. Thornberry, 
Mr. Brown, Mr. Crenshaw and Mr. Scott offered an amendment to 
increase BA and outlays for Function 500 to reflect sufficient 
funding to maintain Impact Aid services at the 2003 level. The 
levels are as follow: BA: 2004: $223; outlays: 2004: $201; 
2005: $9; 2006: $7; 2007: $4; (millions for fiscal year).

                              VOTE NO. 34


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,              X      ..........  ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS                X      ..........  ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT            X      ..........  ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY           X      ..........  ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN                 X      ..........  ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY               X      ..........  ............  Mr. LEWIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS             X      ..........  ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN              X      ..........  ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK              X      ..........  ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN                X      ..........  ............  Mr. SCOTT                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW             X      ..........  ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM               X      ..........  ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER               X      ..........  ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF              X      ..........  ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO        ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER               X      ..........  ............  Mr. EMANUEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER               X      ..........  ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS               X      ..........  ............  Ms. MAJETTE              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT              X      ..........  ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT              X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER             X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART          X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING           X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE          X
----------------------------------------------------------------------------------------------------------------

    The amendment was agreed to by a roll call vote of 42 ayes 
and 1 no.
    35. Mr. Nussle offered an amendment that consisted of two 
revisions to the legislative text. The first replaced 
reconciliation instructions to the Ways and Means Committee and 
the Energy and Commerce Committee with instructions combining 
required savings with funds for Medicare modernization. It 
included a special role to ensure a required role of savings. 
The second revision inserts a contingency procedure that would 
adjust the levels of the budget resolution to accommodate 
increased spending for highways if offset by a reduction in 
direct spending or an increase in other resources.

                              VOTE NO. 35

    Voice vote: Yes.
    The amendment was agreed to by voice vote.
    36. Mr. Shays made a motion that the committee adopt the 
aggregates, function totals, and other appropriate matter, with 
any amendments.

                              VOTE NO. 36

    Voice vote: Yes.
    The motion offered by Mr. Shays was agreed to by voice 
vote.
    Chairman Nussle called up the Concurrent Resolution on the 
Budget for Fiscal year 2004 incorporating the aggregates, 
function totals, and other appropriate matter as previously 
agreed.
    37. Mr. Shays made a motion that the committee report the 
Concurrent Resolution with a favorable recommendation and that 
the Concurrent Resolution do pass.

                              VOTE NO. 37


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,              X      ..........  ............  Mr. SPRATT,         ..........      X      ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SHAYS                X      ..........  ............  Mr. MORAN           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT            X      ..........  ............  Ms. HOOLEY          ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY           X      ..........  ............  Ms. BALDWIN         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN                 X      ..........  ............  Mr. MOORE           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY               X      ..........  ............  Mr. LEWIS           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS             X      ..........  ............  Mr. NEAL            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN              X      ..........  ............  Ms. DeLAURO         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK              X      ..........  ............  Mr. EDWARDS         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. BROWN                X      ..........  ............  Mr. SCOTT           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW             X      ..........  ............  Mr. FORD            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM               X      ..........  ............  Mrs. CAPPS          ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER               X      ..........  ............  Mr. THOMPSON        ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF              X      ..........  ............  Mr. BAIRD           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. TANCREDO             X      ..........  ............  Mr. COOPER          ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. VITTER               X      ..........  ............  Mr. EMANUEL         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER               X      ..........  ............  Mr. DAVIS           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Ms. FRANKS               X      ..........  ............  Ms. MAJETTE         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT              X      ..........  ............  Mr. KIND            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT              X
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER             X
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART          X
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING           X
----------------------------------------------------------------------------------------------------------------
Ms. BROWN-WAITE          X
----------------------------------------------------------------------------------------------------------------

    The motion offered by Mr. Shays was agreed to by a roll 
call vote of 24 ayes and 19 noes.
    Mr. Shays asked for unanimous consent that the chairman be 
authorized to make a motion to go to conference pursuant to 
clause 1 of House Rule XXII, the staff be authorized to make 
any necessary technical and conforming corrections in the 
resolution, and any committee amendments, and calculate any 
remaining elements required in the resolution, prior to filing 
the resolution.
    There was no objection to the unanimous consent requests.


