[House Report 109-402]
[From the U.S. Government Publishing Office]




109th Congress                                                  Report

 2d Session             HOUSE OF REPRESENTATIVES             109-402 
______________________________________________________________________
 
                         CONCURRENT RESOLUTION
                            ON THE BUDGET--
                            FISCAL YEAR 2007

                               __________

                              R E P O R T

                                 of the

                        COMMITTEE ON THE BUDGET

                        HOUSE OF REPRESENTATIVES

                              to accompany

                            H. Con. Res. 376

ESTABLISHING THE CONGRESSIONAL BUDGET FOR THE UNITED STATES GOVERNMENT 
FOR FISCAL YEAR 2007 AND SETTING FORTH APPROPRIATE BUDGETARY LEVELS FOR 
                     FISCAL YEARS 2008 THROUGH 2011

                             together with

                             MINORITY VIEWS






 March 31, 2006.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                  ______


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                        COMMITTEE ON THE BUDGET

                       JIM NUSSLE, Iowa, Chairman
JIM RYUN, Kansas                     JOHN M. SPRATT, Jr., South 
ANDER CRENSHAW, Florida                  Carolina,
ADAM H. PUTNAM, Florida                Ranking Minority Member
ROGER F. WICKER, Mississippi         DENNIS MOORE, Kansas
KENNY C. HULSHOF, Missouri           RICHARD E. NEAL, Massachusetts
JO BONNER, Alabama                   ROSA L. DeLAURO, Connecticut
SCOTT GARRETT, New Jersey            CHET EDWARDS, Texas
J. GRESHAM BARRETT, South Carolina   HAROLD E. FORD, Jr., Tennessee
THADDEUS G. McCOTTER, Michigan       LOIS CAPPS, California
MARIO DIAZ-BALART, Florida           BRIAN BAIRD, Washington
JEB HENSARLING, Texas                JIM COOPER, Tennessee
DANIEL E. LUNGREN, California        ARTUR DAVIS, Alabama
PETE SESSIONS, Texas                 WILLIAM J. JEFFERSON, Louisiana
PAUL RYAN, Wisconsin                 THOMAS H. ALLEN, Maine
MICHAEL K. SIMPSON, Idaho            ED CASE, Hawaii
JEB BRADLEY, New Hampshire           CYNTHIA McKINNEY, Georgia
PATRICK T. McHENRY, North Carolina   HENRY CUELLAR, Texas
CONNIE MACK, Florida                 ALLYSON Y. SCHWARTZ, Pennsylvania
K. MICHAEL CONAWAY, Texas            RON KIND, Wisconsin
CHRIS CHOCOLA, Indiana
JOHN CAMPBELL, California

                           Professional Staff

                     James T. Bates, 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.............................    10
    Economic Projections: Administration, CBO, and Private 
      Forecasters (Table 1)......................................    14
    Economic Assumptions of the Budget Resolution (Table 2)......    15
Revenue..........................................................    17
Function-by-Function Presentation:
    050 National Defense.........................................    21
    150 International Affairs....................................    23
    250 General Science, Space and Technology....................    25
    270 Energy...................................................    26
    300 Natural Resources and Environment........................    27
    350 Agriculture..............................................    29
    370 Commerce and Housing Credit..............................    30
    400 Transportation...........................................    32
    450 Community and Regional Development.......................    34
    500 Education, Training, Employment and Social Services......    36
    550 Health...................................................    38
    570 Medicare.................................................    40
    600 Income Security..........................................    41
    650 Social Security..........................................    43
    700 Veterans Benefits and Services...........................    45
    750 Administration of Justice................................    46
    800 General Government.......................................    47
    900 Net Interest.............................................    49
    920 Allowances...............................................    50
    950 Undistributed Offsetting Receipts........................    51
Summary Tables: Revenue and Spending.............................    51
    Comparison of Total Revenues for President's Request and 
      Committee Recommendation (Table 3).........................    53
    Comparison of On-Budget Revenues for President's Request and 
      Committee Recommendation (Table 4).........................    54
    Tax Expenditure Estimates by Budget Function, Fiscal Years 
      2006-2010 (Table 5)........................................    55
    Fiscal Year 2007 Budget Resolution Total Spending and 
      Revenues (Table 6).........................................    62
    Fiscal Year 2007 Budget Resolution Discretionary Spending 
      (Table 7)..................................................    64
    Fiscal Year 2007 Budget Resolution Mandatory Spending (Table 
      8).........................................................    66
    Fiscal Year 2007 Budget Resolution Minus the President's 
      Request (Table 9)..........................................    68
    Fiscal Year 2007 Budget Resolution Compared to 2006: Total 
      Spending and Revenues (Table 10)...........................    70
    Fiscal Year 2007 Budget Resolution Compared to 2006: Total 
      Spending and Revenues (Percentage Change) (Table 11).......    72
Reconciliation...................................................    75
    Reconciliation Instructions to House Authorizing Committees 
      (Table 12).................................................    77
Section-by-Section Summary of the Budget Resolution..............    79
The Congressional Budget Process.................................    87
    Appropriations Committee.....................................    87
    Authorizing Committees.......................................    88
    Adjustments..................................................    88
    Enforcement..................................................    89
    Allocation of Spending Authority to House Appropriations 
      Committee (Table 13).......................................    90
    Allocations of Spending Authority to House Committees Other 
      Than Appropriations (Table 14).............................    91
Enforcing the Budget Resolution..................................    95
Votes of the Committee...........................................    97
Public Debt......................................................   121
Additional Report Language.......................................   123
Other Matters To Be Discussed Under the Rules of the House.......   129
    Committee on the Budget Oversight Findings and 
      Recommendations............................................   129
    New Budget Authority, Entitlement Authority, and Tax 
      Expenditures...............................................   129
    General Performance Goals and Objectives.....................   129
    Additional, Supplemental, Dissenting and Minority Views......   129
Appendix--The Concurrent Resolution on the Budget................   135

                            List of Acronyms

Office of Management and Budget..................................   OMB
Congressional Budget Office......................................   CBO
Gross Domestic Product...........................................   GDP
Budget Authority.................................................    BA

                              T A B L E S

                                                                   Page
Table 1: Economic Projections: Administration, CBO, and Private 
  Forecasters....................................................    14
Table 2: Economic Assumptions of the Budget Resolution...........    15
Table 3: Comparison of Total Revenues for President's Request and 
  Committee Recommendation.......................................    53
Table 4: Comparison of On-Budget Revenues for President's Request 
  and Committee Recommendation...................................    54
Table 5: Tax Expenditure Estimates by Budget Function, Fiscal 
  Years 2006-2010................................................    55
Table 6: Fiscal Year 2007 Budget Resolution Total Spending and 
  Revenues.......................................................    62
Table 7: Fiscal Year 2007 Budget Resolution Discretionary 
  Spending.......................................................    64
Table 8: Fiscal Year 2007 Budget Resolution Mandatory Spending...    66
Table 9: Fiscal Year 2007 Budget Resolution Minus the President's 
  Request........................................................    68
Table 10: Fiscal Year 2007 Budget Resolution Compared to 2006: 
  Total Spending and Revenues....................................    70
Table 11: Fiscal Year 2007 Budget Resolution Compared to 2006: 
  Total Spending and Revenues (Percentage Change)................    72
Table 12: Reconciliation Instructions to House Authorizing 
  Committees.....................................................    75
Table 13: Allocation of Spending Authority to House 
  Appropriations Committee.......................................    90
Table 14: Allocations of Spending Authority to House Committees 
  Other Than Appropriations......................................    91









                                                                       
109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-402

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

                 CONCURRENT RESOLUTION ON THE BUDGET--
                            FISCAL YEAR 2007

                                _______
                                

 March 31, 2006.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                             MINORITY VIEWS

                    [To accompany H. Con. Res. 376]













                   Strength, Spending Control, Reform

               The Budget Resolution for Fiscal Year 2007

                              ----------                              


                              Introduction

    The first 5 years of the 21st century have indeed altered 
the Nation's perspectives in significant ways--some by choice, 
some not.
    The searing events of 9-11 continue to affect Americans' 
lives, from the stepped-up security measures visible 
everywhere, to the unspoken awareness that someone, somewhere, 
might be plotting another terrorist attack. Vigilance is a 
constant companion. There are also the challenges of U.S. 
military operations in Afghanistan and Iraq--an important and 
necessary part of the response to 9-11.
    During the same period, the Nation has overcome an economic 
downturn; created a new cabinet department for homeland 
security; reformed education and expanded Medicare; enacted 
critical transportation and energy legislation; and tackled the 
worst natural disaster in the Nation's history.
    This year, U.S. demographics have reached a turning point 
as well. The first of the baby boomers are turning 60 this 
year. Thus, the long-awaited retirement of this large 
generation--about 78 million of them--no longer lies somewhere 
in the hazy future; it is right and hand--and so are the 
massive burdens it will place on the government's entitlement 
programs.
    To put it simply: the principal concerns of this country 
have changed in the past 5 years--and the changes are real, and 
permanent.
    The fiscal plan reported by the Committee on the Budget 
acknowledges these changes, and answers them by focusing on 
three budgetary and governing priorities: strength, spending 
control, and reform.

                          Recent Developments

    The events of 9-11 shocked an economy already weakened by a 
slowdown that started a year earlier. It also convinced 
Congress that answering terrorism took precedence over spending 
disciplines. This shift in priorities had bipartisan support: 
Congress would commit whatever was necessary to defeat 
terrorism.
    These conditions drove up government spending and led to 
growing budget deficits; and the pressure of other priority 
reforms (education, Medicare, and so on) added to the burden.
    But in time, Congress returned to budget discipline, with 
an emphasis on three premises: keeping the economy growing and 
creating jobs; controlling spending; and reducing the deficit. 
This approach has seen a degree of success.
    First, the economy has achieved a healthy pace of growth 
that is sustainable for the long term.

- After adjusting for inflation, the economy has grown at a 
    robust average of better than 3 percent per year since 
    2003.

- Nearly 5 million new jobs have been created since August 
    2003.

- February's unemployment rate was 4.8 percent--lower than the 
    average rates of the 1970s, 1980s, and 1990s.

    As always, the real credit for this growth goes to the 
American people--those who work and save and invest to make the 
economy grow. But Congress supported their efforts--by lowering 
tax burdens. This had the direct effect of increasing 
Americans' disposal income, trusting their ability to make the 
right decisions about how to use those resources--investing 
them in their families, or homes, or communities, or 
businesses.
    Furthermore, due to this growth, tax revenue flowing into 
Washington has risen. Last year alone, revenue to the Federal 
Government increased by nearly 15 percent from initial 
estimates, even with the acceleration of the tax relief. At the 
same time, Congress reduced the growth rate of nonsecurity 
discretionary spending--to a near freeze last year. This 
followed the previous year's 1.3-percent growth, and was a 
marked improvement from the previous 5-year average growth of 
about 6.3 percent. The combination of higher revenue and 
restrained spending shrank the fiscal year 2005 deficit by 
about $200 billion, when compared with initial estimates.
    When Hurricane Katrina struck, Congress promptly committed 
$62.3 billion in discretionary emergency supplemental funding 
to help the storm's victims. (Additional funds were provided 
subsequently, and more are expected.) But Congress also 
recognized--in keeping with its long-term plan to control 
spending--the need to offset at least some of this additional 
spending. Therefore Congress increased the amount of 
entitlement savings already proposed in the budget for fiscal 
year 2006, and applied an additional 1-percent reduction in the 
year's final appropriations bill. The latter applied across the 
board--except for the Department of Veterans Affairs and 
emergency spending--and saved an additional $8.5 billion in 
budget authority.
    Still, as Katrina demonstrated, controlling the budget is 
not a one-stroke fix. It requires a long-term, step-by-step 
commitment--one that takes resolve, particularly when 
extraordinary circumstances make it difficult.

                      The Fiscal Year 2007 Budget

    This budget responds to the Nation's complex challenges 
with a set of priorities that are simple, straightforward, and 
proved by experience. In addition, these priorities work 
together and reinforce one another.

- Strength. This means maintaining the Nation's ability to 
    protect itself from aggressors. This is the first 
    obligation of any national government. But the underlying 
    strength of America is its people--their creativity, their 
    resilience, their energy, their productivity. All these 
    translate into a prosperous economy--one that can reward 
    work and ingenuity, and at the same time offer a 
    compassionate safety net for those who need it. Supporting 
    this prosperity is another critical element of this 
    priority.

- Spending Control. Every dollar the government spends--whether 
    financed by taxes or borrowing--is a dollar no longer 
    available to promote the economy's growth. To some extent 
    that is necessary, and over more than two centuries 
    Americans have chosen--through their elected 
    representatives--to commit substantial resources to 
    government activities. But surely these commitments should 
    be no greater than necessary; should cost no more than what 
    is truly needed; and should never displace those things the 
    economy can do better and more efficiently. Reasonable 
    spending control is common sense--and also is another means 
    of promoting growth and strength.

- Reform. Reform is really the link that joins strength and 
    spending control. The typical habit in Washington is to 
    assume that if a program is important, it should get more 
    money--and the thinking stops there. The real truth is, if 
    a program is worthwhile, it should be monitored and 
    nurtured regularly. Congress should constantly strive to 
    make its programs more effective and more efficient. That 
    is reform.

    Spending control drives this process of reform, and 
reform--when done diligently--strengthens the programs that are 
most important. In this way, all three of these priorities work 
together.
    Here in summary is how these priorities translate into the 
parameters of the budget resolution:

                    Budget Summary--Fiscal Year 2007
              (budget authority unless otherwise indicated)
------------------------------------------------------------------------

------------------------------------------------------------------------
Total Spending............................  $2.732 trillion
Total Discretionary Spending..............  $929.534 billion
    National Defense......................  $510.170 billiona
                                            (an increase of 6.4 percent
                                             from 2006 excluding
                                             emergency spending) plus
                                             $50 billion for
                                             supplemental combat funding
    Other Discretionary...................  $419.634 billiona
                                            (a net increase of 0.7
                                             percent from 2006,
                                             excluding emergency
                                             spending)
Mandatory Spending (excluding net           $1,555.440 billion
 interest).                                 (an increase of 3.7 percent
                                             from 2006 excluding
                                             emergency spending)
                                            (assumes various mandatory
                                             spending reforms with a
                                             total budget impact of -
                                             $6.753 billion in outlays
                                             over 5 years)
Revenue...................................  $2.422 trillion
                                            (assumes total tax relief of
                                             $228 billion over 5 years,
                                             consisting of extensions of
                                             2001, 2003, and other
                                             expiring tax relief, as
                                             well as new House-passed
                                             tax initiatives such as
                                             pension reform)
------------------------------------------------------------------------
a These are advisory levels. The Committee on Appropriations will
  determine the final distribution of discretionary spending.

                                Strength


                              The Economy

    Both private and government forecasters estimate that the 
economy has reached a condition of sustainable, long-term 
growth, with continuing job creation and relatively low 
inflation and interest rates. These estimates, however, assume 
no tax increases--and so does this budget.
    Because of arcane congressional bookkeeping procedures, 
when Congress extends a tax provision that is scheduled to 
expire, it is counted as a new tax cut, and a reduction in 
revenue--even though the provision simply retains existing law. 
This counterintuitive mechanism affects the majority of revenue 
assumptions in the budget resolution.

- First, the resolution assumes extension of the 2001 and 2003 
    tax relief provisions that which would otherwise expire 
    during the budget window. This choice will be reflected as 
    a sizeable reduction in revenue--even though, again, it is 
    simply a matter of continuing tax provisions now in effect.

- The resolution assumes extension of other expiring of tax 
    provisions, including relief from the alternative minimum 
    tax [AMT].

    All these provisions are further discussed in the revenue 
section of this report.

                           National Security

    Protecting the Nation from potential aggressors is a pre-
eminent responsibility of any national government. This budget 
meets that challenge. The resolution accommodates the 
President's request for a 7-percent increase for the Department 
of Defense (not including war funding). It also includes a 
contingency fund of $50 billion toward supplemental war 
funding. In addition, the budget allows for the President's 
3.8-percent increase for homeland security funding.
    But even as the budget provides for these ample resources, 
the administration must understand that the Pentagon is not 
immune from the benefits of reform and oversight. Indeed, no 
where are these more important than in safeguarding the 
Nation's security. Congress should strive to assure that every 
dollar spent on defense and homeland security truly contribute 
to making Americans safer.

                          Controlling Spending


                         Discretionary Spending

    The resolution provides a total of $873 billion in fiscal 
year 2007 for annually appropriated spending categories, 
excluding emergency spending proposals. These funds will be 
subdivided by the Appropriations Committee among the various 
programs under its jurisdiction.
    As noted, this level accommodates the President's requested 
increases for defense and homeland security. Assuming this, 
other discretionary spending activities would be held flat, as 
recommended by the President. Within the overall level, some 
activities might be increased and others reduced.
    Because all these decisions lie with the Appropriations 
Committee, a further explanation of the nature of these 
programs may be helpful.
    Every discretionary spending category has unique 
characteristics, defying simple comparisons among them. For 
example, national defense often is viewed as a kind of stand-
alone activity by those who, correctly, view it as a pre-
eminent obligation of the Federal Government. But several other 
spending categories are also intrinsically Federal--such as 
international affairs, or veterans benefits--even though their 
spending totals are much smaller than defense.
    On the other hand, various other priorities have evolved 
from their own sets of circumstances, so that their importance 
cannot be measured by Federal dollar amounts alone. It is 
widely agreed, for instance, that education is one of the 
Nation's highest priorities. Yet the Federal Government 
provides only about 7 percent of the K-12 education funding 
that gets spent nationally--the rest comes from States and 
localities. Similarly, the Federal Government's share of energy 
or discretionary health care spending might seem relatively 
small compared with the importance of these activities 
nationally; but that is mainly due to the significant 
nongovernment role in these areas. In none of these cases does 
the Federal funding level suggest that these activities are 
less important to the Nation. It is simply a product of how 
these priorities have developed over time--including how much 
State and local or nongovernment support they receive.
    Some also contend that, with regard to controlling overall 
Federal spending, discretionary accounts are smaller in total 
and far less problematic than mandatory entitlement spending 
(discussed below). This may be true, but it ignores two 
critical points. First, controlling the budget means 
controlling all spending. Second, all government programs--
mandatory or discretionary--can benefit from oversight and 
reform; and as noted above, these are driven by spending 
control. Discretionary programs are not immune.

                       General Mandatory Spending

    The Federal Government's entitlement programs are well-
intended, and provide valued assistance to millions of 
Americans. But their costs are becoming unmanageable.
    Currently, entitlement spending is growing at about 6 
percent per year--faster than the economy, faster than 
inflation, faster than normal long-term revenue growth, and far 
beyond the government's (or the economy's) means of sustaining 
it. To put this another way: if the Federal budget were 
balanced today, the spending growth of these entitlements would 
drive it back into deficit a year from now; and this is not 
counting the full baby-boom retirements.
    Not surprisingly, entitlement spending also is consuming 
increasing shares of the overall budget. In 1995, entitlements 
(excluding interest) consumed 48.7 percent of total Federal 
spending. By 2005, they had reached 53.4 percent. By 2016--if 
left unreformed--they will take up more about 64 percent of the 
budget.
    These rates of growth--in programs that tend to run on 
automatic pilot, without regular oversight or reform--are 
crowding out funding for other priorities, such as education, 
veterans' health care, environmental protection, housing, and 
many others. As a result, they are crippling Congress's ability 
to adapt to changing demands and priorities--making it all but 
impossible to budget in any meaningful way.
    Clearly, this spending growth must be controlled. But the 
process does not, and should not, entail merely ``cutting'' 
programs or resources. Rather, it demands reform. So Congress 
last year resumed the practice of reform with the Deficit 
Reduction Act [DRA] of 2005 (the first time since the Balanced 
Budget Act of 1997 that entitlements had been addressed 
comprehensively). The measure included reforms that provided 
fairer cost-sharing among Medicaid beneficiaries and limited 
the ability of wealthy persons to qualify for Medicaid nursing 
home coverage; improved the targeting of assistance under 
programs such as foster care and Supplemental Security Income; 
and reduced lender subsidies in the government's student loan 
programs. Because of these and other reforms, the bill also 
will save taxpayers almost $40 billion over the next 5 years.

                                 Reform

    But--to repeat an earlier point--reform cannot and should 
not be a merely occasional practice. It must be ongoing. 
Government programs require consistent and regular nurturing by 
Congress to assure they are up to date, efficient, and 
effective. This is why oversight and reform must go hand-in-
hand with budgeting.

                           Entitlement Reform

    Even small steps in reform can be valuable. So this budget 
follows on the Deficit Reduction Act with modest goals--reforms 
that will yield about $6.75 billion in savings over 5 years.
    But it is the quality of reforms that truly matter; and 
among the ways to describe those implied by this budget are the 
following:

- Eliminating Unnecessary Corporate Subsidies. Apart from 
    direct subsidies, the government sometimes provides various 
    breaks or loopholes that amount to the same thing. These 
    subsidies violate the very market principles that have made 
    the U.S. economy strong. Many of them can and should be 
    reduced or eliminated.

- Eliminating Fraud and Overpayments. As noted earlier, the 
    Federal Government's public assistance programs are well-
    intended and provide much-needed help to many Americans. 
    But many of them are also subject to fraud, abuse, and 
    overpayments. The persistence of these problems is unfair 
    to those who seek assistance honestly, and an excessive 
    burden to taxpayers as well. These problems can be 
    corrected only through constant oversight and reform.

- Strengthening the Nation's Pension System. When people 
    retire, they should feel secure about the pension benefits 
    they have been promised. Companies often do not fully fund 
    their pension plans, intensifying the strain on the already 
    cash-strapped Pension Benefit Guaranty Corporation [PBGC]--
    the Federal agency charged with insuring those same plans 
    should they be terminated. The government should provide an 
    incentive for these companies to fully fund their pension 
    plans. So this budget incorporates House-passed legislation 
    requiring companies to act more responsibly, by fully 
    funding their plans. This will help reduce pension-plan 
    under-funding, reinforce workers' pension benefits, and 
    limit the risk to taxpayers of a massive PBGC bailout.

- Restoring Market Forces. The U.S. economy is strong because 
    market forces are allowed to work freely. But the 
    government sometimes misses opportunities to apply these 
    forces. It only makes sense to employ market thinking--
    wherever reasonable and possible--to the activities of the 
    Federal Government.

                    Emergency Supplemental Spending

    No one could have anticipated the scale of Hurricane 
Katrina's devastation, or the massive costs of recovery. But 
every year brings unforeseen events--whether they are floods, 
earthquakes, hurricanes, forest fires, or even military 
operations overseas. The emergency mechanism in the budget 
process--which exempts this spending from the usual budget 
disciplines--is designed to accommodate this reality. But even 
if the specific events are unforeseen, the fact that some 
emergency will arise is almost routine. Indeed, Congress has 
made use of supplementals as far back as 1790, and has provided 
emergency supplemental spending of some amount in every year 
since the emergency concept was formally introduced in 1990.
    As is well known, the amount of emergency funding--outside 
the budget--has increased sharply in recent years, principally 
due to the war and Katrina. It has mushroomed from $16.9 
billion in 2000 (about 2.9 percent of total discretionary 
spending) to $160.4 billion in 2005 (19.5 percent of 
appropriated funds). Even if the additional spending is 
justified, the continued practice of adding on and increasing 
these amounts outside the regular budget is not.
    That is why this budget includes $4.4 billion in budget 
authority to anticipate potential natural disasters. The $4.4 
billion--in an emergency reserve fund for fiscal year 2007--is 
the median of emergency spending during the past 10 years for 
accounts typically associated with spending in response to 
natural disasters. But this is just a start--and more can be 
done.
    This year, the Budget Committee will begin to reform the 
budget process itself, to better anticipate actual spending--
including what is currently spent outside the normal budget 
process. It will establish two reserve funds: one for natural 
disasters and another for the war on terrorism. The Budget 
Committee will vote to increase the limits in the budget 
resolution when any spending measure exceeds the reserve for 
natural disasters.

                               Conclusion

    As mentioned at the outset, the principal concerns of this 
country have changed since 2001. Some of the changes were by 
choice, some not--and some have been expected for decades. As a 
result, Congress has a choice: Members can delude themselves 
the customary ways of thinking and approaching these problems--
by mechanically spending and taxing more--will still work. Or 
Congress can pretend the problems will go away.
    Or, Members can embrace the new challenges at hand, and 
start the process of addressing them. This budget answers by 
trusting strength, spending control, and a commitment to 
ongoing reform. That is the plan embraced by this budget.

                  The Economy and Economic Assumptions


             Strong Growth in Jobs and the Economy Continue

- The economy turned in a solid performance in 2005, despite 
    further sharp increases in energy prices and devastation 
    caused by hurricanes.
  --Growth in the inflation-adjusted (real) gross domestic 
        product [GDP] is estimated to have been 3.5% in 2005, 
        even though growth slowed substantially in the fourth 
        quarter as a result of hurricane-related disruptions 
        and other factors that are likely to prove transitory.
  --Close to two million new payroll jobs were created last 
        year. The economy has seen 30 consecutive months of job 
        gains, adding close to 5 million new jobs to payrolls.
  --The housing market continued to be vibrant throughout last 
        year, with some signs of cooling late in the year from 
        the rapid pace of expansion observed over the past few 
        years. Robust gains in real estate values in the past 
        few years, combined with rises in stock prices since 
        2002, have encouraged consumer spending and helped keep 
        economic activity moving forward in 2005.
  --Inflation and inflation-expectations remained relatively 
        well-contained, and at historically low rates, 
        throughout 2005 according to the Federal Reserve.
  --Robust growth in the economy and continued low, but slowly 
        rising, inflation encouraged the Federal Reserve to 
        tighten monetary policy by continuing to lift short-
        term interest rates throughout the year in 2005.
  --Despite those rate increases, long-term interest rates 
        remain low by historical standards. Thus, credit 
        conditions remained supportive for businesses last 
        year, facilitating a rapid expansion of business 
        investment spending.
  --The major factors that contributed to the strong 
        performance of the U.S. economy in 2005 remain in 
        place, including the pro-growth tax policies enacted 
        under the current administration.
- Looking forward, public and private forecasters expect the 
    economy to continue in a sustained expansion, with solid 
    real growth, ongoing payroll jobs gains, and continued low 
    unemployment and inflation.

- In international perspective, the performance of the U.S. 
    economy has been particularly impressive, adding more jobs 
    in the past two-and-a-half years than Japan and the 
    European Union combined. Growth in GDP in the U.S. has 
    outpaced every other major industrial country since 2001.

- Over the past 4 years, we've seen remarkable changes in our 
    Nation's economic picture and no one should underestimate 
    the challenges we've had to overcome. Our Nation and our 
    economy have had to endure the bursting of the stock market 
    bubble; corporate scandals; a recession; the terrorist 
    attacks and their aftermath; the uncertainties of an 
    international war against terrorism, including conflicts in 
    Afghanistan and Iraq; energy price shocks; and devastation 
    from hurricanes.

- The resilience of the U.S. economy in the face of these major 
    shocks are a testament to the fundamental strength and 
    flexibility of the U.S. economy and the efforts and 
    determination of American workers.

- In addition, fiscal and monetary policies combined to play 
    major roles in keeping the adverse effects of the 2000-01 
    slowdown and recession milder than otherwise would have 
    been the case. Pro-growth tax policies helped boost the 
    economy in its recovery from the recession and continue to 
    sustain the current economic expansion.

- Fiscal policy actions have been particularly aggressive in 
    working to assist those devastated by the hurricanes last 
    year and to provide more general tax relief. Tax relief set 
    in place in 2001 helped boost the economy quickly out of 
    its mild recession; relief in 2003 helped move tax rates 
    toward those more conducive to economic growth. Three major 
    tax relief bills became law over 2001-03:
  --The Economic Growth and Tax Relief Reconciliation Act of 
        2001 (June 2001) provided for immediate and phased-in 
        reductions in income taxes and tax rates, as well as 
        other incentives and tax relief measures.
  --The Job Creation and Worker Assistance Act of 2002 (March 
        2002)--in addition to providing extended unemployment 
        benefits and special tax relief following September 
        11--provided tax relief that included business 
        investment tax incentives from ``bonus depreciation'' 
        of equipment and software.
  --The Jobs and Growth Tax Relief Reconciliation Act of 2003 
        [JGTRRA] (May 2003) accelerated the scheduled income 
        tax relief and tax rate reductions of the 2001 
        legislation, increased the ``bonus depreciation'' 
        business investment tax incentives, and reduced 
        dividend and capital gains tax rates.
- Since enactment of the pro-growth tax relief provided by 
    JGTRRA:
  --GDP growth has averaged 3.8 percent.
  --Growth in business fixed investment has averaged 8.5 
        percent.
  --Growth in business investment in equipment and software has 
        averaged 10.9 percent.
  --The Dow Jones Industrial Average stock index has increased 
        29 percent and the NASDAQ stock index has increased 48 
        percent.
  --Monthly payroll job gains have averaged 150,000.
  --Capital gains realizations have roughly doubled and taxes 
        paid on those gains have risen by about 60 percent.
  --The number of Standard and Poor's companies paying 
        dividends increased, reversing a 25 year decline.
- Monetary policy also played an important role in bolstering 
    the economy. From January2001 through June 2003, the 
Federal Reserve [Fed] reduced its target for overnight interest rates 
from 6.5 percent to 1 percent in 13 separate cuts. Lower interest rates 
helped to boost interest-sensitive spending, including consumer durable 
goods, business equipment investment, and residential housing 
construction. As the economy emerged from the mild recession of 2001 
and began to display sustained traction and robust growth, the Federal 
Reserve acted to remove its low-interest-rate policy that was designed 
to accommodate strengthening economic growth. Since its policy meeting 
in June 2004, the Fed has raised its target overnight interest rate 
from the historic low of 1 percent to the current 4.75 in a sequence of 
15 quarter-point increases.

- As a testimony to the durability of the current economic 
    expansion, real GDP growth has averaged 3.3 percent since 
    the Fed began removing its policy accommodation and payroll 
    job gains have totaled close to 3.4 million new jobs.

                     The Current Economic Situation

- Incoming data support the view that the U.S. economy is in a 
    sustained economic expansion with continued job gains, 
    robust real growth in output of goods and services, and low 
    unemployment and inflation.

- The list of ``Good News'' confirming the economy's solid 
    performance is impressive, including:
  --Gross Domestic Product: The inflation-adjusted (real) gross 
        domestic product [GDP] grew at over 3.5 percent last 
        year. Real GDP has grown for 17 consecutive quarters, 
        with average annualized growth of 3.1 percent.
  --Employment: Payroll employment rose by 243,000 jobs in 
        February and an average of 228,000 over the past four 
        months. There have been 30 consecutive months of 
        payroll job gains, adding close to 5 million new jobs 
        to the Nation's payrolls. 2.3 million new payroll jobs 
        have been added over the past year.
  --Unemployment Rate: The unemployment rate inched up to 4.8 
        percent in February, from a 4\1/2\ year low of 4.7 
        percent in January, remaining well below the average in 
        each of the past three decades. The unemployment rate 
        has fallen from 6.3 percent in June 2003 to the current 
        4.8 percent, a decline of 1.5 percent in the jobless 
        rate.
  --Productivity: Non-farm labor productivity (output per hour 
        of labor) has risen at an average annual rate of 3.3 
        percent since 2001, faster than any five-year period in 
        the 1970s, 1980s or 1990s. Productivity growth is a key 
        driver of increases in wages and living standards in 
        the long run.
  --Manufacturing: The manufacturing sector of the economy has 
        been expanding for 33 consecutive months, according to 
        the Institute for Supply Management [ISM] manufacturing 
        index.
  --Services: The services sector of the economy has been 
        expanding for 35 consecutive months, according to the 
        ISM non-manufacturing (services) index. The services 
        sector accounts for a majority of the Nation's output.
  --Business Investment: From its trough in the first quarter 
        of 2003, business investment spending has increased by 
        25 percent, a sign of renewed business confidence. 
        Business investment in equipment and software has risen 
        by 32 percent since the first quarter of 2003.
  --Household Net Worth: The total net worth of households and 
        non-profit organizations rose 2.7 percent in the third 
        quarter to a record high of $51.1 trillion, surpassing 
        the previous record established in the second quarter. 
        Household net worth has risen for 12 consecutive 
        quarters. Wealth has risen not just because of housing. 
        Deposits--checking accounts, savings accounts and so 
        on--are at a record high and are larger as a share of 
        disposable (after-tax) income than at any time since 
        1993.

                 The Role of Budget Resolution Policies

- One of the guiding principles of this budget's policies is 
    that our nation's economy must continue to grow and to 
    create jobs to serve as a solid foundation for reducing the 
    budget deficit. Economic growth alone may not be able to 
    eliminate the deficit--but without solid economic growth, 
    efforts to reduce budget deficits will be futile.

- One of the fundamental ways that this budget encourages 
    economic growth is by supporting the policies that have 
    been working to enhance incentives for continued job 
    creation, investment by businesses in plant and equipment, 
    and increased disposable (after-tax) income for consumers. 
    We will continue to maintain the tax relief we passed and 
    keep the tax burden from rising.

- A warning of negative consequences of not continuing with 
    pro-growth tax policies can be found in recent projections 
    from the non-partisan Congressional Budget Office [CBO]. 
    CBO forecasts that economic growth will slow in the long 
    run (i.e., beyond 2011) if recently enacted tax relief is 
    allowed to expire, as scheduled under current law. In fact, 
    one important factor that CBO highlighted as contributing 
    to the forecasted slowdown was that the scheduled 
    expiration of various tax provisions in 2011 will ``* * * 
    discourage work by increasing marginal tax rates.''

- In addition to maintaining a pro-growth stance with tax 
    policy, it is of critical importance to control Federal 
    spending. All spending must be paid for, either through 
    taxes or borrowing--and both are burdens on the economy. 
    And for that simple reason alone, controlling spending is 
    itself a policy for sustaining stronger economic growth.

- Reinforcing this view, former Federal Reserve Chairman 
    Greenspan recently stated that: ``Addressing the 
    government's own imbalances will require scrutiny of both 
    spending and taxes. However, tax increases of sufficient 
    dimension to deal with our looming fiscal problems arguably 
    pose significant risks to economic growth and the revenue 
    base. The exact magnitude of such risks is very difficult 
    to estimate, but, in my judgment, they are sufficiently 
    worrisome to warrant aiming, if at all possible, to close 
    the fiscal gap primarily, if not wholly, from the outlay 
    side.''

- The underlying policies of the budget resolution--including 
    sustained tax relief, restrained spending growth, declining 
    deficits, and a stable or falling debt-to-GDP ratio--
    represent a favorable set of policies for the performance 
    of the economy.

                          The Economic Outlook

- An outlook for continued solid growth in the economy over a 
    2006-11 projection period for the budget resolution is 
    shared in the economic projections from the administration, 
    CBO, and the consensus of private forecasters compiled by 
    Blue Chip Economic Indicators (see Table 1).
  --The various forecasts project real GDP growth in 2006 in 
        the range of 3.4 percent to 3.6 percent: 3.3 percent 
        for the Blue Chip consensus; 3.4 percent for the 
        administration; and 3.6 percent for CBO.
  --Relatively strong growth is expected for the entire 
        forecast horizon 2006-11, with the administration and 
        the Blue Chip consensus projecting real GDP growth to 
        average about 3.2 percent per year, and CBO slightly 
        higher at 3.3 percent.
  --Reflecting continued expansion in jobs that accompanies 
        continued economic growth and some expected slowdown in 
        labor force growth as the baby boom generation retires, 
        the unemployment rate is projected to continue 
        throughout the projection period in the 4.9 to 5.1 
        percent range--low by historical standards.
  --Inflation is expected to moderate with projected easing of 
        energy prices after 2006. Consumer price inflation, for 
        example, is expected to ease from close to 3.0 percent 
        during 2006 to between 2.0 and 2.5 percent for the 
        remainder of the projection period.
  --Short-term interest rates (i.e., 3-month Treasury bill 
        rates) are expected to settle at close to 4.5 percent 
        over the projection period while longer-term rates are 
        expected to edge up, but remain low by historical 
        standards. The 10-year Treasury note yield is projected 
        to rise from around 5.0 percent in 2006 to somewhere 
        between 5.2 percent and 5.4 percent, depending on the 
        forecaster.

- CBO's annual economic assumptions were adopted for use in the 
    budget resolution and are shown in Table 2.

                  TABLE 1.--ECONOMIC PROJECTIONS: ADMINISTRATION, CBO, AND PRIVATE FORECASTERS
                                                [Calendar years]
----------------------------------------------------------------------------------------------------------------
                                                                                                Projected annual
                                                                                                    average
                                                2006    2007    2008    2009    2010    2011  ------------------
                                                                                                   2006-2011
----------------------------------------------------------------------------------------------------------------
Real GDP (percent change, year over year):
  Administration.............................    3.4     3.3     3.3     3.1     3.1     3.1                3.2
  CBO........................................    3.6     3.4     3.4     3.3     3.0     2.8                3.3
  Blue Chip, March*..........................    3.4     3.0     3.2     3.1     3.3     3.2                3.2
GDP Price Index (percent change, year over
 year):
  Administration.............................    2.4     2.2     2.1     2.1     2.1     2.1                2.1
  CBO........................................    2.4     1.8     1.8     1.8     1.8     1.8                1.9
  Blue Chip, March*..........................    2.6     2.2     2.3     2.2     2.3     2.2                2.3
Consumer Price Index (percent change, year
 over year):
  Administration.............................    3.0     2.4     2.4     2.4     2.4     2.5                2.5
  CBO........................................    2.8     2.2     2.2     2.2     2.2     2.2                2.3
  Blue Chip, March*..........................    2.9     2.4     2.4     2.5     2.4     2.5                2.4
Unemployment Rate (percent, annual average):
  Administration.............................    5.0     5.0     5.0     5.0     5.0     5.0                5.0
  CBO........................................    5.0     5.0     5.1     5.2     5.2     5.2                5.1
  Blue Chip, March*..........................    4.8     4.9     4.9     4.9     5.0     4.9                4.9
3-Month Treasury Bill Rate (percent, annual
 average):
  Administration.............................    4.2     4.2     4.3     4.3     4.3     4.3                4.3
  CBO........................................    4.5     4.5     4.4     4.4     4.4     4.4                4.4
  Blue Chip, March*..........................    4.7     4.7     4.4     4.3     4.4     4.4                4.5
10-Year Treasury Note Yield (percent, annual
 average):
  Administration.............................    5.0     5.3     5.5     5.6     5.6     5.6                5.4
  CBO........................................    5.1     5.2     5.2     5.2     5.2     5.2                5.2
  Blue Chip, March*..........................    4.8     5.0     5.3     5.3     5.4     5.4                5.2
----------------------------------------------------------------------------------------------------------------
*Blue Chip March 2006 for 2006-2007; longer term projections from Blue Chip October 2005.


                             TABLE 2.--ECONOMIC ASSUMPTIONS OF THE BUDGET RESOLUTION
                                           [Calendar years, 2006-2011]
----------------------------------------------------------------------------------------------------------------
                                                              2006     2007     2008     2009     2010     2011
----------------------------------------------------------------------------------------------------------------
Real GDP (percent change, year over year).................      3.6      3.4      3.4      3.3      3.0      2.8
GDP Price Index (percent change, year over year)..........      2.4      1.8      1.8      1.8      1.8      1.8
Consumer Price Index (percent change, year over year).....      2.8      2.2      2.2      2.2      2.2      2.2
Unemployment Rate (percent, annual average)...............      5.0      5.0      5.1      5.2      5.2      5.2
3-month Treasury Bill Rate (percent, annual average)......      4.5      4.5      4.4      4.4      4.4      4.4
10-year Treasury Note Yield (percent, annual average).....      5.1      5.2      5.2      5.2      5.2      5.2
Note: Nominal GDP ($ Billions, annual average)............   13,262   13,959   14,696   15,455   16,208   16,954
----------------------------------------------------------------------------------------------------------------

                                Revenue

                                Summary

    The revenue levels reflect all of the Federal Government's 
various tax receipts that are ``on budget.'' This includes 
individual income taxes; corporate income taxes; excise taxes, 
such as the gasoline tax; and other taxes, such as estate and 
gift taxes. 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 tax portion of Medicare, the Federal 
Unemployment Tax Act [FUTA] payroll tax, railroad retirement 
and other retirement systems) are all on budget. Customs 
duties, tariffs, and other miscellaneous receipts also are 
included in the budget's revenue baseline.

                           Revenue Over Time

    Total Federal tax revenues have averaged about 18 percent 
of gross domestic product [GDP] over the past 50 years. Even 
though this budget intends to prevent statutory tax increases, 
total Federal taxes are projected to rise from 17.5 percent of 
GDP in fiscal year 2006 to 17.9 percent of GDP in 2011--a 
return to the historical average level. This increase in taxes 
as a share of GDP occurs because of the improving economy and 
because of provisions in the tax code that are not indexed for 
inflation nor for real, inflation-adjusted, income growth. This 
phenomenon highlights the need to adjust tax policies 
periodically to avoid an ever-increasing tax burden on our 
economy.
    On-budget revenue saw a 1-year rise of 17.2 percent from 
2004 to 2005, to $1.576 trillion. This included a 14.6-percent 
increase in individual income tax receipts and a 47-percent 
increase in corporate income tax receipts. In addition, despite 
a 2003 reduction in the top capital gains tax rate to 15 
percent from 20 percent, capital gains receipts increased 20 
percent in 2003, 48 percent in 2004, and 13 percent in 2005.

                Summary of Committee-Reported Resolution

    The budget resolution calls for $1,780.666 trillion in on-
budget revenue for fiscal year 2007, and $10,039.909 trillion 
over the period of fiscal years 2007 through 2011. Total 
revenue in the budget resolution is $2,422.395 trillion for 
fiscal year 2007 and $13,597.594 trillion over fiscal years 
2007 through 2011. The resolution assumes policies with a net 
revenue-reducing impact of $39.021 billion for fiscal year 2007 
and $227.821 billion over the period of fiscal years 2007 
through 2011. These effects are principally the result of 
preventing automatic tax increases that otherwise would occur.
    Although the budget resolution does not require specific 
changes in tax policy, the revenue levels of the resolution are 
consistent with general policies of not increasing taxes 
compared to policies currently in place, and of accommodating 
House-passed tax legislation. In particular, the resolution 
includes adjustments to revenue of sufficient size to 
accommodate continuation of specific provisions that are set to 
expire, including:

--No tax increase resulting from the individual alternative 
        minimum tax [AMT]. The resolution provides for an 
        extension of increased individual AMT exemption 
        amounts. It anticipates that Congress will act to 
        prevent a reduction in the exemptions, to $45,000 for 
        joint filers and $33,750 for single filers.
--No tax increase resulting from the loss of the State sales 
        tax deduction. The resolution provides for an extension 
        of the option to deduct State sales taxes, rather than 
        State income taxes. This policy is especially important 
        in States that have no income tax, such as Florida and 
        Texas.
--No tax increase on families with college students. The 
        resolution could accommodate an extension of the 
        deduction for higher education expenses, which provides 
        relief to parents paying for their child's college 
        education.

    The budget resolution assumes extension of the 2001 and 
2003 tax relief legislation, as well as extension of other 
expiring tax provisions. It also could accommodate pension 
reform legislation already passed by the House and currently in 
conference committee.
    It is important to remember, however, that while the budget 
resolution could accommodate all of the above policies, it 
merely sets the aggregate on-budget revenue level of the 
Federal government for the next 5 years. It is the 
responsibility of the Committee on Ways and Means to make the 
specific changes to the tax laws to achieve these levels.
                   Function-by-Function Presentation

    The budget is the broad blueprint of the Congress's general 
priorities. It is not designed or intended to bind the 
committees of Congress to any specific program choices. Within 
this framework, some priority areas may be increased, and lower 
priorities reduced. Those details will be worked out in the 
next round, when the committees of jurisdiction write their 
legislative provisions as is envisioned by the procedures of 
the Budget Act. The Budget Committee's role is to set a broad, 
overall recommendation that reflects the Nation's priorities, 
and set the stage for the programmatic decisions that will be 
made by the committees of jurisdiction. The following 
presentation shows the resolution's recommended distribution of 
budget authority and outlays according to broad categories 
called ``budget functions.''
    The budget functions presented here are as follows:

          050  National Defense
          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 Summary

    National Defense 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; the remaining funding in the 
function applies to atomic energy defense activities of the 
Department of Energy, and other defense-related activities.
    For the 5 years ending in 2006, budget authority in this 
function increased at an average annual rate of 10.9 percent, 
to $560.5 billion. During the same time period, outlays rose to 
$525.5 billion, an 11.5-percent average annual growth rate. The 
largest component of this was the budget of the Department of 
Defense, whose budget authority grew from $318.8 billion in 
2001 to $537.4 billion in 2006. The average annual growth rate 
for the 5 years ending in 2006 is 11 percent.

                Summary of Committee-Reported Resolution

    The resolution calls for $512.9 billion in budget authority 
and $534.9 billion in outlays in fiscal year 2007. 
Discretionary spending is $510.2 billion in budget authority 
and $532.2 billion in outlays in fiscal year 2007. Mandatory 
spending in 2007 is $2.7 billion in budget authority and $2.7 
billion in outlays. The 5-year totals for budget authority and 
outlays are $13.1 billion and $13.1 billion, respectively. The 
resolution levels include the effects of the enacted fiscal 
year 2006 supplementals. The levels also reflect the effects of 
the House-passed supplemental for fiscal year 2006.