                       Additional Report Language

                              ----------                              


                     Accelerated Modernization Plan

    The Department of Agriculture animal health facilities play 
a critical role in responding effectively to emerging animal 
diseases such as Foot and Mouth and Mad Cow diseases as well as 
threats to human welfare. The committee recommends that these 
facilities receive sufficient funding to meet these growing 
demands. In particular, the committee believes that the 
Accelerated Modernization Plan for USDA's health facilities in 
Ames, Iowa should be adequately funded so that modernization 
plans at Ames may be completed in a timely manner.

                            Inland Waterways

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

                           Water Trust Funds

    Mr. Bonner and Mr. Hulshof expressed concern about the 
issue of Water Trust Funds. The administration budget proposes 
to expand the authorized uses of the Inland Waterways Trust 
Fund and the Harbor Maintenance Trust Fund to finance 25 to 50 
percent of operation and maintenance costs for inland 
waterways, in addition to the currently authorized financing 
for 50 percent of construction and major rehabilitation costs 
of inland waterways improvements. For coastal harbors, the 
Harbor Maintenance Trust Fund would be used for the first time 
to finance the Federal share of project construction costs, in 
addition to the currently authorized financing for the Federal 
share of the costs to operate and maintain the general 
navigation features of these harbors. The committee wants to be 
clear that the budget resolution does not assume enactment of a 
proposal by the administration to change the purposes of two 
trust funds that finance U.S. Army Corps of Engineers work on 
the inland waterway system and on the nation's coastal harbors.

                      Millenium Challenge Accounts

    The Millennium Challenge Account (MCA) is an unprecedented 
foreign assistance program that builds on America's core values 
of freedom, generosity, and dedication to progress and economic 
prosperity. The MCA will provide aid designed to initiate rapid 
economic growth in low-income countries that pursue sound 
policies. Through standards set by the MCA, the United States 
is committing itself to the belief that successful societies 
cannot be created without strong leadership, significant 
investments in health and education, and economies based on 
sound market principles.
    Establishing criteria to measure and reward the progress of 
low-income nations allows the United States to provide a 
powerful and influential incentive to foreign governments to 
embrace and sustain reforms. Special consideration should be 
provided to these low income countries that have demonstrated 
successful post conflict national reconciliation and adherence 
to the rule of law yet have difficulty in creating a physical 
infrastructure to support economic growth due to the 
debilitating effects of regular natural disasters such as 
cyclones and hurricanes. Nations such as Bangladesh; Bolivia; 
Ghana; Georgia; Honduras; Mongolia; Mozambique; Senegal; and 
Sri Lanka, with less than $1,435 per capita incomes, are 
clearly exemplifying the criteria that MCA outlines.

                       Health Facilities Project

    Mr. Tancredo raised the issue of Fitzsimons Army Hospital. 
To be clear on this matter, the committee recognizes the 
importance of new construction projects within the Department 
of Veterans Affairs and the benefits these projects can bring 
to the improved health care of our nation's veterans. The 
Colorado University School of Medicine plans a major relocation 
of all its facilities to the site of the closed Fitzsimons Army 
Hospital. Veterans Affairs is considering whether to recommend 
replacement of the Denver VA Medical Center, a 50 year old 
structure now colocated with the Colorado Medical School as 
part of that relocation. Priority for this project should be 
given consideration within the Department of Veterans Affairs 
Medical Programs funding allocations for construction projects.

                       Mixed Oxide Fuel Facility

    Mr. Barrett raised the issue of Mixed Oxide Facilities. To 
be clear on this matter, the budget resolution assumes full 
funding of the President's $415 million request for the 
construction of the Department of Energy's [DOE] Mixed Oxide 
[MOX] Fuel Facility and Pit Disassembly and Conversion Facility 
[PDCF] for fiscal year 2004. This funding would be used to 
initiate construction of the MOX Fuel Facility and complete the 
design of the PDCF at the Savannah River Site.

                    Lowry Bombing and Gunnery Range

    Mr. Tancredo raised the issue of the Lowry Bombing and 
Gunnery Range. To be clear on this matter, the committee 
recognizes the continuing challenges presented to State and 
local governments by finding of unexploded and hazardous 
munitions on sites previously used for training by the 
Department of Defense. The U.S. Army Corps of Engineers is 
conducting reclamation and mitigation activities at the former 
Lowry Bombing and Gunnery Range in Arapahoe County, Colorado. 
Given the proximity of the site to Cherry Creek High School, 
Aurora Reservoir, and encroaching suburbs, the committee 
believes that full funding to complete this cleanup should be 
given consideration within the Department of Defense Formerly 
Used Defense Sites (FUDS) account.

                          Land Grant Colleges

    During committee consideration of the budget resolution, 
Mr. Davis raised the issue of Land Grant Colleges. To be clear 
on this matter, the committee recognizes the outstanding 
achievements of 1890 Colleges of Agriculture and recommends 
that these institutions be given equal consideration for 
funding that 1862 land grant schools receive during the coming 
fiscal year.

                       Artificial Neural Networks

    Mr. Tancredo raised the issue of the Artificial Neural 
Networks. To be clear on this matter, the committee is aware of 
research into Artificial Neural Networks (ANN) which are 
capable of recognizing complex patterns in data and 
information. The committee believes such networks are excellent 
tools for clinical decision making in prostate cancer, 
testicular cancer, cardiovascular problems, and other medical 
situations. Research to date has been encouraging, but 
expansion of the research efforts to include a more diverse 
population base would aid the ANN is determining optimal 
treatment. Therefore, the committee asks that the ANN receive 
priority in funding consideration for cooperative studies 
research and medical research under the Department of Veterans 
Affairs Medical and Prosthetic Research budget in order to 
continue research in the diagnosis and prognosis of prostate 
cancer

               Center for Disease Control and Prevention

    The Budget Committee believes the Center for Disease 
Control and Prevention's building and facilities master plan 
should be adequately funded so that it may be brought to 
completion.

                  General Fund Diesel Fuel Excise Tax

    Mr. Hulshof raised the issue of the Diesel Fuel Excise Tax. 
To be clear on this matter, the unfair and discriminatory 4.3 
cents per gallon general fund excise tax imposed on rail and 
inland waterway carriers should be repealed. This tax unfairly 
targets railroad and barges for discriminatory tax treatment 
and is inconsistent with sound transportation policy. The 
resolution also opposes the creation or diversion of revenue 
from the tax to new or existing Federal trust funds.

                          Medicare Home Health

    Mr. Ryun raised the issue of the Medicare Home Health Care 
program. To be clear on this matter, the committee recognizes 
the importance of Home Health Care for seniors and disabled 
citizens and notes that the 10 percent rural add-on payment for 
Home Health will be eliminated on 1 April 2003. MedPAC has 
expressed concern that payments under the Home Health PPS may 
not be appropriately distributed for some rural providers.

                        Medicare Payment Equity

    The committee believes that the Medicare+Choice regional 
disparity among reimbursement rates is unfair. Further, there 
is also a need to assess the fairness of urban/rural payment 
disparities in the fee-for-service.

                         Navy's LPD-17 Program

    Mr. Vitter raised the issue of the Navy's LPD-17 Program. 
To be clear on this matter, the budget resolution supports the 
President's position on advanced procurement and construction 
of advance components for one fiscal year 2005 LPD-17 Class 
ship. LPD-17 acquisition program will replace 41 obsolete 
amphibious ships, all of which are beyond their economical 
service life. In addition, when complete, the LPD-17 program 
will reduce amphibious ship manning requirements by 
approximately 9,000 sailors. It is the committee's 
understanding that during the development of the fiscal year 
2004 Defense Budget, the LPD-17 program procurement profile was 
modified to stretch program, which was to be completed by 2008, 
by procuring just one ship a year through fiscal year 2010. The 
new acquisition profile will substantially increase the 
procurement cost of these vital ships. The additional $260 
million will stabilize and optimize production schedules and 
meet the unfunded requirements of both the Chief of Naval 
Operations and the Commandant of the Marine Corps.
    Alternative version: The budget supports the President's 
request of $1.192 billion for the LPD-17 program. In addition, 
the committee is concerned that the current program procurement 
profile will stretch program, which was to be completed by 
2008, by procuring just one ship a year through fiscal year 
2010, thus increasing costs to the taxpayers and the Navy. The 
committee also understands that both the Chief of Naval 
Operations and the Commandant of the Marine Corps have included 
advanced LPD-17 procurement on their unfunded requirements and 
request list.