                           MANDATORY SPENDING

    The spending levels for National Defense (Function 050) are 
based on the Congressional Budget Office's revised baseline 
spending projections under current law and policies. These 
levels were adjusted to accommodate legislation that will amend 
the death gratuity provision in the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163). 
The provision ensures that 300 surviving families of members 
who died while on active duty after 7 October 2001 receive a 
retroactive payment of $150,000 due to an increase in 
Servicemembers' Group Life Insurance that took effect on 1 
September 2005. The spending levels also reflect $175 million 
over 5 years in reconciled mandatory savings (see 
reconciliation discussion in this report). The Committee on 
Armed Services will determine the policies that will achieve 
the required savings.

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office. The Committee on 
Appropriations will determine how the overall level of 
discretionary funding is distributed across its 11 bills, and 
how much is appropriated for individual programs.
    The resolution includes a designation for contingency 
operations of $50 billion for additional needs in Afghanistan, 
Iraq, and the global war on terrorism. This is a mid-range 
estimate for anticipated annual costs. It is not an attempt to 
predetermine the scope or intensity of operations, troops 
levels, or which weapons and supplies DOD will need, but rather 
an effort to make the budget reflect a likely future outlay.
                  FUNCTION 150: INTERNATIONAL AFFAIRS

                              ----------                              


                            Function Summary

    This category includes international development and 
humanitarian assistance; international security assistance; the 
conduct of foreign affairs; foreign information and exchange 
activities; and international financial programs. The major 
agencies in this function include the Departments of 
Agriculture, State and Treasury, the United States Agency for 
International Development, and the Millennium Challenge 
Corporation.
    For the 5-year period ending in 2006, International Affairs 
budget authority rose at an annual average rate of 4.8 percent, 
from $25.1 billion to $31.8 billion. During the same period, 
outlays rose from $22.4 billion to $34.2 billion, an 8.8-
percent average annual growth rate.

                Summary of Committee-Reported Resolution

    The resolution calls for $31.2 billion in budget authority 
and $34.3 billion in outlays in fiscal year 2007. The function 
totals are $167.8 billion in budget authority and $166.8 
billion in outlays over 5 years. Mandatory spending is -$1.8 
billion in budget authority and -$2.8 billion in outlays in 
fiscal year 2007, and totals -$4.5 billion in budget authority 
and -$13.1 billion in outlays over 5 years. Discretionary 
spending is $33.0 billion in budget authority and $37.1 billion 
in outlays in fiscal year 2007. The resolution levels include 
the effects of enacted fiscal year 2006 supplementals. The 
levels also reflect the effects of the House-passed 
supplemental for fiscal year 2006.
    The negative budget authority and outlay levels in 
mandatory spending reflect receipts of the foreign military 
sales trust fund, the repayment of loans and credits to foreign 
nations, and the liquidation of economic assistance loans, 
foreign military financing loans, Export-Import Bank loans, and 
housing and other credit guaranty programs.

                           MANDATORY SPENDING

    The spending levels for International Affairs (Function 
150) are based on the Congressional Budget Office's revised 
baseline spending projections under current law and policies, 
adjusted for reconciliation directives and non-reconciled 
mandatory policies. These levels were further adjusted to 
accommodate legislation to reauthorize foreign affairs 
programs, the appropriations for which are also reflected in 
the Committee's 302(a) allocations. It also reflects $250 
million over 5 years in reconciled mandatory savings (see the 
reconciliation discussion in this report). The committee of 
jurisdiction over the reconciled savings will determine the 
policies to achieve the required savings.

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office, with various adjustments. The 
Committee on Appropriations will determine how the overall 
level of discretionary funding is distributed across its 11 
bills, and how much is appropriated for individual programs.
          FUNCTION 250: GENERAL SCIENCE, SPACE AND TECHNOLOGY

                              ----------                              


                            Function Summary

    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 contains general 
science funding, including the budgets for the National Science 
Foundation [NSF], and the Department of Energy [DOE] Office of 
Science.
    For the 5-year period ending in 2006, budget authority in 
this function rose an average of 3.5 percent per year, to $25.0 
billion. During the same period, outlays rose from $18.6 
billion to $24.1 billion, a 4-percent average annual growth 
rate.

                Summary of Committee-Reported Resolution

    The resolution calls for $25.9 billion in budget authority 
and $25.1 billion in outlays in fiscal year 2007. The function 
totals are $141.4 billion in budget authority and $136.1 
billion in outlays over 5 years. Mandatory spending is $114 
million in budget authority and $73 million in outlays in 
fiscal year 2007, and totals $593 million in budget authority 
and $502 million in outlays over 5 years. Discretionary 
spending is $25.8 billion in budget authority and $25.0 billion 
in outlays in fiscal year 2007. The resolution levels include 
the effects of enacted fiscal year 2006 supplementals. The 
levels also reflect the effects of the House-passed 
supplemental for fiscal year 2006.

                           MANDATORY SPENDING

    The mandatory spending level for General Science, Space, 
and Technology (Function 250) is based on the Congressional 
Budget Office's revised baseline spending projections under 
current laws and policies.

                         DISCRETIONARY SPENDING

    The discretionary spending level for General Science, 
Space, and Technology (Function 250) is based on the 
Presidents' budget as re-estimated by the Congressional Budget 
Office, with various adjustments. The Committee on 
Appropriations will determine how the overall level of 
discretionary funding is distributed across its 11 bills, and 
how much is appropriated for individual programs.
    In a budget with an overall discretionary increase of 3.6 
percent, the committee assumes robust funding for the American 
Competitiveness Initiative, portions of which are absorbed in 
such functional categories in this resolution as Functions 370 
(Commerce) and 920 (Allowances).
                          FUNCTION 270: ENERGY

                              ----------                              


                            Function Summary

    This category includes civilian energy and environmental 
programs of the Department of Energy [DOE]. Function 270 also 
includes the Rural Utilities Service of the Department of 
Agriculture, the Tennessee Valley Authority [TVA], the Federal 
Energy Regulatory Commission, and the Nuclear Regulatory 
Commission. (It does not include DOE's national security 
activities--the National Nuclear Security Administration--which 
are in Function 050, or its basic research and science 
activities, which are in Function 250.)
    Budget authority in this function was $1.8 billion in 2006 
with outlays of $2.0 billion. Receipts, repayments, and 
electricity sales (negative spending) result in sharp year-by-
year fluctuations in this function's budget authority and 
outlays.

                Summary of Committee-Reported Resolution

    The resolution calls for $2.3 billion in budget authority 
and $915 million in outlays in fiscal year 2007. The function 
totals are $11.6 billion in budget authority and $4.1 billion 
in outlays over 5 years. Mandatory spending is -$1.6 billion in 
budget authority and -$3.0 billion in outlays in fiscal year 
2007. Discretionary spending is $3.8 billion in budget 
authority and $3.9 billion in outlays in fiscal year 2007.

                           MANDATORY SPENDING

    The mandatory levels for Energy (Function 270) are based on 
the Congressional Budget Office's revised baseline spending 
projections under current law and policies.

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office. The Committee on 
Appropriations will determine how the overall level of 
discretionary funding is distributed across its 11 bills, and 
how much is appropriated for individual programs.
            FUNCTION 300: NATURAL RESOURCES AND ENVIRONMENT

                              ----------                              


                            Function Summary

    The Natural Resources and Environment category consists 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].
    Budget authority in this function for the 5-year period 
ending in 2006 rose an average of 3.9 percent per year, to 
$35.2 billion. During the same period, outlays increased at a 
4.9-percent rate, to $32.6 billion.

                Summary of Committee-Reported Resolution

    The resolution calls for $29.7 billion in budget authority 
and $33.0 billion in outlays in fiscal year 2007. The function 
totals are $145.0 billion in budget authority and $153.1 
billion in outlays over 5 years. Mandatory spending is $1.5 
billion in budget authority and $0.4 billion in outlays in 
fiscal year 2007. Over the 2007-11 period, mandatory spending 
totals $6.2 billion in budget authority and $4.7 billion in 
outlays. Discretionary spending is $28.2 billion in budget 
authority and $32.6 billion in outlays in fiscal year 2007. The 
resolution levels include the effects of enacted fiscal year 
2006 supplementals. The levels also reflect the effects of the 
House-passed supplemental for fiscal year 2006.

                           MANDATORY SPENDING

    The mandatory spending levels for Natural Resources and 
Environment (Function 300) are based on the Congressional 
Budget Office's revised baseline spending projections under 
current law and policies. The levels were adjusted upwards by 
$6 million over 5 years to accommodate mandatory spending in 
the Threatened and Endangered Species Recovery Act, and further 
increased, by $22 million, to accommodate mandatory spending 
associated with reauthorization of the Water Resources 
Development Act, which are also reflected in the Committee's 
302(a) allocations (see 302(a) allocations). The mandatory 
spending level does not include any savings from policies 
associated with the Arctic National Wildlife Refuge, nor is 
there a reconciliation directive for the Committee on 
Resources.

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office. The Committee on 
Appropriations will determine how the overall level of 
discretionary funding is distributed across its 11 bills, and 
how much is appropriated for individual programs.
                       FUNCTION 350: AGRICULTURE

                              ----------                              


                            Function Summary

    The agriculture category 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.
    Budget authority and outlays in this function have declined 
by less than 1 percent per year over the past 5 years, to $28.3 
billion. During the same time period, outlays increased by less 
than 1 percent to $26.5 billion. Spending for fiscal year 2006 
was near the average over the preceding 5 years, but spending 
across the period has been highly variable because agricultural 
commodity prices fluctuated widely. This has a significant 
impact on mandatory programs, which account for the vast 
majority of spending within Function 350.

                Summary of Committee-Reported Resolution

    The resolution calls for $27.4 billion in budget authority 
and $26.8 billion in outlays in fiscal year 2007. The function 
totals are $123.5 billion in budget authority and $120.0 
billion in outlays over 5 years. Mandatory spending is $21.7 
billion in budget authority and $20.8 billion in outlays in 
fiscal year 2007. Over the five year period, mandatory spending 
totals $95.5 billion in budget authority and $91.8 billion in 
outlays. Discretionary spending is $5.7 billion in budget 
authority and $5.9 billion in outlays in fiscal year 2007. The 
resolution levels include the effects of enacted fiscal year 
2006 supplementals. The levels also reflect the effects of the 
House-passed supplemental for fiscal year 2006.

                           MANDATORY SPENDING

    The spending levels for Agriculture (Function 350) are 
based on the Congressional Budget Office's revised baseline 
spending projections under current law and policies. These 
levels were adjusted to reflect $51 million over 5 years in 
reconciled mandatory savings (see reconciliation). The 
Agriculture Committee will determine the policies to achieve 
the required savings.

                         DISCRETIONARY SPENDING

    The discretionary level for Agriculture (Function 350) for 
fiscal year 2007 is based on the President's level as re-
estimated by the Congressional Budget Office. The Committee on 
Appropriations will determine how the overall level of 
discretionary funding is distributed across its 11 bills, and 
how much is appropriated for individual programs.
               FUNCTION 370: COMMERCE AND HOUSING CREDIT

                              ----------                              


                            Function Summary

    This category has four components: mortgage credit (usually 
negative budget authority 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, and the like); and other advancement 
of commerce (most 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 Department of 
Commerce is provided for in this function including the 
International Trade Administration, Bureau of Economic 
Analysis, Patent and Trademark Office, 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, the Commodity Futures Trading Commission, 
the Federal Trade Commission, the Federal Communications 
Commission, and the majority of the Small Business 
Administration.
    More than two-thirds of the spending in Function 370 is 
from the Federal Communication Commission's Universal Service 
Fund. This fund collects receipts derived by certain 
telecommunications operators from charges on their consumers 
and customers to promote service to low-income users, e-rate 
for schools and libraries and high-cost areas, as well as new 
services.
    For the 5-year period ending in 2006, on-budget budget 
authority in this function increased an average of 11.9 percent 
per year, to $14.5 billion in 2006. In the same period, outlays 
rose 14.2 percent per year, to $7.9 billion. Off-budget budget 
authority in this function decreased an average of 183 percent 
per year, dropping to -$1.4 billion in 2006. In the same 
period, outlays declined 190 percent per year, to -$1.4 
billion.

                Summary of Committee-Reported Resolution

    For on-budget amounts, the resolution calls for $16.0 
billion in budget authority and $7.5 billion in outlays in 
fiscal year 2007, of which $16.5 billion in budget authority 
and $8.0 billion in outlays are on budget, and -$500 million in 
budget authority and -$500 million in outlays are off budget. 
The function totals are $60.0 billion in budget authority and 
$26.4 billion in outlays over 5 years, of which $71.9 billion 
in budget authority and $38.3 billion in outlays are on budget, 
and -$11.9 billion in budget authority and -$11.9 billion in 
outlays are off budget. Mandatory spending is $12.9 billion in 
budget authority and $4.0 billion in outlays in fiscal year 
2007, of which $13.4 billion in budget authority and 4.5 
billion in outlays is on budget, and -$500 million in budget 
authority and -$500 million in outlays are off budget. 
Mandatory spending over 5 years totals $42.1 billion in budget 
authority and $7.9 billion in outlays, of which $54.0 billion 
in budget authority and 19.8 billion in outlays are on budget, 
and -$11.9 billion in budget authority and -$11.9 billion in 
outlays are off budget Discretionary spending is $3.1 billion 
in budget authority and $3.5 billion in outlays in fiscal year 
2007, all of which is on budget. The resolution levels include 
the effects of enacted fiscal year 2006 supplementals. The 
levels also reflect the effects of the House-passed 
supplemental for fiscal year 2006.

                           MANDATORY SPENDING

    The spending levels for Commerce and Housing Credit 
(Function 370) are based on the Congressional Budget Office's 
revised baseline spending projections under current law and 
policies. These levels were adjusted to accommodate enactment 
of H.R. 3505, the Financial Services Regulatory Relief Act.
    The budget resolution also includes a reserve fund for 
enactment of H.R. 1461, the Federal Housing Finance Reform Act.

                         DISCRETIONARY SPENDING

    The Committee on Appropriations will determine how the 
overall level of discretionary funding is distributed across 
its 11 bills, and how much is appropriated for individual 
programs.
                      FUNCTION 400: TRANSPORTATION

                              ----------                              


                            Function Summary

    This category includes ground, air, water and other 
transportation funding. The major agencies and programs here 
include the Department of Transportation (including the Federal 
Aviation Administration; the Federal Highway Administration; 
the Federal Transit Administration; highway, motor carrier, 
rail and pipeline safety programs; and the Maritime 
Administration); the Department of Homeland Security (including 
the Federal Air Marshals, the Transportation Security 
Administration, and the U.S. Coast Guard); the aeronautical 
activities of the National Aeronautics and Space Administration 
[NASA]; and the National Railroad Passenger Corporation 
[Amtrak].
    For the 5 years ending in 2006, budget authority in this 
function increased at an average annual rate of 2.1 percent, 
from $67.4 billion to $74.9 billion. During the same time 
period, outlays rose from $54.4 billion to $70.9 billion, a 
5.4-percent average annual growth rate. The largest component 
of the totals is the budget of the Department of 
Transportation, whose budget authority grew from $61.6 billion 
in 2001 to $64.6 billion in 2006, a 1.0-percent average annual 
growth rate.

                Summary of Committee-Reported Resolution

    The resolution calls for $78.3 billion in budget authority 
and $75.8 billion in outlays in fiscal year 2007. The function 
totals are $378.8 billion in budget authority and $388.3 
billion in outlays over 5 years. Mandatory spending is $55.3 
billion in budget authority and $2.0 billion in outlays in 
fiscal year 2007, and totals $258.9 billion in budget authority 
and $11.2 billion in outlays over 5 years. Discretionary 
spending is $22.9 billion in budget authority and $73.8 billion 
in outlays in fiscal year 2007. The resolution levels include 
the effects of enacted fiscal year 2006 supplementals. The 
levels also reflect the effects of the House-passed 
supplemental for fiscal year 2006.
    The Committee on Transportation and Infrastructure has 
programs that spend out of the Highway Trust Fund, in which 
budget authority is defined as mandatory. The resulting 
outlays, however, are characterized as discretionary, and are 
scored against the Appropriations Committee. That committee 
constrains the outlays through appropriations act language 
known as ``obligation limitations.''

                           MANDATORY SPENDING

    The spending levels for Transportation (Function 400) are 
based on the Congressional Budget Office's revised baseline 
spending projections under current law and policies. The levels 
also reflect $50 million over 5 years in reconciled mandatory 
savings (see the reconciliation discussion in this report). The 
Committee on Transportation and Infrastructure will determine 
the policies that will achieve the required savings.

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office. The resolution does not 
specifically assume the President's proposed passenger rail 
funding levels or the President's proposed increases to 
aviation security fees. The Committee on Appropriations will 
determine how the overall level of discretionary funding is 
distributed across its 11 bills, and how much is appropriated 
for individual programs.
            FUNCTION 450: COMMUNITY AND REGIONAL DEVELOPMENT

                              ----------                              


                            Function Summary

    This category 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.
    Homeland Security spending in this function includes the 
State and local government grant programs of the Department of 
Homeland Security.
    For the 5 years ending in 2006, budget authority in this 
function increased at an average annual rate of 21.4 percent to 
$38.3 billion. Outlays rose at a rate of 38.5 percent per year, 
to $59.9 billion. A factor in this growth was Federal Emergency 
Management Agency [FEMA] funding for disaster relief in the 
aftermath of Hurricanes Katrina and Rita.

                Summary of Committee-Reported Resolution

    The resolution calls for $15.9 billion in budget authority 
and $31.3 billion in outlays in fiscal year 2007. The function 
totals are $68.0 billion in budget authority and $109.9 billion 
in outlays over 5 years. Mandatory spending is $2.9 billion in 
budget authority and $2.7 billion in outlays in fiscal year 
2007, and totals $2.3 billion in budget authority and $1.1 
billion in outlays over 5 years. Discretionary spending is 
$13.0 billion in budget authority and $28.7 billion in outlays 
in fiscal year 2007. The resolution levels include the effects 
of enacted fiscal year 2006 supplementals. The levels also 
reflect the effects of the House-passed supplemental for fiscal 
year 2006.

                           MANDATORY SPENDING

    The spending levels for Community and Regional Development 
(Function 450) are based on Congressional Budget Office's 
revised baseline spending projections under current law and 
policies. These levels were adjusted to accommodate $400 
million over 5 years in reconciled mandatory savings (see 
reconciliation). The Committee on Financial Services will 
determine the policies that will achieve the required savings. 
The levels for fiscal year 2006 have been adjusted to reflect 
enactment of increased borrowing authority for the National 
Flood Insurance Program (Public Law 109-208).
    The budget resolution also includes a reserve fund for 
increased borrowing authority for the National Flood Insurance 
Program to pay outstanding claims resulting from Hurricanes 
Katrina and Rita, in conjunction with enactment of various 
reforms to the program.

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office, with the following adjustment: 
the starting level was increased $1.3 billion, which could 
accommodate additional funding for Community Development Block 
Grants. The resolution does not assume the President's 
Strengthening America's Communities Initiative [SACI]. The 
Committee on Appropriations will determine how the overall 
level of discretionary funding is distributed across its 11 
bills, and how much is appropriated for individual programs.
   FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES

                              ----------                              


                            Function Summary

    This category primarily covers Federal spending within the 
Departments of Education, Labor, and Health and Human Services 
for programs that directly provide--or assist States and 
localities in providing--services to young people and adults. 
Its activities provide developmental services to low-income 
children; help fund programs for disadvantaged and other 
elementary and secondary school students; make grants and loans 
to post secondary students; and fund job-training and 
employment services for people of all ages.
    For the 5 years ending in 2006, budget authority in this 
function increased at an average annual rate of 12.1 percent, 
from $63.6 billion to $112.6 billion. During the same time 
period, outlays rose from $57.1 billion to $106.4 billion, at a 
13.3-percent average annual growth rate.

                Summary of Committee-Reported Resolution

    The resolution calls for $84.8 billion in budget authority 
and $87.5 billion in outlays in fiscal year 2007. The function 
totals are $419.7 billion in budget authority and $421.3 
billion in outlays over 5 years. Mandatory spending is $10.2 
billion in budget authority and $9.4 billion in outlays in 
fiscal year 2007, and totals $53.3 billion in budget authority 
and $47.9 billion in outlays over 5 years. Discretionary 
spending is $74.7 billion in budget authority and $78.1 billion 
in outlays in fiscal year 2007. The resolution levels include 
the effects of enacted fiscal year 2006 supplementals. The 
levels also reflect the effects of the House-passed 
supplemental for fiscal year 2006.

                           MANDATORY SPENDING

    The spending levels for Education, Training, Employment, 
and Social Services (Function 500) are based on the 
Congressional Budget Office's revised baseline spending 
projections under current law and policies.
    Although the committee strongly supports the Federal 
student loan programs, members remain concerned that the 
baselines for student loans may not provide a sufficiently 
accurate indication of true economic costs. This concern was 
validated by the publication of reports last year by two 
different congressional support agencies. Both of the reports--
one published by the Congressional Budget Office and the other 
by the Government Accountability Office--found the subsidy cost 
estimates calculated under the Credit Reform Act do not fully 
capture all governmental costs associated with the Direct Loan 
program.
    The Budget Committee is committed to working with both the 
Committee on Education and the Workforce and the Congressional 
Budget Office to identify additional cost factors that could be 
incorporated into future baselines and subsidy estimates. 
Through the use of studies and other analyses, the committee 
looks forward to identifying and evaluating other quantifiable 
factors that might significantly contribute to the certainty 
and accuracy of student loan estimates.

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office. The resolution does not 
specifically assume the President's proposed funding levels for 
the Individuals with Disabilities Education Act [IDEA] program. 
The Committee on Appropriations will determine how the overall 
level of discretionary funding is distributed across its 11 
bills, and how much is appropriated for individual programs.
                          FUNCTION 550: HEALTH

                              ----------                              


                            Function Summary

    This function consists of health care services, including 
Medicaid, the Nation's major program covering medical and long-
term care costs for low-income persons; the State Children's 
Health Insurance Program [SCHIP], health research and training, 
including the National Institutes of Health [NIH] and substance 
abuse prevention and treatment; and consumer and occupational 
health and safety, including the Occupational Safety and Health 
Administration. Medicaid represents 71 percent of the spending 
in this function.
    Homeland security spending in this function includes 
funding for Project Bioshield; the NIH, including the National 
Institute of Allergy and Infectious Diseases; the Food Safety 
and Inspection Service; and the Food and Drug Administration.
    For the 5 years ending in 2006, budget authority in this 
function rose an average annual rate of 8.0 percent per year, 
to $267.4 billion. During the same period, outlays rose from 
$172.3 billion to $264.4 billion, a 9.0-percent average annual 
growth rate. The largest component of this growth was Medicaid, 
whose Federal payments grew an average of 8.4 percent per year, 
to $189.8 billion.