                              Coast Guard

    Mr. Vitter raised the issue of the Coast Guard. To be clear 
on this matter, the Coast Guard has been protecting America's 
maritime interests with honor and distinction since 1790. From 
our ports and inland waterways, to the Gulf of Mexico and the 
Mississippi River system and beyond, our Nation's maritime 
assets provide critical transportation and trade routes 
essential to growing our economy. A terrorist attack on any of 
our maritime systems would be devastating to our economy. As 
one of the core agencies of the new Department of Homeland 
Security, the Coast Guard will continue its mission to protect 
our maritime interests with distinction and honor, and the 
committee believes it is vital to the Homeland Security 
Department's mission that the Coast Guard receives ample 
funding.

                        Maritime Administration

    Mr. Scott raised the issue of the Maritime Administration's 
designation of certain vessels. Currently, the Maritime 
Administration's [MARAD] has 130 vessels designated for 
disposal as part of its Ship Disposal Program. At least 40 of 
these vessels are in particularly bad condition. They are 
anchored in the James River in Virginia, Suisin Bay in 
California, and the Neches River in Texas. The vessels contain 
hazardous substances that pose a risk to the environment unless 
these vessels are either scrapped, repaired, or used for 
another purpose--including the fish reef program, by another 
Federal or State agency, or as donations to museums--in the 
near future. The committee has held hearings on the matter, and 
recognizes the imporance of addressing this issue.

        Department of Energy's Defense Environmental Management

    Mr. Hastings raised the issue of the Defense Environmental 
Management. To be clear on this matter, the budget resolution 
assumes full funding of the President's $7.2 billion request 
for the Department of Energy's [DOE] Environmental Management 
Program for Fiscal Year 2004. The funding level provided in the 
resolution will allow for accelerating the completion of 
cleanup by decades and save billions of dollars in spending.

                          Child Nutrition Act

    Mr. Putnam raised the issue of the Child Nutrition Act. To 
be clear on this matter, the budget resolution should ensure 
that Federal nutrition programs, including reauthorization of 
the Child Nutrition Act by Congress this year, provides funding 
resources to encourage the greater availability of fruit, 
vegetables and 100 percent juice products in Federal nutrition 
programs.

                      Food and Drug Administration

    During committee consideration of the budget resolution, 
Mr. Kind as well as Mr. Gutknecht raised the issue of the 
enforcement of laws administered by the Food and Drug 
Administration. The committee urges the Food and Drug 
Administration to ensure all applicable domestic food 
production laws are abided by and enforced.

                                  VISN

    Ms. Brown-Waite raised the issue of cancelled appointments 
for VA medical care. To be clear on this matter, the committee 
recommends that the Veterans' Administration make a quarterly 
report to each Member of Congress on appointment cancellations 
within their respective Veterans Integrated Service Network 
[VISN]. The report should include the number of VA initiated 
cancellations for doctors' appointments and reasons for these 
cancellations.

                    Individual Development Accounts

    Mrs. Capps raised the issue of Individual Development 
Accounts. To be clear on this matter, the committee believes 
that asset accumulation is an important component of helping 
low-income families and individuals enter the financial 
mainstream and improve their financial security in both the 
short and long-terms. The committee is further aware that 
Individual Development Accounts (IDAs) are an innovative 
program that has proven successful in permitting low-income, 
working families and individuals build the necessary financial 
resources to buy their first house, expand postsecondary 
education and job training opportunities, or start a small 
business. In short, IDAs are matched savings accounts that 
provide valuable assistance for struggling families and 
individuals to achieve their piece of the American Dream.
    The future success of IDAs is greatly dependent on the 
availability of needed matching funds to supplement the hard 
earned savings of working families and individuals who are 
committed to building a better life. Bipartisan legislation has 
been introduced in past Congresses and, once again, President 
Bush's fiscal year 2004 budget request has echoed those 
legislative proposals, calling for the creation of a tax credit 
for financial institutions to provide the matching dollars 
required by IDAs.
    The committee believes the Federal Tax Code should support 
a significant expansion of IDAs so that 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.