                Summary of Committee-Reported Resolution

    The resolution calls for $275.8 billion in budget authority 
and $274.3 billion in outlays in fiscal year 2007. The function 
totals are $1,551.3 billion in budget authority and $1,547.6 
billion in outlays over 5 years. Mandatory spending is $222.8 
billion in budget authority and $221.2 billion in outlays in 
fiscal year 2007, and totals $1,297.2 billion in budget 
authority and $1,290.8 billion in outlays over 5 years. 
Discretionary spending is $53.0 billion in budget authority and 
$53.1 billion in outlays in fiscal year 2007. The resolution 
levels include the effects of enacted fiscal year 2006 
supplementals.

                           MANDATORY SPENDING

    The spending levels for Health (Function 550) are based on 
the Congressional Budget Office's revised baseline spending 
projections under current law and policies. The committee with 
jurisdiction over programs in this function is the Committee on 
Energy and Commerce. The resolution does not assume any 
reductions in Medicaid.

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office. The Committee on 
Appropriations will determine how the overall level of 
discretionary funding is distributed across its 11 bills, and 
how much is appropriated for individual programs. The budget 
resolution also includes a special exemption from Congressional 
budget controls, capped at $2.3 billion in fiscal year 2007, 
for emergency spending measures to combat avian influenza.
                         FUNCTION 570: MEDICARE

                              ----------                              


                            Function Summary

    This budget function reflects the Medicare Part A Hospital 
Insurance [HI] Program, Part B Supplementary Medical Insurance 
[SMI] Program, Part C Medicare Advantage Program, and Part D 
Prescription Drug Benefit, as well as premiums paid by 
qualified aged and disabled beneficiaries. On 8 December 2003, 
Congress and the President enacted the Medicare Prescription 
Drug, Improvement, and Modernization Act [MMA]. MMA changed 
Medicare Part C from the Medicare+Choice Program to the 
Medicare Advantage Program and added the Part D Prescription 
Drug Benefit to the Medicare Program.
    For the 5 years ending in 2006, budget authority in this 
function increased at an average annual rate of 9.2 percent, to 
$336.9 billion. During the same time period, outlays rose from 
$217.4 billion to $331.5 billion, a 8.8-percent average annual 
growth rate. This function consists entirely of the Medicare 
program.

                Summary of Committee-Reported Resolution

    The resolution calls for $382.8 billion in budget authority 
and $388.3 billion in outlays in fiscal year 2007. The function 
totals are $2,235.7 billion in budget authority and $2,241.3 
billion in outlays over 5 years. Mandatory spending is $377.8 
billion in budget authority and $383.4 billion in outlays in 
fiscal year 2007, and totals $2,211.4 billion in budget 
authority and $2,217.0 billion in outlays over 5 years. 
Discretionary spending is $5.0 billion in budget authority and 
$4.9 billion in outlays in fiscal year 2007. The resolution 
levels include the effects of enacted fiscal year 2006 
supplementals.

                           MANDATORY SPENDING

    The spending levels for Medicare (Function 570) are based 
on the Congressional Budget Office's revised baseline spending 
projections under current law and policies. The resolution does 
not assume any reductions in Medicare. Committees with 
jurisdiction over programs in this function are the Committees 
on Energy and Commerce and Ways and Means.

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office. The Committee on 
Appropriations will determine how the overall level of 
discretionary funding is distributed across its 11 bills, and 
how much is appropriated for individual programs.
                     FUNCTION 600: INCOME SECURITY

                              ----------                              


                            Function Summary

    This category 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).
    For the 5 years ending in 2006, budget authority in this 
function increased at an average annual rate of 4.8 percent, to 
$346.4 billion. Outlays rose an average of 5.8 percent per year 
in the same period, to $356.9 billion in 2006.

                Summary of Committee-Reported Resolution

    The resolution calls for $356.8 billion in budget authority 
and $362.1 billion in outlays in fiscal year 2007. The function 
totals are $1,908.0 billion in budget authority and $1,920.8 
billion in outlays over 5 years. Mandatory spending is $309.1 
billion in budget authority and $307.2 billion in outlays in 
fiscal year 2007, and totals $1,669.5 billion in budget 
authority and $1,657.3 billion in outlays over 5 years. 
Discretionary spending is $47.7 billion in budget authority and 
$54.9 billion in outlays in fiscal year 2007. The resolution 
levels include the effects of enacted fiscal year 2006 
supplementals.

                           MANDATORY SPENDING

    The spending levels for Income Security (Function 600) are 
based on the Congressional Budget Office's revised baseline 
spending projections under current law and policies. The levels 
for fiscal year 2006 are modified to reflect the enactment of 
Public Law 109-176, emergency unemployment compensation related 
to Hurricane Katrina. The fiscal year 2007 levels are adjusted 
to accommodate legislation to strengthen the Nation's private 
pension system through the Pension Benefit Guaranty 
Corporation. The levels also reflect $2.1 billion over 5 years 
in reconciled mandatory savings (see the reconciliation 
discussion in this report). Committees with jurisdiction will 
determine the policies that will achieve the required savings.

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office, adjusted to reflect enactment 
of Public Law 109-204, which shifts funding provided in the 
Deficit Reduction Act of 2005 for the Low Income Home Energy 
Assistance Program [LIHEAP] from fiscal year 2007. In addition, 
the starting level in this function was reduced by $100 million 
to accommodate increased funding for community and regional 
development programs in Community and Regional Development 
(Function 450). The Committee on Appropriations will determine 
how the overall level of discretionary funding is distributed 
across its 11 bills, and how much is appropriated for 
individual programs.
                     FUNCTION 650: SOCIAL SECURITY

                              ----------                              


                            Function Summary

    This category consists of the Social Security Program, or 
Old Age, Survivors, and Disability Insurance [OASDI]. It is the 
largest budget function in terms of outlays, and provides funds 
for the Government's largest entitlement program. Under 
provisions of the Congressional Budget Act and the Budget 
Enforcement Act, Social Security trust funds are considered to 
be off-budget. But a small portion of spending within Function 
650--including general fund transfers of taxes paid on Social 
Security benefits--is on-budget. Therefore, although the 
discussion below describes both the on-budget and off-budget 
components, the budget resolution itself contains only the on-
budget portion.
    For the 5 years ending in 2006, on-budget budget authority 
rose from $14 billion in 2002 to $14.8 billion in 2006; the 
average annual growth for the 5-year period 2002-06 is 4.8 
percent. During the same period, outlays rose from $14 billion 
to $14.8 billion, a 4.8-percent average annual growth rate.
    For off-budget spending during the 5 years ending in 2006, 
budget authority rose from $448 billion in 2002 to $542.1 
billion in 2006; the average annual growth for the 5-year 
period ending in 2006 is 4.8 percent. During the same period, 
outlays rose from $442 billion to $539.8 billion, a 5.1-percent 
average annual growth rate.

                Summary of Committee-Reported Resolution

    For on-budget spending, the resolution calls for $16.9 
billion in budget authority and $16.9 billion in outlays in 
fiscal year 2007. The function totals are $105.8 billion in 
budget authority and $105.8 billion in outlays over 5 years. 
Mandatory spending is $16.9 billion in budget authority and 
$16.9 billion in outlays in fiscal year 2007, and totals $105.8 
billion in budget authority and $105.8 billion in outlays over 
5 years. There is no on-budget discretionary spending in this 
function.
    For off-budget spending, the resolution calls for $568.6 
billion in budget authority and $566.4 billion in outlays in 
fiscal year 2007. The function totals are $3,139.9 billion in 
budget authority and $3,125.8 billion in outlays over 5 years. 
Mandatory spending is $563.8 billion in budget authority and 
$561.6 billion in outlays in fiscal year 2007, and totals 
$3,116.6 billion in budget authority and $3,102.5 billion in 
outlays over 5 years. Discretionary spending is $4.8 billion in 
budget authority and $4.8 billion in outlays in fiscal year 
2007, and totals $23.3 billion in budget authority and $23.3 
billion in outlays over 5 years.

                           MANDATORY SPENDING

    The mandatory level for Social Security (Function 650) are 
based on the Congressional Budget Office's revised baseline 
spending projections under current law and policies.

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office. The Committee on 
Appropriations will determine how the overall level of 
discretionary funding is distributed across its 11 bills, and 
how much is appropriated for individual programs.
              FUNCTION 700: VETERANS BENEFITS AND SERVICES

                              ----------                              


                            Function Summary

    This category 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 approximately 24 million veterans.
    For the 5 years ending in 2006, budget authority in this 
function increased at an average annual rate of 8.6 percent to 
$72 billion. Outlays in the same period rose 9.3 percent per 
year, to $70.1 billion in 2006.

                Summary of Committee-Reported Resolution

    The resolution calls for $74.6 billion in budget authority 
and $73.9 billion in outlays in fiscal year 2007. The function 
totals are $390 billion in budget authority and $389.6 billion 
in outlays over 5 years. Mandatory spending is $37.8 billion in 
budget authority and $37.7 billion in outlays in fiscal year 
2007, and totals $214.4 billion in budget authority and $214.2 
billion in outlays over 5 years. Discretionary spending is 
$36.9 billion in budget authority and $36.3 billion in outlays 
in fiscal year 2007. The resolution levels include the effects 
of enacted fiscal year 2006 supplementals. The levels also 
reflect the effects of the House-passed supplemental for fiscal 
year 2006. The resolution assumes no reduction to VA medical 
care.

                           MANDATORY SPENDING

    The spending levels for Veterans Benefits and Services 
(Function 700) are based on the Congressional Budget Office's 
revised baseline spending projections under current law and 
policies.

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office, with the following adjustment: 
during markup, the Committee on the Budget adopted an amendment 
by Mr. Bradley increasing budget authority over the President's 
level by $795 million for fiscal year 2007 and $3.975 billion 
over 2007-11; and decreasing International Affairs (Function 
150) by a like amount. The level does not assume the 
President's proposal to implement enrollment fees and increase 
drug co-pays for Priority 7 and 8 veterans. The Committee on 
Appropriations will determine how the overall level of 
discretionary funding is distributed across its 11 bills, and 
how much is appropriated for individual programs.
                FUNCTION 750: ADMINISTRATION OF JUSTICE

                              ----------                              


                            Function Summary

    This category supports the majority of Federal justice and 
law enforcement programs and activities. This includes funding 
for the Department of Justice; the financial law enforcement 
activities of the Department of the Treasury; Federal courts 
and prisons; and criminal justice assistance to State and local 
governments. Homeland security spending in this function 
includes funding for the law enforcement and border protection 
activities of the Department of Homeland Security, and the 
counterterrorism activities of the Departments of Justice and 
Treasury.
    For the 5 years ending in 2006, budget authority in this 
function rose an average of 5 percent per year, to $40.7 
billion. Outlays rose to $40.8 billion in the same period, an 
average of 6.2 percent per year.

                Summary of Committee-Reported Resolution

    The resolution calls for $42.8 billion in budget authority 
and $43.6 billion in outlays in fiscal year 2007. The function 
totals are $217.8 billion in budget authority and $219.3 
billion in outlays over 5 years. Mandatory spending is $2.1 
billion in budget authority and $1.3 billion in outlays in 
fiscal year 2007, and totals $4.1 billion in budget authority 
and $3.9 billion in outlays over 5 years. Discretionary 
spending is $40.7 billion in budget authority and $42.4 billion 
in outlays in fiscal year 2007. The resolution levels include 
the effects of enacted the enacted fiscal year 2006 
supplementals. The levels also reflect the effects of the 
House-passed supplemental for fiscal year 2006.

                           MANDATORY SPENDING

    The mandatory levels for Administration of Justice 
(Function 750) are based on the Congressional Budget Office's 
baseline spending projections under current law and policies. 
These levels were adjusted to accommodate legislation that 
reorganizes the Ninth Circuit and creates additional 
judgeships, and a cost of living adjustment for Federal judges, 
which are also reflected in the Judiciary Committee's 302(a) 
allocations. The resolution also assumes reconciliation savings 
for the Committee on the Judiciary, which are reflected in 
Allowances (Function 920).

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office, with an adjustment to provide 
$900 million for Byrne Justice Assistance Grants. The Committee 
on Appropriations will determine how the overall level of 
discretionary funding is distributed across its 11 bills, and 
how much is appropriated for individual programs.
                    FUNCTION 800: GENERAL GOVERNMENT

                              ----------                              


                            Function Summary

    General Government consists of the activities of the 
Legislative Branch; the Executive Office of the President; 
general tax collection and fiscal operations of the Department 
of Treasury (including the Internal Revenue Service); the 
Office of Personnel Management, and the property and personnel 
costs of the General Services Administration; general purpose 
fiscal assistance to States, localities, the District of 
Columbia, and U.S. territories; and other general Government 
activities.
    For the 5-year period ending in 2006, General Government 
budget authority increased at an annual average rate of 0.9 
percent, from $17.9 billion to $18.7 billion. During the same 
time period, outlays rose from $16.9 billion to $18.9 billion, 
a 2.3-percent average annual growth rate.

                Summary of Committee-Reported Resolution

    The resolution calls for $19.0 billion in budget authority 
and $18.9 billion in outlays in fiscal year 2007. The function 
totals are $92.4 billion in budget authority and $91.5 billion 
in outlays over 5 years. Mandatory spending is $2.2 billion in 
budget authority and $2.2 billion in outlays in fiscal year 
2007, and totals $10.5 billion in budget authority and $10.5 
billion in outlays over 5 years. Discretionary spending is 
$16.8 billion in budget authority and $16.7 billion in outlays 
in fiscal year 2007. The resolution levels include the effects 
of enacted fiscal year 2006 supplementals. The levels also 
reflect the effects of the House-passed supplemental for fiscal 
year 2006.

                           MANDATORY SPENDING

    The spending levels for General Government (Function 800) 
are based on the Congressional Budget Office's revised baseline 
spending projections under current law and policies, adjusted 
for non-reconciled mandatory policies. These levels were 
adjusted to accommodate legislation to allow time spent at 
service academies to be considered creditable under the Civil 
Service Retirement System and the Federal Employee Retirement 
System, which are also reflected in the Committee's 302(a) 
allocations (see 302(a) allocations). It also reflects $25 
million over 5 years in reconciled mandatory savings (see the 
reconciliation discussion in this report). The committee with 
jurisdiction over the reconciled savings will determine the 
policies to achieve the required savings.
    The budget resolution also includes reserve funds for the 
disposal of underutilized Federal real property and the 
reauthorization of the Secure Rural Schools and Community Self-
Determination Act (Public Law 106-393).

                         DISCRETIONARY SPENDING

    The discretionary level in this function for fiscal year 
2007 is the President's recommended level, as re-estimated by 
the Congressional Budget Office. The Committee on 
Appropriations will determine how the overall level of 
discretionary funding is distributed across its 11 bills, and 
how much is appropriated for individual programs.
                       Function 900: Net Interest

                              ----------                              


                            Function Summary

    The category includes net interest, which 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. It is a mandatory payment, with no 
discretionary components.
    For the 2001-06 period, budget authority and outlays 
increased by an average of 1.1 percent a year, to $218.2 
billion in fiscal year 2006.

                Summary of Committee-Reported Resolution

    The resolution calls for $247.1 billion in budget authority 
and outlays in fiscal year 2007. The function totals are 
$1,377.2 billion in budget authority and outlays over 5 years. 
On-budget spending is $354.1 billion in budget authority and 
outlays in fiscal year 2007, and totals $2,019.8 billion in 
budget authority and outlays over 5 years. Off-budget spending 
is -$107.0 billion in budget authority and outlays in fiscal 
year 2007; and over 5 years, it is -$642.6 billion in budget 
authority and outlays.

                           MANDATORY SPENDING

    There are no specific mandatory assumptions in this 
function.
                        Function 920: ALLOWANCES

                              ----------                              


                            Function Summary

    This category 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.

                Summary of Committee-Reported Resolution

    The function totals are $4.1 billion in budget authority 
and $3.4 billion in outlays for fiscal year 2007; and -$26.0 
billion in budget authority and -$22.3 billion in outlays for 
2007-11.

                           MANDATORY SPENDING

    The resolution calls for -$0.2 billion in mandatory budget 
authority and outlays for fiscal year 2007; and -$3.7 billion 
in budget authority and outlays for 2007-11. It reflects 
reconciled mandatory savings that were not distributed among 
the budget functions.

                         DISCRETIONARY SPENDING

    The resolution calls for $4.3 billion in discretionary 
budget authority and $3.7 billion in outlays for fiscal year 
2007; and -$22.3 billion in budget authority and -$18.7 billion 
in outlays for 2007-11. It includes $4.4 billion in budget 
authority in an emergency reserve for 2007 to anticipate a 
response to natural disaster. The $4.4-billion figure is the 
median of emergency spending during the past 10 years for 
accounts typically associated with spending in response to 
natural disasters.
            FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS

                              ----------                              


                            Function Summary

    This function consists of receipts to the Treasury. 
Receipts recorded in this function are either intrabudgetary (a 
payment from one Federal agency to another, such as agency 
payments to the retirement trust funds) or proprietary (a 
payment from the public for some kind of business transaction 
with the government). The main types of receipts recorded in 
this function are: the payments Federal employees and agencies 
make to employee retirement trust funds; payments made by 
companies for the right to explore and produce oil and gas on 
the Outer Continental Shelf, and payments by those who bid for 
the right to buy or use public property or resources, such as 
the electromagnetic spectrum. These receipts are treated as 
negative spending.
    Because increases in on-budget receipts appear as negative 
spending, for the 5 years ending in 2006, budget authority in 
this function decreased at an annual average rate of 7.8 
percent, to $68.54 billion. During the same time period, 
outlays rose in 2006, indicating an increase in receipts. 
Similarly, the increasing receipts are reflected as a decline 
in outlays in the same period by an average of 7.8 percent per 
year, to $68.54 billion. Off-budget receipts have increased an 
average of 7.6 percent per year, reaching $11.4 billion in 2006 
(as reflected in negative spending).

                Summary of Committee-Reported Resolution

    The resolution calls for -$80.80 billion in budget 
authority and -$81.64 billion in outlays in fiscal year 2007 
(with the minus signs again indicating receipts into the 
Treasury.) The function totals are -$417.41 billion in budget 
authority and -$417.42 billion in outlays over 5 years. The 
resolution levels include the effects of fiscal year 2006 
supplementals. The levels also reflect the effects of the 
House-passed supplementals for fiscal year 2006.

                           MANDATORY SPENDING

    The committees with jurisdiction over programs in this 
function are Energy and Commerce, Resources and Government 
Reform. The receipts levels for Undistributed Offsetting 
Receipts (Function 950) are based on the Congressional Budget 
Office's revised baseline spending projections under current 
law and policies.

                       Summary and Revenue Tables

    The tables in this section provide information about the 
levels assumed for revenues, the budgetary aggregates and 
functional distribution. For spending, these levels are shown 
for both budget authority and outlays. The tables also provide 
comparisons of the levels and budgetary aggregates both with 
the budget request submitted by the President and with the 
current year to facilitate analysis of the resolution against 
common benchmarks for federal revenues and spending.
          Table 3: Comparison of Total Revenues for President's 
        Request and Committee Recommendation
          Table 4: Comparison of On-Budget Revenues for 
        President's Request and Committee Recommendation
          Table 5: Tax Expenditure Estimates by Budget 
        Function, Fiscal Years 2006-2010
          Table 6: Fiscal Year 2007 Budget Resolution Total 
        Spending and Revenues
          Table 7: Fiscal Year 2007 Budget Resolution 
        Discretionary Spending
          Table 8: Fiscal Year 2007 Budget Resolution Mandatory 
        Spending
          Table 9: Fiscal Year 2007 Budget Resolution Minus the 
        President's Request
          Table 10: Fiscal Year 2007 Budget Resolution Compared 
        to 2006: Total Spending and Revenues
          Table 11: Fiscal Year 2007 Budget Resolution Compared 
        to 2006: Total Spending and Revenues (Percentage 
        Change)

   TABLE 3.--COMPARISON OF TOTAL REVENUES FOR PRESIDENT'S REQUEST AND
                        COMMITTEE RECOMMENDATION
                        [In billions of dollars]
------------------------------------------------------------------------
                                                                 Amount
------------------------------------------------------------------------
Fiscal Year 2006:
    President's Request (February 2006)......................    2,304.0
    Committee Level..........................................    2,303.1
Fiscal Year 2007:
    President's Request (February 2006)......................    2,431.2
    Committee Level..........................................    2,422.4
Fiscal Year 2008:
    President's Request (February 2006)......................    2,584.6
    Committee Level..........................................    2,590.0
Fiscal Year 2009:
    President's Request (February 2006)......................    2,712.1
    Committee Level..........................................    2,722.7
Fiscal Year 2010:
    President's Request (February 2006)......................    2,851.8
    Committee Level..........................................    2,869.0
Fiscal Year 2011:
    President's Request (February 2006)......................    2,963.7
    Committee Level..........................................    2,993.5
------------------------------------------------------------------------
Note: President's Request is CBO estimate.


 TABLE 4.--COMPARISON OF ON BUDGET REVENUES FOR PRESIDENT'S REQUEST AND
                        COMMITTEE RECOMMENDATION
                        [In billions of dollars]
------------------------------------------------------------------------
                                                                 Amount
------------------------------------------------------------------------
Fiscal Year 2006:
    President's Request (February 2006)......................    1,695.6
    Committee Level..........................................    1,694.7
Fiscal Year 2007:
    President's Request (February 2006)......................    1,789.4
    Committee Level..........................................    1,780.7
Fiscal Year 2008:
    President's Request (February 2006)......................    1,908.2
    Committee Level..........................................    1,913.6
Fiscal Year 2009:
    President's Request (February 2006)......................    2,000.4
    Committee Level..........................................    2,011.2
Fiscal Year 2010:
    President's Request (February 2006)......................    2,104.5
    Committee Level..........................................    2,122.2
Fiscal Year 2011:
    President's Request (February 2006)......................    2,181.7
    Committee Level..........................................    2,212.3
------------------------------------------------------------------------
Note: President's Request is CBO estimate.


                                     TABLE 5.--TAX EXPENDITURE ESTIMATES BY BUDGET FUNCTION, FISCAL YEARS 2006-2010
                                                                  [Billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Corporations                                 Individuals
                      Function                      ------------------------------------------------------------------------------------------   Total
                                                       2006     2007     2008     2009     2010     2006     2007     2008     2009     2010    2006-10
--------------------------------------------------------------------------------------------------------------------------------------------------------
National Defense
  Exclusion of benefits and allowances to Armed      .......  .......  .......  .......  .......      2.8      2.8      2.9      3.0      3.0       14.5
   Forces personnel................................
  Exclusion of military disability benefits........  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1        0.4
  Deduction for overnight-travel expenses of         .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1        0.3
   National Guard and Reserve Members..............
International Affairs
  Exclusion of income earned abroad by U.S.          .......  .......  .......  .......  .......      3.8      4.0      4.2      4.4      4.6       21.0
   citizens........................................
  Exclusion of certain allowances for Federal        .......  .......  .......  .......  .......      0.6      0.6      0.7      0.7      0.8        3.4
   employees abroad................................
  Exclusion of extraterritorial income.............      3.9      1.9      0.1      0.1      0.1      0.1    (\1\)    (\1\)    (\1\)    (\1\)        6.2
  Deferral of active income of controlled foreign        3.4      5.8      6.4      7.0      7.5  .......  .......  .......  .......  .......       30.1
   corporations....................................
  Inventory property sales source rule exception...      6.2      6.4      6.6      6.8      7.0  .......  .......  .......  .......  .......       33.0
  Deferral of certain active financing income......      1.1      1.7  .......  .......  .......  .......  .......  .......  .......  .......        2.8
General Science, Space, and Technology
  Expensing of research and experimental                 2.0      3.7      5.5      6.0      5.8    (\1\)      0.1      0.1      0.1      0.1       29.4
   expenditures....................................
Energy
  Expensing of exploration and development costs:
    Oil and gas....................................      1.1      1.6      1.2      0.8      0.6    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        5.4
    Other fuels....................................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.2
  Excess of percentage over cost depletion:
    Oil and gas....................................      1.0      1.0      0.9      0.9      0.9    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        4.7
    Other fuels....................................      0.1      0.1      0.1      0.1      0.1    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.6
  Incentives for small refiners to comply with EPA     (\1\)    (\1\)    (\1\)    (\1\)    (\1\)  .......  .......  .......  .......  .......        0.1
   sulfur regulations..............................
  Tax credit for production of non-conventional          2.7      3.2      1.2    (\1\)    (\1\)      1.0      1.0      0.2    (\1\)    (\1\)        8.8
   fuels...........................................
  Tax credits for alcohol fuels\2\.................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)  .......  .......  .......  .......  .......        0.2
  Tax credits for biodiesel fuels..................    (\1\)      0.1      0.1    (\1\)  .......  .......  .......  .......  .......  .......        0.2
  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 qualified private activity bonds for
   energy production facilities....................
  Exclusion of energy conservation subsidies         .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
   provided by public utilities....................
  Energy credit (Section 48).......................    (\1\)      0.1    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.2
  Tax credit for electricity production from             2.0      3.7      5.5      6.0      5.8      0.1      0.1      0.1      0.1      0.1       29.4
   renewable resources.............................
  Deferral of gain from the disposition of electric      0.6      0.5    (\3\)     -0.3     -0.3  .......  .......  .......  .......  .......        0.4
   transmission property to implement Federal
   Energy Regulatory Commission restructuring
   policy..........................................
  Tax credit for holders of clean renewable energy     (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.2
   bonds...........................................
  Tax credit for production of electricity from      .......  .......  .......  .......  .......  .......  .......  .......  .......  .......        0.0
   qualifying advanced nuclear power facilities....
  Tax credits for investments in clean coal power      (\1\)      0.1      0.1      0.2      0.2  .......  .......  .......  .......  .......        0.5
   generation facilities...........................
  Expensing of the cost of property used in the        (\1\)    (\1\)      0.1      0.2      0.3  .......  .......  .......  .......  .......        0.7
   refining of liquid fuels........................
  Amortization of geological and geophysical costs     (\3\)      0.1      0.2      0.2      0.1    (\3\)    (\1\)      0.1      0.1    (\1\)        0.8
   associated with oil and gas exploration.........
  Deduction for expenditures on energy-efficient       (\1\)      0.1    (\1\)    (\3\)    (\3\)    (\1\)      0.1    (\1\)    (\3\)    (\3\)        0.3
   commercial building property....................
  Tax credit for the purchase of qualified energy    .......  .......  .......  .......  .......      0.1      0.3      0.2  .......  .......        0.6
   efficiency improvements to existing homes.......
  Tax credit for the production of energy-efficient      0.1      0.1  .......  .......  .......  .......  .......  .......  .......  .......        0.2
   appliances......................................
  Tax credit for the residential purchase/               0.1      0.1    (\1\)    (\1\)    (\1\)      0.2      0.2      0.1      0.1    (\1\)        0.8
   installation of qualified Tax credits for
   alternative technology vehicles.................
  Tax credit for clean-fuel vehicle refueling          (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
   property........................................
  Five-year carryback period for certain net             0.1    (\1\)    (\1\)    (\3\)    (\3\)  .......  .......  .......  .......  .......        0.1
   operating losses of electric utility companies..
Natural Resources and Environment
  Expensing of exploration and development costs,        0.1      0.1      0.1      0.1      0.1    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.4
   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        1.0
   minerals........................................
  Expensing of timber-growing costs................      0.2      0.2      0.2      0.2      0.2    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        1.1
  Exclusion of interest on State and local               0.2      0.2      0.2      0.2      0.2      0.4      0.4      0.5      0.5      0.5        3.3
   government qualified private activity bonds for
   sewage, water, and hazardous waste facilities...
  Special rules for mining reclamation reserves....    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.2
  Special tax rate for nuclear decommissioning           0.5      0.6      0.7      0.8      0.8  .......  .......  .......  .......  .......        3.4
   reserve funds...................................
  Exclusion of contributions in aid of construction    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)  .......  .......  .......  .......  .......        0.2
   for water and sewer utilities...................
  Amortization of certified pollution control          (\1\)    (\1\)      0.1      0.1      0.1  .......  .......  .......  .......  .......        0.3
   facilities......................................
  Amortization of reforestation expenditures.......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.1      0.1      0.1      0.1      0.1        0.6
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         (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.2      0.1      0.1      0.1      0.1        0.7
   costs...........................................
  Expensing of the costs of raising dairy and          (\1\)    (\1\)    (\3\)    (\3\)    (\1\)      0.1    (\1\)    (\3\)    (\3\)    (\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..................     -0.1    (\1\)    (\1\)    (\1\)    (\1\)     -0.8      0.3      0.2    (\1\)    (\1\)       -0.3
  Income averaging for farmers and fishermen.......  .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
  Five-year carryback period for net operating         (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
   losses attributable to farming..................
Commerce and Housing
  Financial institutions:
    Exemption of credit union income...............      1.7      1.8      1.9      2.0      2.1  .......  .......  .......  .......  .......        9.3
  Insurance companies:
    Exclusion of investment income on life               2.5      2.5      2.6      2.7      2.7     25.5     26.1     26.8     27.5     28.2      147.1
     insurance and annuity contracts...............
    Small life insurance company taxable income          0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......        0.3
     adjustment....................................
    Special treatment of life insurance company          1.9      2.0      2.0      2.1      2.2  .......  .......  .......  .......  .......       10.2
     reserves......................................
    Deduction of unpaid property loss reserves for       3.4      3.4      3.5      3.6      3.6  .......  .......  .......  .......  .......       17.5
     property and casualty insurance companies.....
  Special deduction for Blue Cross and Blue Shield       0.9      1.0      1.0      1.0      1.0  .......  .......  .......  .......  .......        5.0
   companies.......................................
  Housing:
    Deduction for mortgage interest on owner-        .......  .......  .......  .......  .......     69.4     75.6     80.7     85.9     91.1      402.7
     occupied residences...........................
    Deduction for property taxes on owner-occupied   .......  .......  .......  .......  .......     19.9     13.8     13.5     13.4     13.2       73.8
     residences....................................
    Exclusion of capital gains on sales of           .......  .......  .......  .......  .......     24.1     25.2     25.7     26.3     27.1      128.4
     principal residences..........................
    Exclusion of interest on State and local             0.3      0.4      0.4      0.4      0.4      0.9      1.0      1.0      1.1      1.1        7.0
     government qualified private activity bonds
     for owner-occupied housing....................
    Exclusion of interest on State and local             0.2      0.2      0.2      0.2      0.2      0.5      0.5      0.5      0.6      0.6        3.7
     government qualified private activity bonds
     for rental housing............................
    Depreciation of rental housing in excess of          0.4      0.5      0.6      0.7      0.8      4.0      4.6      5.3      6.1      7.0       29.9
     alternative depreciation system...............
    Tax credit for low-income housing..............      3.4      3.6      3.8      4.1      4.4      1.4      1.5      1.6      1.7      1.9       27.4
    Tax credit for rehabilitation of historic            0.3      0.3      0.3      0.3      0.3      0.1      0.1      0.1      0.1      0.1        2.2
     structures....................................
    Tax credit for rehabilitation of structures,       (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.1      0.1      0.1      0.1      0.1        0.5
     other than historic structures................
    Additional exemption for housing provided to     .......  .......  .......  .......  .......      0.1    (\1\)  .......  .......  .......        0.1
     individuals displaced by Hurricane Katrina....
    Tax credit for Gulf Opportunity Zone employers       0.1    (\1\)  .......  .......  .......      0.1    (\1\)  .......  .......  .......        0.2
     providing in-kind lodging for employees and
     income exclusion for the employees............
  Other business and commerce:
    Reduced rates of tax on dividends and long-term  .......  .......  .......  .......  .......     92.2     94.5    101.7     99.6     50.2      438.1
     capital gains.................................
    Exclusion of capital gains at death............  .......  .......  .......  .......  .......     50.9     51.9     53.2     69.7     64.5      290.2
    Carryover basis of capital gains on gifts......  .......  .......  .......  .......  .......      5.4      5.5      5.7      7.6     56.1       80.3
    Deferral of gain on non-dealer installment           0.6      0.7      0.7      0.7      0.8      0.5      0.5      0.5      0.6      0.6        6.2
     sales.........................................
    Deferral of gain on like-kind exchanges........      2.0      2.1      2.2      2.4      2.5      0.8      0.8      0.9      0.8      1.0       15.5
    Depreciation of buildings other than rental          0.4      0.6      0.8      1.1      1.4      0.4      0.5      0.7      1.0      1.3        8.3
     housing in excess of alternative depreciation
     system........................................
    Depreciation of equipment in excess of the           5.7     11.0     17.7     23.4     27.7     -2.2      0.1      2.2      4.3      6.1       96.0
     alternative depreciation system...............
    Expensing under section 179 of depreciable           0.6      0.6     -0.1     -0.4     -0.2      2.8      2.6      0.1     -0.8     -0.4        4.8
     business property.............................
    Amortization of business startup costs.........    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.7      0.7      0.8      0.8      0.9        3.9
    Reduced rates on first $10,000,000 of corporate      4.3      4.3      4.3      4.3      4.3  .......  .......  .......  .......  .......       21.6
     taxable income................................
    Permanent exemption from imputed interest rules    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.4      0.4      0.4      0.4      0.5        2.1
    Expensing of magazine circulation expenditures.    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
    Special rules for magazine, paperback book, and    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.2
     record returns................................
    Completed contract rules.......................      0.3      0.3      0.4      0.4      0.5    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        1.9
    Cash accounting, other than agriculture........    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.8      0.8      0.8      0.9      0.9        4.2
    Exclusion of interest on State and local             0.1      0.1      0.1      0.1      0.1      0.3      0.3      0.3      0.4      0.4        2.3
     government small-issue qualified private
     activity bonds................................
    Exception from net operating loss limitations        0.6      0.6      0.6      0.6      0.6  .......  .......  .......  .......  .......        3.0
     for corporations in bankruptcy proceedings....
    Tax credit for employer-paid FICA taxes on tips      0.2      0.2      0.2      0.2      0.3      0.3      0.4      0.4      0.4      0.5        3.1
    Deduction of certain film and television             0.1      0.1      0.1    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.3
     production costs..............................
    Production activity deduction..................      2.7      3.9      5.5      5.9      7.4      0.9      1.3      1.8      2.0      2.6       34.0
    Exclusion of income from discharge of              (\1\)    (\1\)    (\1\)    (\1\)    (\1\)  .......  .......  .......  .......  .......        0.1
     indebtedness Tax credit for the cost of
     carrying tax-paid distilled spirits in
     wholesale inventories.........................
    Partial expensing of Gulf Opportunity Zone         (\1\)    (\1\)    (\1\)    (\3\)    (\3\)    (\1\)    (\1\)    (\1\)    (\3\)    (\3\)        0.1
     clean-up costs................................
    Additional first-year depreciation for Gulf          0.9      0.9      0.4     -0.1     -0.2      0.4      0.4      0.2    (\3\)     -0.1        2.9
     Opportunity Zone property.....................
    Ten-year carryback period for casualty losses        0.2    (\1\)    (\3\)    (\3\)    (\3\)  .......  .......  .......  .......  .......        0.2
     of public utility property attributable to
     Hurricane Katrina.............................
    Five-year carryback period for casualty losses       0.1    (\1\)    (\3\)    (\3\)    (\3\)  .......  .......  .......  .......  .......        0.1
     of public utility property attributable to
     Hurricane Katrina.............................
    Five-year carryback period for losses                1.0      0.3     -0.1     -0.2     -0.2  .......  .......  .......  .......  .......        0.9
     attributable to various expenses related to
     Hurricane Katrina.............................
    Tax credit for employee retention for employees    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)  .......        0.2
     affected by Hurricanes Katrina, Rita, and
     Wilma.........................................
Transportation
  Exclusion of interest on State and local             (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
   government qualified private activity bonds for
   highway projects and rail-truck transfer
   facilities......................................
  Provide a 50 percent tax credit for certain            0.1      0.1      0.1      0.1    (\1\)  .......  .......  .......  .......  .......        0.4
   expenditures for maintaining railroad tracks....
  Deferral of tax on capital construction funds of       0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......        0.4
   shipping companies..............................
  Exclusion of employer-paid transportation          .......  .......  .......  .......  .......      4.2      4.3      4.4      4.5      4.7       22.1
   benefits........................................
Community and Regional Development
  New York City Liberty Zone tax incentives........      0.4      0.2      0.1      0.0     -0.1     -0.1      0.2      0.1      0.2      0.1        1.0
  Empowerment zone tax incentives..................      0.3      0.4      0.4      0.4      0.2      0.4      0.4      0.4      0.5      0.3        3.7
  Renewal community tax incentives.................      0.2      0.2      0.2      0.2      0.2      0.3      0.4      0.4      0.4      0.3        2.9
  New markets tax credit...........................      0.2      0.3      0.4      0.3      0.3      0.3      0.4      0.5      0.5      0.4        3.7
  Expensing of environmental remediation costs         (\1\)    (\3\)    (\3\)    (\3\)    (\3\)    (\1\)    (\3\)    (\3\)    (\3\)    (\3\)       -0.2
   (Brownfields)...................................
  Exclusion of interest on State and local             (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
   qualified private activity bonds for green
   buildings and sustainable design projects.......
  Exclusion of interest on State and local               0.3      0.3      0.3      0.3      0.4      0.7      0.8      0.8      0.9      0.9        5.8
   government qualified private activity 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       .......  .......  .......  .......  .......      4.9      5.2      5.1      5.0      5.0       25.2
     education.....................................
    Deduction for interest on student loans........  .......  .......  .......  .......  .......      0.8      0.9      0.9      0.9      1.0        4.5
    Exclusion of earnings of Coverdell education     .......  .......  .......  .......  .......      0.1      0.1      0.1      0.2      0.2        0.7
     savings accounts..............................
    Exclusion of interest on educational savings     .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
     bonds.........................................
    Exclusion of tax on earnings of qualified        .......  .......  .......  .......  .......      0.7      0.8      0.9      1.0      1.0        4.3
     tuition programs..............................
    Exclusion of scholarship and fellowship income.  .......  .......  .......  .......  .......      1.5      1.6      1.7      1.8      1.9        8.5
    Exclusion of income attributable to the          .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
     discharge of certain student loan debt and
     NHSC Educational Loan repayments..............
    Exclusion of employer-provided education         .......  .......  .......  .......  .......      0.8      0.9      0.9      0.9      0.9        4.4
     assistance benefits...........................
    Parental personal exemption for students age 19  .......  .......  .......  .......  .......      0.5      0.2      0.2      0.1    (\1\)        1.0
     to 23.........................................
    Exclusion of interest on State and local             0.1      0.1      0.1      0.1      0.1      0.3      0.3      0.3      0.4      0.4        2.3
     government qualified private activity bonds
     for student loans.............................
    Exclusion of interest on State and local             0.4      0.5      0.5      0.5      0.5      1.1      1.2      1.2      1.3      1.3        8.4
     government qualified private activity bonds
     for private nonprofit and qualified public
     educational facilities........................
    Tax credit for holders of qualified zone             0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......        0.5
     academy bonds.................................
    Deduction for charitable contributions to            0.7      0.7      0.7      0.8      0.8      5.3      5.9      6.3      6.8      7.1       35.1
     educational institutions......................
  Employment:
    Exclusion of employee meals and lodging (other   .......  .......  .......  .......  .......      0.9      0.9      0.9      1.0      1.0        4.9
     than military)................................
    Exclusion of benefits provided under cafeteria   .......  .......  .......  .......  .......     27.9     30.6     33.4     36.6     40.0      168.5
     plans\4\......................................
    Exclusion of housing allowances for ministers..  .......  .......  .......  .......  .......      0.5      0.5      0.5      0.6      0.6        2.7
    Exclusion of miscellaneous fringe benefits.....  .......  .......  .......  .......  .......      6.6      6.8      7.0      7.2      7.7       35.2
    Exclusion of employee awards...................  .......  .......  .......  .......  .......      0.2      0.2      0.2      0.2      0.2        0.9
    Exclusion of income earned by voluntary          .......  .......  .......  .......  .......      3.3      3.4      3.5      3.7      3.8       17.6
     employees' beneficiary associations...........
    Special tax provisions for employee stock            0.8      0.9      0.9      1.0      1.1      0.3      0.3      0.3      0.3      0.3        6.2
     ownership plans (ESOPs).......................
    Work opportunity tax credit....................      0.2      0.1      0.1    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.8
    Welfare-to-work tax credit.....................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)  .......        0.2
    Deferral of taxation on spread on acquisition    .......  .......  .......  .......  .......      0.4      0.4      0.4      0.2      0.1        1.5
     of stock under incentive stock option plans
     and employee stock purchase plans\5\..........
  Social services:
    Tax credit for children under age 17 \6\.......  .......  .......  .......  .......  .......     46.0     45.9     46.1     46.0     46.0      230.0
    Tax credit for child and dependent care and      .......  .......  .......  .......  .......      3.1      2.7      2.7      2.6      2.5       13.5
     exclusion of employer-provided child care.....
    Tax credit for employer-provided dependent care    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.2
    Exclusion of certain foster care payments......  .......  .......  .......  .......  .......      0.6      0.6      0.7      0.7      0.8        3.4
    Adoption credit and employee adoption benefits   .......  .......  .......  .......  .......      0.4      0.5      0.5      0.5      0.5        2.4
     exclusion.....................................
    Deduction for charitable contributions, other        1.7      1.7      1.7      1.8      1.8     29.1     31.9     34.2     36.8     38.4      179.1
     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     .......  .......  .......  .......  .......     90.6     99.7    107.0    114.5    122.2      534.0
   care, health insurance premiums, and long-term
   care insurance premiums\8\......................
  Exclusion of medical care and TRICARE medical      .......  .......  .......  .......  .......      1.9      2.0      2.1      2.3      2.5       10.9
   insurance for military dependents, retirees, and
   retiree dependents..............................
  Deduction for health insurance premiums and long-  .......  .......  .......  .......  .......      3.8      4.2      4.5      4.9      5.2       22.6
   term care insurance premiums by the self-
   employed........................................
  Deduction for medical expenses and long-term care  .......  .......  .......  .......  .......      7.3      8.2      9.5     10.7     12.1       47.8
   expenses........................................
  Exclusion of workers' compensation benefits        .......  .......  .......  .......  .......      6.5      6.9      7.4      8.0      8.5       37.3
   (medical benefits)..............................
  Health savings accounts..........................  .......  .......  .......  .......  .......      0.1      0.3      0.6      0.9      1.2        3.2
  Exclusion of interest on State and local               0.6      0.7      0.7      0.8      0.8      1.7      1.8      1.9      2.0      2.1       13.1
   government qualified private activity bonds for
   private nonprofit hospital facilities...........
  Deduction for charitable contributions to health       0.8      0.8      0.9      0.9      0.9      3.7      4.0      4.3      4.7      4.8       25.8
   organizations...................................
  Tax credit for orphan drug research..............      0.2      0.3      0.3      0.3      0.3  .......  .......  .......  .......  .......        1.4
  Tax credit for purchase of health insurance by     .......  .......  .......  .......  .......      0.2      0.2      0.2      0.2      0.3        1.2
   certain displaced persons.......................
Medicare
  Exclusion of untaxed Medicare benefits:
    Hospital insurance (Part A)....................  .......  .......  .......  .......  .......     18.5     20.7     22.5     24.5     26.7      112.9
    Supplementary medical insurance (Part B).......  .......  .......  .......  .......  .......     12.5     14.2     15.4     16.7     18.1       76.9
    Prescription drug insurance (Part D)...........  .......  .......  .......  .......  .......      3.4      6.2      7.5      8.3      9.5       34.9
  Exclusion of certain subsidies to employers who        0.7      1.2      1.4      1.5      1.6  .......  .......  .......  .......  .......        6.3
   maintain prescription drug plans for Medicare
   enrollees.......................................
Income Security
  Exclusion of workers' compensation benefits        .......  .......  .......  .......  .......      2.5      2.6      2.7      2.7      2.8       13.2
   (disability and survivors payments).............
  Exclusion of damages on account of personal        .......  .......  .......  .......  .......      1.4      1.5      1.5      1.5      1.5        7.4
   physical injuries or physical sickness..........
  Exclusion of special benefits for disabled coal    .......  .......  .......  .......  .......  .......  .......  .......  .......  .......        0.0
   miners..........................................
  Exclusion of cash public assistance benefits.....  .......  .......  .......  .......  .......      3.4      3.6      3.7      3.9      4.0       18.6
  Net exclusion of pension contributions and
   earnings:
    Employer plans.................................  .......  .......  .......  .......  .......    104.1    110.2    115.2    120.8    126.7      577.1
    Individual retirement plans....................  .......  .......  .......  .......  .......     11.2     14.0     15.5     16.9     18.4       76.0
  Plans covering partners and sole proprietors       .......  .......  .......  .......  .......      9.4     10.3     10.8     11.3     11.6       53.4
   (sometimes referred to as Keogh plans)..........
  Tax credit for certain individuals for elective    .......  .......  .......  .......  .......      0.9      0.6    (\1\)  .......  .......        1.5
   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..........  .......  .......  .......  .......  .......      2.5      2.6      2.6      2.7      2.7       13.1
    Premiums on accident and disability insurance..  .......  .......  .......  .......  .......      2.6      2.8      2.9      3.0      3.1       14.4
  Additional standard deduction for the blind and    .......  .......  .......  .......  .......      1.6      1.6      1.7      1.7      1.8        8.4
   the elderly.....................................
  Tax credit for the elderly and disabled..........  .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.1
  Deduction for casualty and theft losses..........  .......  .......  .......  .......  .......      0.7      0.8      0.3      0.3      0.3        2.4
  Earned income credit (EIC).......................  .......  .......  .......  .......  .......     42.1     42.8     43.5     44.5     45.4      218.3
  Exclusion of survivor annuities paid to families   .......  .......  .......  .......  .......      0.2      0.1  .......  .......  .......        0.3
   of exclusion of cancellation of indebtedness
   income of Hurricane Katrina victims.............
Social Security and Railroad Retirement
  Exclusion of untaxed social security and railroad  .......  .......  .......  .......  .......     23.1     24.1     24.8     25.9     27.2      125.1
   retirement benefits.............................
Veterans' Benefits and Services
  Exclusion of veterans' disability compensation...  .......  .......  .......  .......  .......      3.6      3.8      3.9      4.0      4.0       19.2
  Exclusion of veterans' pensions..................  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1        0.6
  Exclusion of veterans' readjustment benefits.....  .......  .......  .......  .......  .......      0.2      0.3      0.3      0.3      0.3        1.3
  Exclusion of interest on State and local             (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)        0.3
   government qualified private activity bonds for
   veterans' housing...............................
General Purpose Fiscal Assistance
  Exclusion of interest on public purpose State and      7.3      7.8      8.2      8.6      9.0     18.7     20.1     21.1     22.1     23.1      146.0
   local government bonds..........................
  Deduction of nonbusiness State and local           .......  .......  .......  .......  .......     36.8     27.3     27.3     28.1     28.9      148.5
   government income, sales taxes and personal
   property taxes\9\...............................
  Tax credit for Puerto Rico and possession income,      0.3  .......  .......  .......  .......  .......  .......  .......  .......  .......        0.3
   and Puerto Rico economic activity...............
Interest
  Deferral of interest on savings bonds............  .......  .......  .......  .......  .......      1.1      1.1      1.2      1.2      1.2        5.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Positive tax expenditure of less than $50 million.
\2\ n addition, the exemption from excise tax for alcohol fuels results in a reduction in excise tax receipts, net of income tax effect, of $11.1
  billion over the fiscal years 2006 through 2010.
\3\ Negative tax expenditure of less than $50 million.
\4\ Estimate includes amounts of employer-provided health insurance purchased through cafeteria plans and employer-provided child care purchased through
  dependent care flexible spending accounts. These amounts are also included in other line items in this table.
\5\ Tax expenditure estimate does not include offsetting denial of corporate deduction for qualified stock option compensation.
\6\ Tax expenditure estimate includes refundable amounts, amounts used to offset income taxes, and amounts used to offset other taxes. 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: 50.1 billion in 2006,
  51.5 billion in 2007, 51.4 billion in 2008, and 52.2 billion in 2009 and 53.2 in 2010.
\7\ Estimate includes employer-provided child care purchased through dependent care flexible spending accounts.
\8\ Estimate includes employer-provided health insurance purchased through cafeteria plans.
\9\ Deduction for state and local sales taxes expires after December 31, 2005.