                      Veterans' Outpatient Clinics

    Ms. Brown-Waite raised the issue of Veterans' Outpatient 
Clinics. To be clear on this matter, the committee recommends 
that one or more Veterans' Outpatient Clinics, providing 
general and specialist care to veterans, be placed in VISN 8. 
These clinics must provide, but are not limited to, 
audiologists, cardiologists, and dermatologists.The committee 
further recommends that preference for the site of this project 
be given to areas with donated land and building space.

                               Impact Aid

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

                            Salmon Recovery

    Pacific Salmon are historically, culturally, and 
economically important to the people of the Northwest. The 
United States Government has negotiated treaties with the 
Columbia River Indian tribes. The National Marine Fisheries 
Service in December 2000 issued a biological opinion on the 
Federal Columbia River Power System calling for greater efforts 
by the Federal Government, to satisfy the ESA standards of 
section 7(a)(2) of the Endangered Species Act; and the citizens 
of the Pacific Northwest are committed to salmon recovery and 
their hard work in communities throughout the region to advance 
local solutions deserves Federal assistance. This resolution 
assumes that the Pacific Northwest salmon recovery program, 
administered by Federal agencies on the Federal Columbia River 
Power System and Pacific coast, should be made a high-priority 
item for funding.

                           Federal Pay Parity

    Members of the uniformed services and civilian employees of 
the United States make significant contributions to the general 
welfare of the Nation. 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 32 percent gap between compensation levels of Federal 
civilian employees and compensation levels of private sector 
workers, and an estimated 10 percent gap between compensation 
levels of members of the uniformed services and compensation 
levels of private sector workers. In almost every year during 
the past two decades, there have been equal adjustments in the 
compensation of members of the uniformed services and the 
compensation of civilian employees of the United States. The 
committee believes 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.

             Accounts Identified for Advance Appropriations

                        INTERIOR APPROPRIATIONS

    Elk Hills (89 5428 02 271)

       LABOR, HEALTH AND HUMAN SERVICES, EDUCATION APPROPRIATIONS

    Corporation for Public Broadcasting (20 0151 01 503)
    Employment and Training administration (16 0174 01 504)
    Education for the Disadvantaged (91 0900 01 501)
    School Improvement (91 1000 01 501)
    Children and Family Services [Head Start] (75 1536 01 506)
    Special Education (91 0300 01 501)
    Vocational and Adult Education (91 0400 01 501)

                      TRANSPORTATION APPROPRATIONS

    Transportation (highways; transit; Farley Building)

              TREASURY, GENERAL GOVERNMENT APPROPRIATIONS

    Payment to Postal Service (18 1001 01 372)

         VETERANS, HOUSING AND URBAN DEVELOPMENT APPROPRIATIONS

    Section 8 Renewals (86 0319 01 604)


                Other Matters to Be Discussed Under the
                           Rules of the House

                              ----------                              


     Committee on the Budget Oversight Findings and Recommendations

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

   New Budget Authority, Entitlement Authority, and Tax Expenditures

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

                General Performance Goals and Objectives

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

                       Views of Committee Members

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

                           BUSH BUDGET SPENDS $5 TRILLION FROM SOCIAL SECURITY LOCKBOX
----------------------------------------------------------------------------------------------------------------
  2002     2003     2004     2005     2006     2007     2008     2009     2010    2011    2012    2013    Total
----------------------------------------------------------------------------------------------------------------
  -317     -452     -512     -464     -429     -404     -416     -421     -427    -458    -424    -434    -5158
----------------------------------------------------------------------------------------------------------------
Prepared by the Democratic Staff of the House Budget Committee.