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

Source: Joint Committee on Taxation.


                                        TABLE 6.--FISCAL YEAR 2007 BUDGET RESOLUTION TOTAL SPENDING AND REVENUES
                                                                [In billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Fiscal year                                2006        2007        2008        2009        2010        2011       2007-2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Summary
Total Spending:
  BA..............................................................   2,710.142   2,732.057   2,795.823   2,908.515   3,027.377   3,169.654    14,633.426
  OT..............................................................   2,675.458   2,770.533   2,825.088   2,914.163   3,021.891   3,157.078    14,688.753
  On-Budget:
    BA............................................................   2,279.621   2,283.168   2,332.477   2,425.877   2,526.722   2,649.340    12,217.584
    OT............................................................   2,247.249   2,323.835   2,364.246   2,434.492   2,524.225   2,640.257    12,287.055
  Off-Budget:
    BA............................................................     430.521     448.889     463.346     482.638     500.655     520.314     2,415.842
    OT............................................................     428.209     446.698     460.842     479.671     497.666     516.821     2,401.698
Revenues:
  Total...........................................................   2,303.124   2,422.395   2,589.995   2,722.722   2,869.012   2,993.470    13,597.594
  On-Budget.......................................................   1,694.716   1,780.666   1,913.598   2,011.187   2,122.195   2,212.263    10,039.909
  Off-Budget......................................................     608.408     641.729     676.397     711.535     746.817     781.207     3,557.685
Surplus/Deficit (-):
  Total...........................................................    -372.334    -348.138    -235.093    -191.441    -152.879    -163.608    -1,091.159
  On-Budget.......................................................    -552.533    -543.169    -450.648    -423.305    -402.030    -427.994    -2,247.146
  Off-Budget......................................................     180.199     195.031     215.555     231.864     249.151     264.386     1,155.987
  Debt Subject to Limit (end of year).............................       8,527       9,180       9,741      10,272      10,778      11,304            na
  Debt Held by the Public (end of year)...........................       4,967       5,326       5,574       5,778       5,943       6,118            na

                                                                       By Function
National Defense (050):
  BA..............................................................     560.521     512.901     484.661     504.753     514.858     525.781     2,542.954
  OT..............................................................     525.513     534.858     505.516     505.874     512.573     524.894     2,583.715
International Affairs (150):
  BA..............................................................      31.770      31.216      34.206      34.178      33.869      34.293       167.762
  OT..............................................................      34.183      34.270      33.410      33.275      33.093      32.717       166.765
General Science, Space, and Technology (250):
  BA..............................................................      24.966      25.938      27.146      28.193      29.410      30.689       141.376
  OT..............................................................      24.068      25.108      26.083      27.135      28.263      29.483       136.072
Energy (270):
  BA..............................................................       1.829       2.262       2.688       2.317       2.190       2.094        11.551
  OT..............................................................       2.030       0.915       0.703       0.913       0.867       0.711         4.109
Natural Resources and Environment (300):
  BA..............................................................      35.187      29.650      28.833      29.238      28.687      28.595       145.003
  OT..............................................................      32.557      33.038      30.756      30.285      29.724      29.313       153.116
Agriculture (350):
  BA..............................................................      28.258      27.356      25.205      24.512      23.370      23.011       123.454
  OT..............................................................      26.489      26.782      24.564      23.829      22.560      22.281       120.016
Commerce and Housing Credit (370):
  BA..............................................................      13.136      16.018      11.178      11.978      13.162       7.666        60.002
  OT..............................................................       6.509       7.549       5.997       6.687       4.957       1.190        26.380
  On-Budget:
    BA............................................................      14.536      16.518      13.178      13.278      17.062      11.866        71.902
    OT............................................................       7.909       8.049       7.997       7.987       8.857       5.390        38.280
  Off-Budget:
    BA............................................................      -1.400      -0.500      -2.000      -1.300      -3.900      -4.200       -11.900
    OT............................................................      -1.400      -0.500      -2.000      -1.300      -3.900      -4.200       -11.900
Transportation (400):
  BA..............................................................      74.884      78.258      81.283      72.878      72.926      73.477       378.822
  OT..............................................................      70.892      75.774      78.557      78.329      77.828      77.833       388.321
Community and Regional Development (450):
  BA..............................................................      38.334      15.942      12.917      12.981      12.988      13.218        68.046
  OT..............................................................      59.905      31.345      25.443      21.661      17.777      13.680       109.906
Education, Training, Employment and Social Services (500):
  BA..............................................................     112.591      84.849      84.140      83.989      83.393      83.343       419.714
  OT..............................................................     106.441      87.530      85.316      83.273      82.575      82.597       421.291
Health (550):
  BA..............................................................     267.375     275.750     289.867     310.193     326.949     348.509     1,551.268
  OT..............................................................     264.431     274.299     290.959     308.548     326.707     347.074     1,547.587
Medicare (570):
  BA..............................................................     336.887     382.803     413.350     443.331     472.962     523.267     2,235.713
  OT..............................................................     331.524     388.276     413.417     443.022     473.238     523.305     2,241.258
Income Security (600):
  BA..............................................................     346.370     356.761     371.174     381.732     391.682     406.687     1,908.036
  OT..............................................................     356.896     362.086     374.267     384.278     393.209     406.960     1,920.800
Social Security (650):
  BA..............................................................     556.941     585.523     613.755     646.018     681.452     718.925     3,245.673
  OT..............................................................     554.629     583.332     611.251     643.051     678.463     715.432     3,231.529
  On-Budget:
    BA............................................................      14.820      16.922      18.814      20.694      22.866      26.480       105.776
    OT............................................................      14.820      16.922      18.814      20.694      22.866      26.480       105.776
  Off-Budget:
    BA............................................................     542.121     568.601     594.941     625.324     658.586     692.445     3,139.897
    OT............................................................     539.809     566.410     592.437     622.357     655.597     688.952     3,125.753
Veterans Benefits and Services (700):
  BA..............................................................      71.991      74.627      76.925      77.814      78.232      82.398       389.996
  OT..............................................................      70.057      73.944      77.200      77.982      78.264      82.249       389.639
Administration of Justice (750):
  BA..............................................................      40.709      42.795      42.908      43.454      43.816      44.862       217.835
  OT..............................................................      40.782      43.621      43.578      43.716      43.903      44.492       219.310
General Government (800):
  BA..............................................................      18.705      18.981      18.332      18.365      18.250      18.479        92.407
  OT..............................................................      18.864      18.873      18.318      18.099      18.020      18.213        91.523
Net Interest (900):
  BA..............................................................     218.228     247.083     266.904     278.209     288.068     296.913     1,377.177
  OT..............................................................     218.228     247.083     266.904     278.209     288.068     296.913     1,377.177
  On-Budget:
    BA............................................................     317.028     354.079     383.499     405.709     427.371     449.114     2,019.772
    OT............................................................     317.028     354.079     383.499     405.709     427.371     449.114     2,019.772
  Off-Budget:
    BA............................................................     -98.800    -106.996    -116.595    -127.500    -139.303    -152.201      -642.595
    OT............................................................     -98.800    -106.996    -116.595    -127.500    -139.303    -152.201      -642.595
Allowances (920):
  BA..............................................................  ..........       4.145      -7.922      -7.252      -7.384      -7.539       -25.952
  OT..............................................................  ..........       3.493      -5.752      -5.918      -6.882      -7.282       -22.341
Undistributed Offsetting Receipts (950):
  BA..............................................................     -68.540     -80.801     -81.727     -88.366     -81.503     -85.014      -417.411
  OT..............................................................     -68.540     -81.643     -81.399     -88.085     -81.316     -84.977      -417.420
  On-Budget:
    BA............................................................     -57.140     -68.585     -68.727     -74.480     -66.775     -69.284      -347.851
    OT............................................................     -57.140     -69.427     -68.399     -74.199     -66.588     -69.247      -347.860
  Off-Budget:
    BA............................................................     -11.400     -12.216     -13.000     -13.886     -14.728     -15.730       -69.560
    OT............................................................     -11.400     -12.216     -13.000     -13.886     -14.728     -15.730       -69.560
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                           TABLE 7.--FISCAL YEAR 2007 BUDGET RESOLUTION DISCRETIONARY SPENDING
                                                                [In billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Fiscal year                                 2006        2007        2008        2009        2010        2011      2007-2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Summary
Total Spending:
  BA...............................................................     992.126     929.534     891.172     911.987     921.460     933.433    4,587.586
  OT...............................................................   1,024.931   1,037.635     993.126     981.693     981.983     986.292    4,980.729
Defense:
  BA...............................................................     557.572     510.170     482.116     502.218     512.263     523.117    2,529.884
  OT...............................................................     522.574     532.150     502.954     503.329     509.967     522.220    2,570.620
Nondefense:
  BA...............................................................     434.554     419.364     409.056     409.769     409.197     410.316    2,057.702
  OT...............................................................     502.357     505.485     490.172     478.364     472.016     464.072    2,410.109

                                                                       By Function
National Defense (050):
  BA...............................................................     557.572     510.170     482.116     502.218     512.263     523.117    2,529.884
  OT...............................................................     522.574     532.150     502.954     503.329     509.967     522.220    2,570.620
International Affairs (150):
  BA...............................................................      35.664      32.970      35.034      34.889      34.503      34.834      172.230
  OT...............................................................      38.596      37.064      36.064      35.852      35.656      35.252      179.888
General Science, Space, and Technology (250):
  BA...............................................................      24.836      25.824      27.027      28.074      29.290      30.568      140.783
  OT...............................................................      24.001      25.035      25.986      27.028      28.154      29.367      135.570
Energy (270):
  BA...............................................................       3.845       3.831       4.137       3.736       3.652       3.632       18.988
  OT...............................................................       3.979       3.902       3.888       3.878       3.777       3.698       19.143
Natural Resources and Environment (300):
  BA...............................................................      35.323      28.173      27.765      27.732      27.377      27.710      138.757
  OT...............................................................      33.462      32.619      30.135      29.026      28.377      28.229      148.386
Agriculture (350):
  BA...............................................................       6.051       5.695       5.563       5.562       5.521       5.606       27.947
  OT...............................................................       6.035       5.943       5.638       5.587       5.510       5.556       28.234
Commerce and Housing Credit (370):
  BA...............................................................       1.992       3.131       2.591       3.260       7.128       1.804       17.914
  OT...............................................................       2.023       3.539       2.868       3.123       6.075       2.855       18.460
  On-budget:
    BA.............................................................       1.992       3.131       2.591       3.260       7.128       1.804       17.914
    OT.............................................................       2.023       3.539       2.868       3.123       6.075       2.855       18.460
  Off-budget:
    BA.............................................................  ..........  ..........  ..........  ..........  ..........  ..........  ...........
    OT.............................................................  ..........  ..........  ..........  ..........  ..........  ..........  ...........
Transportation (400):
  BA...............................................................      27.793      22.915      23.903      24.197      24.206      24.701      119.922
  OT...............................................................      70.042      73.808      76.178      75.996      75.569      75.561      377.112
Community and Regional Development (450):
  BA...............................................................      17.242      13.048      13.016      13.112      13.144      13.399       65.719
  OT...............................................................      38.613      28.692      25.741      22.056      18.328      14.037      108.854
Education, Training, Employment and Social Services (500):
  BA...............................................................      79.972      74.688      73.498      73.120      72.117      72.972      366.395
  OT...............................................................      80.869      78.121      76.160      73.804      72.738      72.522      373.345
Health (550):
  BA...............................................................      54.152      53.000      49.667      51.884      49.400      50.160      254.111
  OT...............................................................      51.651      53.096      52.143      51.257      50.325      49.966      256.787
Medicare (570):
  BA...............................................................       4.912       4.968       4.870       4.844       4.779       4.836       24.297
  OT...............................................................       4.770       4.924       4.894       4.853       4.794       4.826       24.291
Income Security (600):
  BA...............................................................      47.426      47.706      48.082      47.828      47.162      47.717      238.495
  OT...............................................................      54.693      54.931      54.013      53.032      51.242      50.271      263.489
Social Security (650):
  BA...............................................................       4.568       4.799       4.652       4.627       4.561       4.616       23.255
  OT...............................................................       4.576       4.818       4.658       4.640       4.572       4.613       23.301
  On-budget:
    BA.............................................................  ..........  ..........  ..........  ..........  ..........  ..........  ...........
    OT.............................................................  ..........  ..........  ..........  ..........  ..........  ..........  ...........
  Off-budget:
    BA.............................................................       4.568       4.799       4.652       4.627       4.561       4.616       23.255
    OT.............................................................       4.576       4.818       4.658       4.640       4.572       4.613       23.301
Veterans Benefits and Services (700):
  BA...............................................................      34.358      36.861      35.188      34.858      34.222      34.431      175.560
  OT...............................................................      32.478      36.271      35.537      35.076      34.284      34.285      175.453
Administration of Justice (750):
  BA...............................................................      39.939      40.651      42.267      42.905      43.362      44.513      213.698
  OT...............................................................      39.919      42.355      42.462      42.896      43.510      44.200      215.423
General Government (800):
  BA...............................................................      16.481      16.769      16.406      16.329      16.104      16.302       81.910
  OT...............................................................      16.650      16.684      16.247      16.114      15.934      16.062       81.041
Allowances (920):
  BA...............................................................  ..........       4.335      -4.610      -7.188      -7.331      -7.485      -22.279
  OT...............................................................  ..........       3.683      -2.440      -5.854      -6.829      -7.228      -18.668
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                             TABLE 8.--FISCAL YEAR 2007 BUDGET RESOLUTION MANDATORY SPENDING
                                                                [In billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Fiscal year                                 2006        2007        2008        2009        2010        2011      2007-2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Summary
Total Spending:
  BA...............................................................   1,718.016   1,802.523   1,904.651   1,996.528   2,105.917   2,236.221   10,045.840
  OT...............................................................   1,650.527   1,732.898   1,831.962   1,932.470   2,039.908   2,170.786    9,708.024
On-Budget:
  BA...............................................................   1,292.063   1,358.433   1,445.957   1,518.517   1,609.823   1,720.523    7,653.253
  OT...............................................................   1,226.894   1,291.018   1,375.778   1,457.439   1,546.814   1,658.578    7,329.627
Off-Budget:
  BA...............................................................     425.953     444.090     458.694     478.011     496.094     515.698    2,392.587
  OT...............................................................     423.633     441.880     456.184     475.031     493.094     512.208    2,378.397

                                                                       By Function
National Defense (050):
  BA...............................................................       2.949       2.731       2.545       2.535       2.595       2.664       13.070
  OT...............................................................       2.939       2.708       2.562       2.545       2.606       2.674       13.095
International Affairs (150):
  BA...............................................................      -3.894      -1.754      -0.828      -0.711      -0.634      -0.541       -4.468
  OT...............................................................      -4.413      -2.794      -2.654      -2.577      -2.563      -2.535      -13.123
General Science, Space, and Technology (250):
  BA...............................................................       0.130       0.114       0.119       0.119       0.120       0.121        0.593
  OT...............................................................       0.067       0.073       0.097       0.107       0.109       0.116        0.502
Energy (270):
  BA...............................................................      -2.016      -1.569      -1.449      -1.419      -1.462      -1.538       -7.437
  OT...............................................................      -1.949      -2.987      -3.185      -2.965      -2.910      -2.987      -15.034
Natural Resources and Environment (300):
  BA...............................................................      -0.136       1.477       1.068       1.506       1.310       0.885        6.246
  OT...............................................................      -0.905       0.419       0.621       1.259       1.347       1.084        4.730
Agriculture (350):
  BA...............................................................      22.207      21.661      19.642      18.950      17.849      17.405       95.507
  OT...............................................................      20.454      20.839      18.926      18.242      17.050      16.725       91.782
Commerce and Housing Credit (370):
  BA...............................................................      11.144      12.887       8.587       8.718       6.034       5.862       42.088
  OT...............................................................       4.486       4.010       3.129       3.564      -1.118      -1.665        7.920
  On-budget:
    BA.............................................................      12.544      13.387      10.587      10.018       9.934      10.062       53.988
    OT.............................................................       5.886       4.510       5.129       4.864       2.782       2.535       19.820
  Off-budget:
    BA.............................................................      -1.400      -0.500      -2.000      -1.300      -3.900      -4.200      -11.900
    OT.............................................................      -1.400      -0.500      -2.000      -1.300      -3.900      -4.200      -11.900
Transportation (400):
  BA...............................................................      47.091      55.343      57.380      48.681      48.720      48.776      258.900
  OT...............................................................       0.850       1.966       2.379       2.333       2.259       2.272       11.209
Community and Regional Development (450):
  BA...............................................................      21.092       2.894      -0.099      -0.131      -0.156      -0.181        2.327
  OT...............................................................      21.292       2.653      -0.298      -0.395      -0.551      -0.357        1.052
Education, Training, Employment and Social Services (500):
  BA...............................................................      32.619      10.161      10.642      10.869      11.276      10.371       53.319
  OT...............................................................      25.572       9.409       9.156       9.469       9.837      10.075       47.946
Health (550):
  BA...............................................................     213.223     222.750     240.200     258.309     277.549     298.349    1,297.157
  OT...............................................................     212.780     221.203     238.816     257.291     276.382     297.108    1,290.800
Medicare (570):
  BA...............................................................     331.975     377.835     408.480     438.487     468.183     518.431    2,211.416
  OT...............................................................     326.754     383.352     408.523     438.169     468.444     518.479    2,216.967
Income Security (600):
  BA...............................................................     298.944     309.055     323.092     333.904     344.520     358.970    1,669.541
  OT...............................................................     302.203     307.155     320.254     331.246     341.967     356.689    1,657.311
Social Security (650):
  BA...............................................................     552.373     580.724     609.103     641.391     676.891     714.309    3,222.418
  OT...............................................................     550.053     578.514     606.593     638.411     673.891     710.819    3,208.228
  On-budget:
    BA.............................................................      14.820      16.922      18.814      20.694      22.866      26.480      105.776
    OT.............................................................      14.820      16.922      18.814      20.694      22.866      26.480      105.776
  Off-budget:
    BA.............................................................     537.553     563.802     590.289     620.697     654.025     687.829    3,116.642
    OT.............................................................     535.233     561.592     587.779     617.717     651.025     684.339    3,102.452
Veterans Benefits and Services (700):
  BA...............................................................      37.633      37.766      41.737      42.956      44.010      47.967      214.436
  OT...............................................................      37.579      37.673      41.663      42.906      43.980      47.964      214.186
Administration of Justice (750):
  BA...............................................................       0.770       2.144       0.641       0.549       0.454       0.349        4.137
  OT...............................................................       0.863       1.266       1.116       0.820       0.393       0.292        3.887
General Government (800):
  BA...............................................................       2.224       2.212       1.926       2.036       2.146       2.177       10.497
  OT...............................................................       2.214       2.189       2.071       1.985       2.086       2.151       10.482
Net Interest (900):
  BA...............................................................     218.228     247.083     266.904     278.209     288.068     296.913    1,377.177
  OT...............................................................     218.228     247.083     266.904     278.209     288.068     296.913    1,377.177
  On-budget:
    BA.............................................................     317.028     354.079     383.499     405.709     427.371     449.114    2,019.772
    OT.............................................................     317.028     354.079     383.499     405.709     427.371     449.114    2,019.772
  Off-budget:
    BA.............................................................     -98.800    -106.996    -116.595    -127.500    -139.303    -152.201     -642.595
    OT.............................................................     -98.800    -106.996    -116.595    -127.500    -139.303    -152.201     -642.595
Allowances (920):
  BA...............................................................  ..........      -0.190      -3.312      -0.064      -0.053      -0.054       -3.673
  OT...............................................................  ..........      -0.190      -3.312      -0.064      -0.053      -0.054       -3.673
Undistributed Offsetting Receipts (950):
  BA...............................................................     -68.540     -80.801     -81.727     -88.366     -81.503     -85.014     -417.411
  OT...............................................................     -68.540     -81.643     -81.399     -88.085     -81.316     -84.977     -417.420
  On-budget:
    BA.............................................................     -57.140     -68.585     -68.727     -74.480     -66.775     -69.284     -347.851
    OT.............................................................     -57.140     -69.427     -68.399     -74.199     -66.588     -69.247     -347.860
  Off-budget:
    BA.............................................................     -11.400     -12.216     -13.000     -13.886     -14.728     -15.730      -69.560
    OT.............................................................     -11.400     -12.216     -13.000     -13.886     -14.728     -15.730      -69.560
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                       TABLE 9.--FISCAL YEAR 2007 BUDGET RESOLUTION MINUS THE PRESIDENT'S REQUEST
                                                                [In billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Fiscal year                                 2006        2007        2008        2009        2010        2011      2007-2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Summary
Total Spending:
  BA...............................................................      -0.512       6.352      -0.569        3.81       1.146     -13.785       -3.046
  OT...............................................................       0.312       4.843       4.654       8.383       4.988     -10.142       12.726
  On-Budget:
    BA.............................................................      -0.512       9.211       2.459       7.447       5.436       7.493       32.046
    OT.............................................................       0.312       7.702       7.682       12.02       9.278      11.136       47.818
  Off-Budget:
    BA.............................................................           0      -2.859      -3.028      -3.637       -4.29     -21.278      -35.092
    OT.............................................................           0      -2.859      -3.028      -3.637       -4.29     -21.278      -35.092
Revenues:
  Total............................................................      -0.907      -8.777       5.376      10.587      17.201      29.794       54.181
  On-Budget........................................................      -0.907      -8.689       5.442      10.832      17.723      30.609       55.917
  Off-Budget.......................................................           0      -0.088      -0.066      -0.245      -0.522      -0.815       -1.736
Surplus/Deficit (-):
  Total............................................................      -1.219      -13.62       0.722       2.204      12.213      39.936       41.455
  On-Budget........................................................      -1.219     -16.391       -2.24      -1.188       8.445      19.473        8.099
  Off-Budget.......................................................           0       2.771       2.962       3.392       3.768      20.463       33.356