           APRIL 2001 BASELINE TO FEBRUARY 2003 CURRENT POLICY
                        [In billions of dollars]
------------------------------------------------------------------------
                                 2002       2003       2004     2002-11
------------------------------------------------------------------------
April 2001 Baseline Surplus.        283        334        387      5,637
    Economic adjustments....       -284       -352       -292     -3,174
                             -------------------------------------------
      Adjusted Surplus......  .........  .........  .........      2,463
                             ===========================================
Enacted Policy (with debt
 service):
    Tax Cuts................        -41        -94       -120     -1,491
    Stimulus................        -59        -41        -31        -79
    Other Enacted                   -57       -110       -104     -1,022
     Legislation............
                             -------------------------------------------
      Subtotal: Enacted       .........  .........  .........      2,592
       Policies.............
                             -------------------------------------------
Current Baseline............       -158       -264       -158       -129
FY '04 Budget Proposals.....  .........        -40       -149     -1,993
                             -------------------------------------------
Budget Deficits.............       -158       -304       -307     -2,122
------------------------------------------------------------------------
Prepared by the Democratic Staff of the House Budget Committee.
Source: CBO Baseline, OMB Policies.




   MINORITY VIEWS OF REPRESENTATIVES JOHN M. SPRATT, JR., JIM MORAN, 
  DARLENE HOOLEY, TAMMY BALDWIN, DENNIS MOORE, JOHN LEWIS, RICHARD E. 
NEAL, ROSA L. DeLAURO, CHET EDWARDS, ROBERT C. ``BOBBY'' SCOTT, HAROLD 
E. FORD, JR., LOIS CAPPS, MIKE THOMPSON, BRIAN BAIRD, JIM COOPER, RAHM 
         EMANUEL, ARTUR DAVIS, DENISE L. MAJETTE, AND RON KIND

    [Chart 1] We begin this process in a fiscal hole, with 
deficits as far as the forecasts go, and a President's budget 
that offers no solutions; it only compounds our problems. Just 
consider the first table in CBO's analysis of the President's 
budget, released Friday March 7, 2003. [Chart 2] Add the top-
line from 2002 across to the year 2013, and you will see, 
written on one line, the fiscal legacy of this Administration. 
Under its policies, the on-budget deficit from 2002 through 
2013 adds up to $5.158 trillion.
    With deficits like these, we can understand why Republicans 
rejected the President's budget and wrote their own, but it is 
difficult to take this budget--with its enormous unspecified 
spending cuts--at face value. We think the Republican budget 
leads us down the same path, deeper and deeper into deficit and 
debt.
    How did we get from a budget that was $236 billion in 
surplus in the year 2000 to a budget that is in deficit by $287 
billion in 2003?
    When the first President Bush left office, he left behind 
the largest deficit in the nation's history. President Clinton 
sent Congress a budget to cut that deficit by more than half 
over five years. It passed by one vote amid taunts that it 
would ``cut the economy off at the knees'' and ``mushroom the 
deficit.'' The deficit did not ``mushroom;'' it shrank. The 
bottom-line of the budget got better every year. By 1998 it was 
balanced for the first time in thirty years. By 2000, the 
budget was in surplus by $236 billion.
    And so the second President Bush took office with an 
advantage few presidents have enjoyed: a budget in surplus, 
projected at $5.6 trillion over 10 years, according to OMB. We 
warned that this projected surplus was based on a blue-sky 
forecast, and implored the Republicans not to be reckless with 
the first round of tax cuts.
    Republicans enacted their tax cuts anyway, and they took a 
$1.7 trillion bite out of the surplus. By July of 2001, despite 
the claimed benefit from enactment of the Republican tax cuts, 
the economy had taken another bite out of the surplus, so much 
so that when CBO sent us its Mid-Session Review in July 2001, 
the surplus, not including Social Security, was down to $575 
billion, and not including Medicare, it was down to about $300 
billion. The Administration blames today's deficits on the 
tragedy of September 11, but most of the on-budget surplus was 
already gone by the time the terrorists struck.
    So, this is where we find ourselves as we consider the 
budget for Fiscal Year 2004. [Chart 3] OMB acknowledges that it 
overstated the surplus by at least $3.2 trillion. Its latest 
forecast, adjusted for the economy, is $2.463 trillion, but 
here's the rub: Congress has enacted policies committing all of 
that and more. In fact, there is no surplus; in place of the 
$5.6 trillion surplus, there is a deficit of $129 billion.
    We could excuse the first tax cut as a failure to use due 
care. Republicans took a bet on a blue-sky forecast. But now, 
they are on notice. Every dollar of tax reduction that 
Republicans enact now will go straight to the bottom line and 
add to the deficit; and that's exactly what happens with the 
President's budget. But deficits don't deter this 
Administration. The President goes right on and proposes $1.993 
billion of new policy actions, $1.6 trillion in new tax cuts, 
and racks up $2.1 trillion in deficits between now and 2011. 
This is no longer a failure to use due care. This is willful, 
wanton, and intentional. This, in our opinion, is reckless.
    Apparently, House Republicans agree, to an extent, because 
what they do in their budget resolution is repudiate the 
President's budget. They look down that road he would take us, 
toward $5 trillion in additional deficits, and they opt for 
another route.
    But the President has proposed $1.6 trillion in new tax 
cuts, and Republicans don't reject them; they cling tenaciously 
to these new tax cuts. They subordinate everything in the 
budget to these additional tax cuts.
    --They subordinate veterans; cutting their benefits by 
$15.062 billion over the next ten years.
    --They subordinate students; cutting guaranteed loans by as 
much as $9.701 billion over the next ten years.
    --They subordinate the elderly; cutting Medicare by as much 
as $261.771 billion over the next ten years.
    --They subordinate the poor; cutting Medicaid by as much as 
$110.564 billion over the next ten years.
    --They subordinate environment; taking $2.475 billion from 
the Resources Committee.
    They also cut discretionary spending. To make a little room 
for his tax cuts, the President has already cut non-defense, 
non homeland security discretionary budget authority by $143 
billion below current services over 10 years. House Republicans 
cut it by another $126 billion. So much for education, and for 
Leave No Child Behind. It is funded in the President's budget 
at $9 billion less than what was authorized for 2004. Since 
House Republicans double the cuts in discretionary spending, 
presumably it will be funded even lower.
    Furthermore, the Republican budget does nothing to provide 
help for the fiscal crisis facing the states, and in fact makes 
it worse. Because of the linkages between the federal and state 
tax codes, the dividend tax proposal at the heart of the 
Republican ``economic growth'' plan would make worse the 
serious budget shortfalls that states are already facing. 
Across the country, states are facing the worst fiscal crisis 
in 50 years, which is forcing them to raise taxes and impose 
drastic spending cuts.
    We don't agree with their budget policies, but we might 
grant that their spending cuts are politically bold--if we 
believed they would ever happen. But we don't think this budget 
is on the level.
    Here is one telltale indication that it's not real. This 
budget calls for the tax cuts to be reported by April 11. It 
does not call for the reconciliation bills, with $470 billion 
in spending reduction, to be reported until July 18, 2003, long 
after votes on the tax bill have come and gone.
    Here's another suspicious indicator. If Republicans are 
serious about saving $470 billion, they might provide us with 
examples of how you would do it. All we get is ``waste, fraud, 
and abuse.'' When the ``Contract with America'' called for 
Medicare cuts of $280 billion, Democrats asked how in the world 
that could be done without emasculating Medicare, and that's 
what Republicans told us, ``waste, fraud, and abuse.'' Here 
they go again.
    There is another reason this budget is not real. The 
largest category in this budget is defense; and the spending 
level for defense, as high as it is at $400 billion, is a plug 
number. Once this resolution has passed, and the tax cuts have 
passed, the Pentagon will send Congress an enormous 
supplemental that will go straight to the deficit, because this 
budget makes no provision for how to pay for the war.
    We can understand why Republicans did not want to go with 
the President's budget, down a road that leads to more than $5 
trillion in additional debt, but this budget leads in the same 
direction, because the massive spending cuts that Republicans 
propose will never be made. But the tax cuts may be, and after 
they are passed, and the defense supplemental has passed, the 
cost of war on the one hand and tax cuts on the other will 
drive the bottom line out of sight.
    We know that Republicans think their 2001 tax cuts helped 
the struggling economy. But in the end, the only one of those 
tax cuts that worked was the rebate proposal, which Republicans 
co-opted from Democrats. The only thing that the U.S. economy 
has to show for the Republican 2001 tax cut is more debt. 
Instead of paying off the public debt by 2008, the debt will 
increase by $1.5 trillion by 2008.
    The failure of the $1.7 trillion 2001 Republican tax cut 
unquestionably should give us pause before we add even more 
debt to the burden of the U.S. economy, just five years before 
the baby-boom generation begins to retire on Social Security, 
and just eight years before it begins to collect Medicare 
benefits.
    The bad news isn't over. The Administration's, and even 
CBO's, receipts projections still have plenty of room to fall 
before they get back to the levels of the middle 1990s. We 
could lose hundreds of billions of dollars from our revenue 
collections, even before the effects of the new tax cuts in the 
Republican resolution. After those tax cuts, we could well have 
another deficit and debt explosion like the one we had in the 
1980s.
    The Republican resolution is a risk that we cannot afford. 
The signs are so obvious and so clear. We went through these 
policies in the 1980s, and the result was an explosion of 
deficits and debt. The hemorrhaging was stopped only by the 
Democratic reversal of policy in the 1990s. Now, immediately 
after Republicans gained control of the White House along with 
the Congress and turned policy around again, the debt has begun 
to mount once more. And rather than being chastened, and trying 
to correct their error, Republicans want to push their debt 
policy still further. How can the Congress fail to see what is 
happening?