                                                                       By Function
National Defense (050):
  BA...............................................................      -0.623      -0.019      -0.035      -0.027      -0.005       -0.01       -0.096
  OT...............................................................      -0.442      -1.028       0.335       0.332       0.038       0.024       -0.299
International Affairs (150):
  BA...............................................................      -0.166      -2.214      -2.214      -2.239      -2.269      -2.284       -11.22
  OT...............................................................       -0.01      -0.361      -0.734      -1.213      -1.473      -1.614       -5.395
General Science, Space, and Technology (250):
  BA...............................................................        0.03        -0.3        -0.3        -0.3        -0.3        -0.3         -1.5
  OT...............................................................       0.009      -0.051      -0.196       -0.26      -0.262      -0.262       -1.031
Energy (270):
  BA...............................................................           0        0.05        0.05        0.05        0.05        0.05         0.25
  OT...............................................................           0        0.01        0.03        0.05        0.05        0.05         0.19
Natural Resources and Environment (300):
  BA...............................................................      -0.001      -0.002       0.121       0.125       0.103       0.104        0.451
  OT...............................................................       0.024       0.047       0.059       0.091       0.102       0.142        0.441
Agriculture (350):
  BA...............................................................           0       0.095       0.841       0.986       0.889       0.807        3.618
  OT...............................................................           0       0.095       0.719       0.971       0.886       0.804        3.475
Commerce and Housing Credit (370):
  BA...............................................................           0      -2.047      -2.076      -2.101      -2.124      -2.144      -10.492
  OT...............................................................      -0.029      -3.361      -3.463      -3.547      -3.628      -3.707      -17.706
  On-budget:
    BA.............................................................           0       1.024       1.307       1.476       1.761        2.09        7.658
    OT.............................................................      -0.029       -0.29       -0.08        0.03       0.257       0.527        0.444
  Off-budget:
    BA.............................................................           0      -3.071      -3.383      -3.577      -3.885      -4.234       -18.15
    OT.............................................................           0      -3.071      -3.383      -3.577      -3.885      -4.234       -18.15
Transportation (400):
  BA...............................................................       0.026      -0.132      -0.132      -0.132      -0.132      -0.132        -0.66
  OT...............................................................       0.003           0      -0.005      -0.007      -0.009      -0.009        -0.03
Community and Regional Development (450):
  BA...............................................................       0.028       1.185       0.995       0.965        0.99       0.965          5.1
  OT...............................................................       0.358       0.063       0.082       0.568       0.632       0.787        2.132
Education, Training, Employment and Social Services (500):
  BA...............................................................       -0.02      -0.089      -0.122      -0.142      -0.152      -0.167       -0.672
  OT...............................................................       -0.02      -0.057      -0.089      -0.123      -0.133      -0.145       -0.547
Health (550):
  BA...............................................................           0      -1.535       -2.74       -3.06      -4.069      -4.608      -16.012
  OT...............................................................           0       -1.53      -2.338      -2.987       -3.54       -4.37      -14.765
Medicare (570):
  BA...............................................................           0        2.63        5.37        7.66        9.19       12.19        37.04
  OT...............................................................           0        2.63        5.37        7.66        9.19       12.19        37.04
Income Security (600):
  BA...............................................................       0.798      -1.506      -0.054      -0.356      -0.234      -0.054       -2.204
  OT...............................................................       0.707      -0.881       3.418       3.492        3.64       3.994       13.663
Social Security (650):
  BA...............................................................           0       0.208        0.35       -0.06      -0.402     -16.843      -16.747
  OT...............................................................           0       0.208        0.35       -0.06      -0.402     -16.843      -16.747
  On-budget:
    BA.............................................................           0           0           0           0           0           0            0
    OT.............................................................           0           0           0           0           0           0            0
  Off-budget:
    BA.............................................................           0       0.208        0.35       -0.06      -0.402     -16.843      -16.747
    OT.............................................................           0       0.208        0.35       -0.06      -0.402     -16.843      -16.747
Veterans Benefits and Services (700):
  BA...............................................................       -0.05       0.673       0.795       0.795       0.795       0.795        3.853
  OT...............................................................       0.214        0.89       0.737       0.664       0.685       0.712        3.688
Administration of Justice (750):
  BA...............................................................       0.002       0.904       0.909       0.909       0.909        0.91        4.541
  OT...............................................................       0.013       0.204       0.467       0.654       0.791        0.91        3.026
General Government (800):
  BA...............................................................      -0.134      -0.485      -0.749       -3.16      -0.538      -0.979       -5.911
  OT...............................................................      -0.113      -0.319       -0.68      -3.133      -0.526      -0.977       -5.635
Net Interest (900):
  BA...............................................................      -0.402       0.911       2.299       1.987       1.549       0.033        6.779
  OT...............................................................      -0.402       0.911       2.299       1.987       1.549       0.033        6.779
  On-budget:
    BA.............................................................      -0.402       0.907       2.294       1.987       1.552       0.234        6.974
    OT.............................................................      -0.402       0.907       2.294       1.987       1.552       0.234        6.974
  Off-budget:
    BA.............................................................           0       0.004       0.005           0      -0.003      -0.201       -0.195
    OT.............................................................           0       0.004       0.005           0      -0.003      -0.201       -0.195
Allowances (920):
  BA...............................................................           0       4.145      -7.922      -7.252      -7.384      -7.539      -25.952
  OT...............................................................           0       3.493      -5.752      -5.918      -6.882      -7.282      -22.341
Undistributed Offsetting Receipts (950):
  BA...............................................................           0        3.88       4.045       9.162        4.28       5.421       26.788
  OT...............................................................           0        3.88       4.045       9.162        4.28       5.421       26.788
  On-budget:
    BA.............................................................           0        3.88       4.045       9.162        4.28       5.421       26.788
    OT.............................................................           0        3.88       4.045       9.162        4.28       5.421       26.788
  Off-budget:
    BA.............................................................           0           0           0           0           0           0            0
    OT.............................................................           0           0           0           0           0           0            0
--------------------------------------------------------------------------------------------------------------------------------------------------------


           TABLE 10.--FISCAL YEAR 2007 BUDGET RESOLUTION COMPARED TO 2006: TOTAL SPENDING AND REVENUES
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
               Fiscal year                   2007        2008        2009        2010        2011      2007-2011
----------------------------------------------------------------------------------------------------------------
                                                     Summary
Total Spending:
  BA....................................      21.915      85.681     198.373     317.235     459.512   1,082.716
  OT....................................      95.075      149.63     238.705     346.433      481.62   1,311.463
  On-Budget:
    BA..................................       3.547      52.856     146.256     247.101     369.719     819.479
    OT..................................      76.586     116.997     187.243     276.976     393.008    1,050.81
  Off-Budget:
    BA..................................      18.368      32.825      52.117      70.134      89.793     263.237
    OT..................................      18.489      32.633      51.462      69.457      88.612     260.653
Revenues:
  Total.................................     119.271     286.871     419.598     565.888     690.346   2,081.974
  On-Budget.............................       85.95     218.882     316.471     427.479     517.547   1,566.329
  Off-Budget............................      33.321      67.989     103.127     138.409     172.799     515.645
Surplus/Deficit (-):
  Total.................................      24.196     137.241     180.893     219.455     208.726     770.511
  On-Budget.............................       9.364     101.885     129.228     150.503     124.539     515.519
  Off-Budget............................      14.832      35.356      51.665      68.952      84.187     254.992

                                                   By Function
National Defense (050):
  BA....................................      -47.62      -75.86     -55.768     -45.663      -34.74    -259.651
  OT....................................       9.345     -19.997     -19.639      -12.94      -0.619      -43.85
International Affairs (150):
  BA....................................      -0.554       2.436       2.408       2.099       2.523       8.912
  OT....................................       0.087      -0.773      -0.908       -1.09      -1.466       -4.15
General Science, Space, and Technology
 (250):
  BA....................................       0.972        2.18       3.227       4.444       5.723      16.546
  OT....................................        1.04       2.015       3.067       4.195       5.415      15.732
Energy (270):
  BA....................................       0.433       0.859       0.488       0.361       0.265       2.406
  OT....................................      -1.115      -1.327      -1.117      -1.163      -1.319      -6.041
Natural Resources and Environment (300):
  BA....................................      -5.537      -6.354      -5.949        -6.5      -6.592     -30.932
  OT....................................       0.481      -1.801      -2.272      -2.833      -3.244      -9.669
Agriculture (350):
  BA....................................      -0.902      -3.053      -3.746      -4.888      -5.247     -17.836
  OT....................................       0.293      -1.925       -2.66      -3.929      -4.208     -12.429
Commerce and Housing Credit (370):
  BA....................................       2.882      -1.958      -1.158       0.026       -5.47      -5.678
  OT....................................        1.04      -0.512       0.178      -1.552      -5.319      -6.165
  On-budget:
    BA..................................       1.982      -1.358      -1.258       2.526       -2.67      -0.778
    OT..................................        0.14       0.088       0.078       0.948      -2.519      -1.265
  Off-budget:
    BA..................................         0.9        -0.6         0.1        -2.5        -2.8        -4.9
    OT..................................         0.9        -0.6         0.1        -2.5        -2.8        -4.9
Transportation (400):
  BA....................................       3.374       6.399      -2.006      -1.958      -1.407       4.402
  OT....................................       4.882       7.665       7.437       6.936       6.941      33.861
Community and Regional Development
 (450):
  BA....................................     -22.392     -25.417     -25.353     -25.346     -25.116    -123.624
  OT....................................      -28.56     -34.462     -38.244     -42.128     -46.225    -189.619
Education, Training, Employment and
 Social Services (500):
  BA....................................     -27.742     -28.451     -28.602     -29.198     -29.248    -143.241
  OT....................................     -18.911     -21.125     -23.168     -23.866     -23.844    -110.914
Health (550):
  BA....................................       8.375      22.492      42.818      59.574      81.134     214.393
  OT....................................       9.868      26.528      44.117      62.276      82.643     225.432
Medicare (570):
  BA....................................      45.916      76.463     106.444     136.075      186.38     551.278
  OT....................................      56.752      81.893     111.498     141.714     191.781     583.638
Income Security (600):
  BA....................................      10.391      24.804      35.362      45.312      60.317     176.186
  OT....................................        5.19      17.371      27.382      36.313      50.064      136.32
Social Security (650):
  BA....................................      28.582      56.814      89.077     124.511     161.984     460.968
  OT....................................      28.703      56.622      88.422     123.834     160.803     458.384
  On-budget:
    BA..................................       2.102       3.994       5.874       8.046       11.66      31.676
    OT..................................       2.102       3.994       5.874       8.046       11.66      31.676
  Off-budget:
    BA..................................       26.48       52.82      83.203     116.465     150.324     429.292
    OT..................................      26.601      52.628      82.548     115.788     149.143     426.708
Veterans Benefits and Services (700):
  BA....................................       2.636       4.934       5.823       6.241      10.407      30.041
  OT....................................       3.887       7.143       7.925       8.207      12.192      39.354
Administration of Justice (750):
  BA....................................       2.086       2.199       2.745       3.107       4.153       14.29
  OT....................................       2.839       2.796       2.934       3.121        3.71        15.4
General Government (800):
  BA....................................       0.276      -0.373       -0.34      -0.455      -0.226      -1.118
  OT....................................       0.009      -0.546      -0.765      -0.844      -0.651      -2.797
Net Interest (900):
  BA....................................      28.855      48.676      59.981       69.84      78.685     286.037
  OT....................................      28.855      48.676      59.981       69.84      78.685     286.037
  On-budget:
    BA..................................      37.051      66.471      88.681     110.343     132.086     434.632
    OT..................................      37.051      66.471      88.681     110.343     132.086     434.632
  Off-budget:
    BA..................................      -8.196     -17.795       -28.7     -40.503     -53.401    -148.595
    OT..................................      -8.196     -17.795       -28.7     -40.503     -53.401    -148.595
Allowances (920):
  BA....................................       4.145      -7.922      -7.252      -7.384      -7.539     -25.952
  OT....................................       3.493      -5.752      -5.918      -6.882      -7.282     -22.341
Undistributed Offsetting Receipts (950):
  BA....................................     -12.261     -13.187     -19.826     -12.963     -16.474     -74.711
  OT....................................     -13.103     -12.859     -19.545     -12.776     -16.437      -74.72
  On-budget:
    BA..................................     -11.445     -11.587      -17.34      -9.635     -12.144     -62.151
    OT..................................     -12.287     -11.259     -17.059      -9.448     -12.107      -62.16
  Off-budget:
    BA..................................      -0.816        -1.6      -2.486      -3.328       -4.33      -12.56
    OT..................................      -0.816        -1.6      -2.486      -3.328       -4.33      -12.56
----------------------------------------------------------------------------------------------------------------


           TABLE 11.--FISCAL YEAR 2007 BUDGET RESOLUTION COMPARED TO 2006: TOTAL SPENDING AND REVENUES
                                               [Percentage change]
----------------------------------------------------------------------------------------------------------------
                          Fiscal year                             2007      2008      2009      2010      2011
----------------------------------------------------------------------------------------------------------------
                                                     Summary
Total Spending:
  BA..........................................................       0.8       3.2       7.3      11.7        17
  OT..........................................................       3.6       5.6       8.9      12.9        18
  On-Budget:
    BA........................................................       0.2       2.3       6.4      10.8      16.2
    OT........................................................       3.4       5.2       8.3      12.3      17.5
  Off-Budget:
    BA........................................................       4.3       7.6      12.1      16.3      20.9
    OT........................................................       4.3       7.6        12      16.2      20.7
Revenues:
  Total.......................................................       5.2      12.5      18.2      24.6        30
  On-Budget...................................................       5.1      12.9      18.7      25.2      30.5
  Off-Budget..................................................       5.5      11.2        17      22.7      28.4
Surplus/Deficit (-):
  Total.......................................................      -6.5     -36.9     -48.6     -58.9     -56.1
  On-Budget...................................................      -1.7     -18.4     -23.4     -27.2     -22.5
  Off-Budget..................................................       8.2      19.6      28.7      38.3      46.7

                                                   By Function
National Defense (050):
  BA..........................................................      -8.5     -13.5      -9.9      -8.1      -6.2
  OT..........................................................       1.8      -3.8      -3.7      -2.5      -0.1
International Affairs (150):
  BA..........................................................      -1.7       7.7       7.6       6.6       7.9
  OT..........................................................       0.3      -2.3      -2.7      -3.2      -4.3
General Science, Space, and Technology (250):
  BA..........................................................       3.9       8.7      12.9      17.8      22.9
  OT..........................................................       4.3       8.4      12.7      17.4      22.5
Energy (270):
  BA..........................................................      23.7        47      26.7      19.7      14.5
  OT..........................................................     -54.9     -65.4       -55     -57.3       -65
Natural Resources and Environment (300):
  BA..........................................................     -15.7     -18.1     -16.9     -18.5     -18.7
  OT..........................................................       1.5      -5.5        -7      -8.7       -10
Agriculture (350):
  BA..........................................................      -3.2     -10.8     -13.3     -17.3     -18.6
  OT..........................................................       1.1      -7.3       -10     -14.8     -15.9
Commerce and Housing Credit (370):
  BA..........................................................      21.9     -14.9      -8.8       0.2     -41.6
  OT..........................................................        16      -7.9       2.7     -23.8     -81.7
  On-budget:
    BA........................................................      13.6      -9.3      -8.7      17.4     -18.4
    OT........................................................       1.8       1.1         1        12     -31.8
  Off-budget:
    BA........................................................     -64.3      42.9      -7.1     178.6       200
    OT........................................................     -64.3      42.9      -7.1     178.6       200
Transportation (400):
  BA..........................................................       4.5       8.5      -2.7      -2.6      -1.9
  OT..........................................................       6.9      10.8      10.5       9.8       9.8
Community and Regional Development (450):
  BA..........................................................     -58.4     -66.3     -66.1     -66.1     -65.5
  OT..........................................................     -47.7     -57.5     -63.8     -70.3     -77.2
Education, Training, Employment and Social Services (500):
  BA..........................................................     -24.6     -25.3     -25.4     -25.9       -26
  OT..........................................................     -17.8     -19.8     -21.8     -22.4     -22.4
Health (550):
  BA..........................................................       3.1       8.4        16      22.3      30.3
  OT..........................................................       3.7        10      16.7      23.6      31.3
Medicare (570):
  BA..........................................................      13.6      22.7      31.6      40.4      55.3
  OT..........................................................      17.1      24.7      33.6      42.7      57.8
Income Security (600):
  BA..........................................................         3       7.2      10.2      13.1      17.4
  OT..........................................................       1.5       4.9       7.7      10.2        14
Social Security (650):
  BA..........................................................       5.1      10.2        16      22.4      29.1
  OT..........................................................       5.2      10.2      15.9      22.3        29
  On-budget:
    BA........................................................      14.2        27      39.6      54.3      78.7
    OT........................................................      14.2        27      39.6      54.3      78.7
  Off-budget:
    BA........................................................       4.9       9.7      15.3      21.5      27.7
    OT........................................................       4.9       9.7      15.3      21.4      27.6
Veterans Benefits and Services (700):
  BA..........................................................       3.7       6.9       8.1       8.7      14.5
  OT..........................................................       5.5      10.2      11.3      11.7      17.4
Administration of Justice (750):
  BA..........................................................       5.1       5.4       6.7       7.6      10.2
  OT..........................................................         7       6.9       7.2       7.7       9.1
General Government (800):
  BA..........................................................       1.5        -2      -1.8      -2.4      -1.2
  OT..........................................................         0      -2.9      -4.1      -4.5      -3.5
Net Interest (900):
  BA..........................................................      13.2      22.3      27.5        32      36.1
  OT..........................................................      13.2      22.3      27.5        32      36.1
  On-budget:
    BA........................................................      11.7        21        28      34.8      41.7
    OT........................................................      11.7        21        28      34.8      41.7
  Off-budget:
    BA........................................................       8.3        18        29        41        54
    OT........................................................       8.3        18        29        41        54
Allowances (920):
  BA..........................................................        na        na        na        na        na
  OT..........................................................        na        na        na        na        na
Undistributed Offsetting Receipts (950):
  BA..........................................................      17.9      19.2      28.9      18.9        24
  OT..........................................................      19.1      18.8      28.5      18.6        24
  On-budget:
    BA........................................................        20      20.3      30.3      16.9      21.3
    OT........................................................      21.5      19.7      29.9      16.5      21.2
  Off-budget:
    BA........................................................       7.2        14      21.8      29.2        38
    OT........................................................       7.2        14      21.8      29.2        38
----------------------------------------------------------------------------------------------------------------

                             Reconciliation

    As permitted in Section 310 of the Congressional Budget Act 
(2 U.S.C. 641), this budget resolution provides for a 
reconciliation bill. It instructs eight authorizing committees 
to submit changes in law necessary to achieve the direct 
spending levels provided for in the budget resolution to 
continue the reform of mandatory spending. These committees 
must submit their legislative text to the Budget Committee by 
May 12, 2006.
    Any committee receiving a reconciliation directive must 
increase or decrease spending by the specified amount, or in 
the case of revenue, increase or decrease revenue by the 
specified amount. (This last instruction is usually, but not 
always, 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 
markup as they would on any other bill, but it is not reported 
to the House, but rather submitted to the Budget Committee. 
That committee then binds all the submissions together and 
votes reports out of committee as a single bill--the Budget 
Committee may not make any substantive changes in the submitted 
text, except the ministerial task of binding it together. The 
committees being given directives are given a deadline for 
reporting their legislative text to the Budget Committee. If 
only one committee is reconciled to make changes it reports 
that measure directly to the House, and does not submit it to 
the Budget Committee.
    A 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) is considered 
extraneous and hence violates what has become known as ``the 
Byrd Rule,'' and may be removed from the bill unless sixty 
Senators vote to waive the point of order. Reconciliation does 
not apply to discretionary spending, which is controlled by the 
Appropriations Committees.
    For the first reconciliation bill, the committees which 
must submit legislative language to the Budget Committee are as 
follows:
          Committee on Agriculture
          Committee on Armed Services
          Committee on Education and the Workforce
          Committee on Financial Services
          Committee on International Relations
          Committee on the Judiciary
          Committee on Transportation and Infrastructure
          Committee on Ways and Means
    The committees may make whatever changes in the law they 
deem appropriate as long as they achieve the specified amount 
of savings for the period of fiscal years 2007 through 2011.
    The following table indicates the amounts required from 
each reconciled committee:

 TABLE 12.--RECONCILIATION INSTRUCTIONS TO HOUSE AUTHORIZING COMMITTEES*
      [By fiscal year in millions of dollars of deficit reduction]
------------------------------------------------------------------------
                                                               2007-2011
------------------------------------------------------------------------
Committee on Agriculture....................................         -55
Committee on Armed Services.................................        -175
Committee on Education and the Workforce....................      -1,323
Committee on Financial Services.............................        -400
Committee on International Affairs..........................        -250
Committee on the Judiciary..................................        -500
Committee on Transportation and Infrastructure..............         -50
Committee on Ways and Means.................................      -4,000
                                                             -----------
    Total...................................................      -6,753
------------------------------------------------------------------------
*Submissions to provide for the continued reform of mandatory spending
  and to achieve deficit reduction (due May 12, 2006).

          Section-by-Section Summary of the Budget Resolution

Section 1. Concurrent resolution on the budget for fiscal year 2007
    In accordance with section 301(a) of the Congressional 
Budget Act of 1974,
    Subsection (a) establishes the budgetary levels for fiscal 
year 2007, and the levels for each of the four fiscal years 
following the budget year, fiscal years 2008 through 2011.
    Subsection (b) is the table of contents for the budget 
resolution.