                                   John M. Spratt, Jr.
                                   Jim Moran.
                                   Darlene Hooley.
                                   Tammy Baldwin.
                                   Dennis Moore.
                                   John Lewis.
                                   Richard E. Neal.
                                   Rosa L. DeLauro.
                                   Chet Edwards.
                                   Bobby Scott.
                                   Harold E. Ford, Jr.
                                   Lois Capps.
                                   Mike Thompson.
                                   Brian Baird.
                                   Jim Cooper.
                                   Rahm Emanuel.
                                   Artur Davis.
                                   Denise L. Majette.
                                   Ron Kind.

      ADDITIONAL VIEWS OF REPRESENTATIVE ROBERT C. ``BOBBY'' SCOTT

    While I concur with the Minority's Views, there are a few 
points that need additional emphasis.
    While September 11 has changed our fiscal reality, we also 
have to be honest about the fiscal state of emergency we find 
ourselves in. By July 2001, two months before the attacks, the 
unified surplus had already plummeted by $2.5 trillion. We were 
well on our way to a deficit before the attacks.
    Before this Administration and its policies, we were also 
on our way to paying off the national debt by 2011. We are now 
on our way to paying a skyrocketing ``debt tax.'' The debt we 
are experiencing is not theoretical; the interest, the ``debt 
tax,'' we have paid and will pay is quite real. In fact, the 
interest we are paying soon will be eclipsing the non-defense 
discretionary spending. From the Majority's own budget 
document, by 2013, we will be paying $477 billion in interest 
on the debt while only spending $468 billion on the entire non-
defense discretionary budget. That $477 billion in interest 
does not even begin to reduce the debt: it just is just 
interest on the debt.
    Indeed, if we are going to reduce the debt, we will need 
much more than balanced budgets each year. We will need to 
return to surpluses. Unfortunately, this budget never projects 
an on-budget surplus during any year in the future.
    In addition to the present deficit projections, the sad 
fact is that the effect of the tax cuts are going to be worse 
than they currently appear; because they are phased in, the tax 
cuts' true cost is hidden in the first years. We will not see 
how expensive they are until, their full effect is felt in the 
second 10 years. Furthermore, that cost will also kick in at 
the same time our fiscal reality is dramatically changed by the 
baby boomers' retirement.
    This fiscal irresponsibility is compounded by the pattern 
of spending cuts contained in the budget; cuts such as 
reduction to school lunches, heating assistance to low-income 
families, health care for veterans, Medicare, and education, 
just to name a few.
    If we are going to deal with the financial crisis we are 
finding ourselves in, we need to start making tough choices. We 
cannot have all that we want right now, including tax cuts. Tax 
cuts for the few and eroding safety nets for the many are not 
the answer.

                                                       Bobby Scott.

                                