                Title I--Recommended Levels and Amounts

Section 101. Recommended levels and amounts
    This section establishes the aggregate levels for revenue, 
changes in revenue, total budget authority and outlays, 
surpluses or deficits, debt held by the public, and debt 
subject to the statutory limit.
    The level of revenue acts as a floor against which all 
revenue bills are measured. If a bill considered by the House 
would cause revenue to be less than the amount provided for in 
the budget resolution, it would violate section 311 of the 
Congressional Budget Act.
    The level of budget authority and outlays act as a ceiling 
against which all spending bills are measured. If a bill to be 
considered by the House would cause budget authority or outlays 
to be more than the amount provided for in the budget 
resolution, it would violate section 311 of the Congressional 
Budget Act.
    The level of surplus or deficit is the difference between 
the amount of revenue collected and the outlays expended in a 
fiscal year. It reflects only on-budget revenue and outlays and 
hence does not reflect most spending or receipts related to 
Social Security or the Postal Service, which are classified as 
off-budget.
    The levels of revenue, budget authority, outlays, and 
surplus or deficit, determine the levels of debt held by the 
public and debt subject to the statutory limit.
Section 102. Major functional categories
    Section 102 sets the budgetary levels for the functional 
categories for the budget year, fiscal year 2007, and for 
fiscal years 2008 through 2011.
    The functions are as follows:
          050  National Defense
          150  International Affairs
          250  General 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 and Services
          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
    This budget resolution includes instructions to specified 
authorizing committees of the House of Representatives, as 
authorized by section 310 of the Congressional Budget Act. The 
instructions direct each committee to submit recommendations to 
the Budget Committee making changes in law to achieve specified 
amounts of deficit reduction, generally in the form of 
reductions in mandatory spending. The Budget Committee then 
combines these recommendations into one measure. That committee 
considers whether to report the bill to the House--the bill is 
known as a reconciliation bill. Whatever its deliberation. The 
Budget Committee may not amend the combined legislation the 
committees have submitted.
    Section 201(a) directs eight committees to submit 
reconciliation legislation to the Budget Committee by 12 May 
2006. These committees are:
          Committee on Agriculture
          Committee on Armed Services
          Committee on Education and the Workforce
          Committee on Financial Services
          Committee on International Relations
          Committee on the Judiciary
          Committee on Transportation and Infrastructure
          Committee on Ways and Means
    Though each committee may decide what changes are needed to 
meet its reconciliation instruction, the savings must come from 
mandatory rather than discretionary spending. For example, 
reducing the authorization level for a program subject to 
annual discretionary appropriations does not produce any real 
deficit reduction. A committee may make whatever changes in the 
law it deems appropriate as long as it achieves the deficit 
reduction required for the period of fiscal years 2007 through 
2011.

                        Title III--Reserve Funds

Section 301. Reserve fund for the disposal of underutilized federal 
        real property
    This section provides for an increase above the levels 
provided for in the budget resolution should theGovernment 
Reform Committee report legislation that enhances the Government's real 
property disposal authority and generates discretionary savings.
    Amounts from the reserve fund may only be released, though, 
if the measure does not exceed $25 million in new budget 
authority and outlays for fiscal year 2007, and the same amount 
for the period of fiscal years 2007 through 2011.

Section 302. Reserve fund for Secure Rural Schools and Community Self-
        Determination Act reauthorization

    This section allows the Chairman of the Budget Committee to 
make changes in the aggregates or allocations in this budget 
resolution if legislation is considered by the House that 
provides for the reauthorization of the Secure Rural Schools 
and Community Self-Determination Act (Public Law 106-393). 
These changes may only occur if the legislation does not 
increase the deficit for fiscal years 2007 through 2011. The 
reserve fund is intended to provide the committees maximum 
flexibility in finding offsets for the program.

Section 303. Reserve fund for calendar year 2007 alternative minimum 
        tax relief

    This section serves as a contingency plan in case 
comprehensive, revenue-neutral tax reform--which the President 
has announced is a top priority--is not completed in time to 
apply to 2007 tax years. It accommodates legislation that holds 
individual taxpayers harmless by increasing the 2007 exemption 
amounts for the alternative minimum tax [AMT], so as to hold 
individual taxpayers harmless, but only if such legislation 
does not reduce revenue below the revenue floor set forth in 
the concurrent budget resolution for the period of fiscal years 
2007 through 2011. This is important because the Budget Act 
provides for a point of order against legislation that reduces 
revenue by an amount greater than that provided for by the 
budget resolution in either the first year or the 5-year period 
covered by the budget resolution. Under this reserve fund, 
however, a first-year (fiscal year 2007) adjustment could be 
made as long as the legislation does not reduce revenue below 
the revenue floor over five years.

Section 304. Reserve fund for the National Flood Insurance Program

    This section creates a reserve fund for the Committee on 
Financial Services for legislation that reforms the National 
Flood Insurance Program. It accomplishes two objectives: It 
allows the Chairman of the Budget Committee to (1) release up 
to $3.325 billion from the reserve so the program may liquidate 
its remaining contractual obligations resulting from the floods 
of 2005. The Chairman may only make the adjustment if (2) the 
legislation also reforms the program by establishing more 
actuarially sound rates, and also phases out subsidies on 
vacation and second homes. The legislation may make such other 
reforms as the committee decides, but those two policies are 
needed to release the amounts in the reserve.

Section 305. Reserve fund for the reform of the regulation of 
        government-sponsored enterprises

    This section establishes a reserve fund to allow 
legislation to be considered by the House, if reported by the 
Committee on Financial Resources that reforms the oversight 
entities of government sponsored enterprises, such as Fannie 
Mae and Freddie Mac. Right now those entities pay fees to 
finance certain housing programs for Federal oversight--these 
fees currently come into the Treasury as an offset to spending. 
This reserve fund allows for the consideration of legislation 
that would turn these spending receipts into revenue, which are 
different categories in the Federal budget, and for which 
different points of order are raised on the House floor. This 
reserve fund would allow the legislation to go forward even if 
it increased spending, as long as it also increased revenue by 
at least the same amount.

                      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.
    The section includes a general restriction that limits the 
programs that may receive an advance appropriation and the 
total level of such appropriations. Advance appropriations may 
be provided for the accounts in appropriation bills identified 
under the section ``Accounts Identified Advanced 
Appropriations'' in the Joint Statement of Managers on the 
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. Total advance appropriations for these accounts may 
not exceed $23.565 billion in budget authority. The amount is 
essentially the same as provided in previous budget 
resolutions, but it was adjusted to reflect advance 
appropriations provided for any year. Section 401(b) includes a 
special rule that applies in the House which permits an advance 
appropriation for fiscal year 2008 or 2009 for accounts 
identified in the account list.
    Section 401(c) defines an ``advance appropriation'' as any 
new discretionary budget authority making general 
appropriations or continuing appropriations for fiscal year 
2007 that first becomes available for any fiscal year after 
2007.
    The 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 House would then continue to consider the bill.

Section 402. Overseas contingency operations

    Section 402(a) provides a special exemption from 
Congressional budget controls for contingency operations 
related to the global war on terrorism and other unanticipated 
defense-related needs. Though $50 billion has been budgeted in 
this resolution for fiscal year 2007 for this purpose, the 
final amount has not been determined. The final amount will 
depend on the President's request and the response of the 
Appropriations Committee of the House (and the Senate). This 
section does not preclude the Department of Defense from using 
funds designated pursuant to this section anywhere in the 
world, including anywhere in the continental United States or 
insular territories, for activities in support of operations in 
the global war on terrorism.
    Section 402(b) allows the Chairman of the Budget Committee 
to appropriately budget for amounts exempt from budgetary 
controls, but still included in the aggregate levels of 
spending in the budget resolution.

Section 403. Exemption of avian bird flu response

    This section provides a special exemption from 
Congressional budget controls for spending measures to combat 
avian flu, to increase local preparedness, and to develop a 
vaccine to inoculate the American population. The exemption is 
capped at $2.3 billion--no amount designated as an avian bird 
flu expense above this level may be exempted from budgetary 
controls. Any spending above that level designated as an 
emergency counts against the non-defense emergency reserve fund 
and spending not so designated counts against the appropriate 
302(a) allocation.

Section 404. Application and effect of changes in allocations and 
        aggregates

    This section establishes procedures for making adjustments 
for 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 
enacted.
    Subsection (a)(3) provides that in order to make the 
adjustments provided for in the reserve funds, the Chairman of 
the House Budget Committee should insert these adjustments in 
the Congressional Record.
    Subsection (b): Under this subsection, any adjustments for 
these reserve funds have the same effect as if they were part 
of the original levels set forth in section 101 of this budget 
resolution. Hence, the adjusted levels are used to enforce 
points of order against legislation inconsistent with the 
allocations and aggregates included in the budget resolution.
    Subsection (c): Under this subsection, the House Budget 
Committee determines the levels and estimates used to enforce 
points of order in the House of Representatives, as is the case 
for enforcing Congressional Budget Act points of order. The 
relevant provision, section 312 of the Congressional Budget 
Act, allows the Chairman of the Budget Committee to 
authoritatively advise the Chair of the House as to the 
appropriate levels and estimates of legislation to be 
considered by the House of Representatives.

Section 405. Adjustments to reflect changes in concepts and definitions

    This section provides authority to the Chairman of the 
Budget Committee to make adjustments to levels and allocations 
in the budget resolution if legislation is enacted that 
provides for a change in concepts or definitions.

Section 406. Compliance with section 13301 of the Budget Enforcement 
        Act

    This section provides the authority to include the 
administrative expenses related to Social Security in the 
allocation for the Appropriations Committee. This language 
ensures that the Appropriations Committee retains control of 
administrative expenses through the Congressional budget 
process.

Section 407. Exercise of rulemaking powers

    This section explains that once the budget resolution is 
adopted, the provisions of the resolution are automatically 
incorporated into the rules of the House of Representatives and 
supersede other inconsistent rules.
    Each House retains its constitutional prerogative to change 
those rules at any time.

Section 408. Treatment of allocations in the House

    Under section 302(b) of the Congressional Budget Act of 
1974, the Appropriations Committee distributes to its 
subcommittees the amount of budget authority allocated to it by 
the most recently adopted budget resolution.
    This section provides the Appropriations Committee with the 
authority to make a separate suballocation for appropriations 
for legislative branch operations and to consider it a 
suballocation for all purposes under the Congressional Budget 
Act.

Section 409. Budgetary treatment of legislation reforming the National 
        Flood Insurance Program

    This section provides that for purposes of the allocations 
and aggregates in this resolution, reconciliation legislation 
that includes reforms to establish more actuarially sound rates 
on policies issued by the National Flood Insurance Program and 
to phase out flood insurance subsidies on pre-FIRM structures 
not used as primary residences shall be scored without regard 
to the obligations resulting from enactment of Public Law 109-
208. Such estimate assumes the liquidation of the National 
Flood Insurance Fund's remaining contractual obligations 
resulting from claims made as a result of floods that occurred 
in 2005.

Section 410. Adjustments for tax legislation

    Under this section, the Committee on Ways and Means may 
report legislation extending the effective date of tax 
provisions that already have expired or that expire during the 
budget window, and that have both revenue and outlay 
consequences. Once that committee reports the bill, the 
Chairman of the Committee on the Budget may make adjustments to 
accommodate the budgetary effects of the legislation as long as 
it does not cause increase the deficit for the period of fiscal 
years 2007 through 2011.
    This procedure is necessary because a number of tax relief 
policies cause incidental outlay effects in addition to their 
(somewhat larger) revenue effects. If the outlay effects of 
policies that generally are considered tax policies are treated 
similarly to other outlays, they would count against the Ways 
and Means Committee's allocation of direct spending under 
section 302(a) of the Budget Act. This section allows 
incidental outlay effects of revenue provisions to be treated 
as revenue effects, so that outlay increases will be treated as 
revenue reductions, and outlay reductions will be treated as 
revenue increases.

                    Title V--Emergency Reserve Fund


Section 501. Nondefense reserve fund for emergencies

    Subsection (a) establishes an emergency reserve fund. It 
authorizes the Chairman of the Budget Committee to release 
amounts from the reserve fund for legislation that is 
designated as an emergency. The Chairman may only release an 
amount up to the level that remains in the fund.
    Under subsection (b), when the level of the reserve fund is 
exhausted by emergency spending, it may be raised by the 
Chairman of the Committee on the Budget, but the chairman is 
not authorized to do so until he convenes a meeting of the full 
committee to vote to allow such authority.
    If a committee reports a bill or files a conference report 
that includes an emergency designation for spending, and the 
emergency spending exceeds the amount remaining in the reserve 
fund, then the Budget Committee Chairman must convene a meeting 
of the full Budget Committee to decide whether that spending 
really merits such an emergency designation. During that 
meeting, the amount by which the reserve fund may be increased 
is open for amendment--so that the committee may, effectively, 
amend the budget resolution to accommodate the additional 
spending.
    The Committee may also refuse to provide the additional 
funds if it believes the designated emergencies do not meet the 
commonly accepted definition of emergency spending. If the 
committee does not vote to authorize the additional spending, 
the Budget Committee Chairman may not revise the levels of the 
reserve fund, and the emergency designation included in a bill 
has no effect.

Section 502. Emergency criteria

    This section defines the term ``emergency'' as a situation 
that requires new budget authority and outlays to prevent the 
imminent loss of life or property or in response to the loss of 
life or property. The term ``unanticipated'' is further defined 
as sudden, urgent, unforeseen and temporary.

Section 503. Development of guidelines for application of emergency 
        definition

    This section requires the Budget Committee Chairman to work 
with the Chairman of the Appropriations Committee and the 
relevant authorizing committees to publish guidelines for the 
application of the emergency definition.

Section 504. Committee notification of emergency legislation

    Subsection (a) requires a committee to explain why a 
provision it designates as an emergency is legitimate and how 
it meets the commonly accepted criteria included in the budget 
resolution. The provisions designated as an emergency must be 
identified, but this section does not require that each 
separate provision be specifically justified individually, as 
long as the provisions in general are thoroughly explained and 
justified on the basis of the definition in section 502 and the 
accompanying criteria.
    Subsection (b) requires the committee of jurisdiction to 
insert the explanation of the emergency designation in the 
Congressional Record if the bill comes to the floor without a 
written report.

Section 505. Up-to-date tabulations

    This section requires the Committee on the Budget to keep a 
record of the amounts in the emergency reserve fund and to 
publish it in the Congressional Record.

                      Title VI--Sense of Congress


Section 601. Sense of Congress on long-term budgeting

    This section provides for a sense of Congress on long-term 
budgeting.

Section 602. Sense of Congress on closing the tax-gap to reduce the 
        deficit

    This section provides for a sense of Congress on closing 
the tax-gap to reduce the deficit.
                    The Congressional Budget Process

    The spending and revenue levels established in the budget 
resolution are executed through two parallel, but separate, 
mechanisms: allocations to the appropriations and authorizing 
committees, and reconciliation directives to the authorizing 
committees. The budget resolution may include instructions 
directing the authorizing committees to report legislation 
complying with entitlement, revenue, deficit or debt reduction 
targets. The report accompanying the budget resolution 
distributes or ``allocates'' amounts set forth in the budget 
aggregates for programs, projects and activities to the 
Appropriations Committee for annual appropriations and the 
authorizing committees if the programs have permanent or multi-
year spending authority. For fiscal year 2007 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 be provided in subsequent 
legislation reauthorizing expiring mandatory programs.
    The report accompanying the budget resolution provides 
allocations of budget authority and outlays for each of the 
authorizing committees for the budget year (fiscal year 2007), 
and the 5-year period (fiscal years 2007 through 2011). Section 
302 of the Congressional Budget Act of 1974 (as modified by the 
Balanced Budget Act of 1997) requires that allocations of 
budget authority be provided in the budget resolution for the 
first fiscal year and at least the four ensuing fiscal years 
(except for the Committee on Appropriations, which receives an 
allocation only for the budget year).

                        Appropriations Committee

    The report accompanying the budget resolution allocates a 
lump sum of discretionary budget authority assumed in the 
resolution and corresponding outlays to the Committee on 
Appropriations.
Term of the 302(a) allocation
    The allocation to the Appropriations Committee is for the 
fiscal year commencing on 1 October 2006. Unlike the 
authorizing committees, the Appropriations Committee does not 
receive a 5-year allocation of budget authority and outlays.
302(b) allocations
    Upon receiving its 302(a) allocation, the Appropriations 
Committee is required to divide the allocation among its 10 
subcommittees and, under the fiscal year 2007 budget 
resolution, legislative branch operations. 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 
budget authority along with the corresponding outlays. The 
committees may be allocated additional budget authority 
categorized as subject to discretionary action. This occurs 
when the budget resolution assumes a new or expanded mandatory 
program or a reduction in an existing program. Such spending 
authority must be provided through subsequent legislation and 
is not controlled through the annual appropriations process.
Term of the 302(a) allocation
    Because the spending authority for the authorizing 
committees is multi-year or permanent, the allocations are for 
the forthcoming budget year commencing on October 1 and a 5-
year total for fiscal years 2007 through 2011.
    Unlike the Appropriations Committee, the authorizing 
committees are provided a single allocation of new budget 
authority (divided between current law and discretionary 
action) that is not provided through annual appropriations. 
They are not required to file 302(b) allocations. Bills first 
effective in fiscal year 2007 will be measured against the 
level of the budget year, fiscal year 2007 of the budget 
resolution, and also the 5-year period of fiscal years 2007 
through 2011.

                              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:
    Section 301 allows adjustments for legislation that 
enhances the Government's real property disposal authority and 
generates discretionary savings.
    Section 302 allows adjustments for legislation for the 
reauthorization of the Secure Rural Schools and Community Self-
Determination Act.
    Section 303 allows adjustments for legislation that holds 
individual taxpayers harmless by increasing the 2007 exemption 
amounts for the alternative minimum tax.
    Section 304 allows adjustments for legislation that reforms 
the National Flood Insurance Program.
    Section 305 allows adjustments for legislation that reforms 
the oversight entities of government-sponsored enterprises, 
such as Fannie Mae and Freddie Mac.
    Most importantly, Title V creates a new emergency reserve 
fund for which adjustments may be made. It authorizes the 
Chairman of the Budget Committee to make adjustments for 
legislation that is designated as an emergency. When the level 
of the reserve fund is exhausted by emergency spending, 
adjustments may be made only if the full Budget Committee votes 
to allow such authority.

                              Enforcement

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

                             Reconciliation

    Section 310 of the Congressional Budget Act (2 U.S.C. 
Sec. 641) permits the budget resolution to provide for a 
reconciliation process. Under reconciliation, one or more 
committees are directed to make changes in the laws in their 
jurisdiction to achieve a specified increase or decrease in 
either budget authority or revenue. A 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) is considered extraneous and hence 
violates the section of the Budget Act commonly known as ``the 
Byrd Rule,'' and may be removed from the bill, unless 60 
Senators vote to waive the point of order. Reconciliation does 
not apply to discretionary spending, which is controlled by the 
Appropriations Committee. For a full description of the 
reconciliation instructions included in the budget resolution, 
see the section titled ``Reconciliation'' included in this 
report.

   TABLE 13.--ALLOCATION OF SPENDING AUTHORITY TO HOUSE APPROPRIATIONS
                                COMMITTEE
                 [By fiscal year in millions of dollars]
------------------------------------------------------------------------
                                                                  2007
------------------------------------------------------------------------
Discretionary Action:
    BA.......................................................    872,778
    OT.......................................................    963,711
Current Law Mandatory:
    BA.......................................................    573,526
    OT.......................................................    556,146
------------------------------------------------------------------------


 TABLE 14.--ALLOCATIONS OF SPENDING AUTHORITY TO HOUSE COMMITTEES OTHER
                           THAN APPROPRIATIONS
------------------------------------------------------------------------
                                                                 Total
                                                     2007    -----------
                                                               2007-2011
------------------------------------------------------------------------
Agriculture Committee:
  Current Law:
    BA..........................................      22,173      60,105
    OT..........................................      21,670      58,614
  Reconciliation:
    BA..........................................          na         -55
    OT..........................................          na         -55
  Reauthorizations:
    BA..........................................  ..........     182,060
    OT..........................................  ..........     180,329
                                                 -----------------------
    Total:
      BA........................................      22,167     242,110
      OT........................................      21,664     238,888
                                                 =======================
Armed Services Committee:
  Current Law:
    BA..........................................      96,318     520,718
    OT..........................................      96,178     520,074
  Discretionary Action:
    BA..........................................          45          45
    OT..........................................          45          45
  Reconciliation:
    BA..........................................          na        -175
    OT..........................................          na        -175
                                                 -----------------------
    Total:
      BA........................................      96,323     520,588
      OT........................................      96,183     519,944
                                                 =======================
Committee on Education and the Workforce:
  Current Law:
    BA..........................................       4,168      26,851
    OT..........................................       4,356      24,228
  Discretionary Action:
    BA..........................................  ..........  ..........
    OT..........................................           1          30
  Reconciliation:
    BA..........................................          na          -2
    OT..........................................          na      -1,323
  Reauthorizations:
    BA..........................................       2,837      15,736
    OT..........................................       2,223      14,615
                                                 -----------------------
    Total:
      BA........................................       7,004      42,585
      OT........................................       6,686      37,550
                                                 =======================
Energy and Commerce Committee:
  Current Law:
    BA..........................................     248,295   1,454,058
    OT..........................................     247,120   1,457,993
  Reauthorizations:
    BA..........................................  ..........      20,160
    OT..........................................  ..........      17,188
                                                 -----------------------
    Total:
      BA........................................     248,295   1,474,218
      OT........................................     247,120   1,475,181
                                                 =======================
Financial Services Committee:
  Current Law:
    BA..........................................       3,699      17,646
    OT..........................................         -43      -8,077
  Discretionary Action:
    BA..........................................  ..........           2
    OT..........................................  ..........           2
  Reconciliation:
    BA..........................................          na        -400
    OT..........................................          na        -400
                                                 -----------------------
    Total:
      BA........................................       3,684      17,248
      OT........................................         -58      -8,475
                                                 =======================
Government Reform Committee:
  Current Law:
    BA..........................................      77,836     421,502
    OT..........................................      74,433     403,135
Committee on House Administration:
  Current Law:
    BA..........................................          72         367
    OT..........................................          47         368
Committee on Homeland Security:
  Current Law:
    BA..........................................       1,408       6,626
    OT..........................................       1,339       7,067
International Relations Committee:
  Current Law:
    BA..........................................      11,971      65,229
    OT..........................................      11,950      61,989
  Discretionary Action:
    BA..........................................           1           5
    OT..........................................           1           5
  Reconciliation:
    BA..........................................          na        -250
    OT..........................................          na        -250
                                                 -----------------------
    Total:
      BA........................................      11,952      64,984
      OT........................................      11,931      61,744
                                                 =======================
Judiciary Committee:
  Current Law:
    BA..........................................       6,884      28,747
    OT..........................................       6,009      28,628
  Discretionary Action:
    BA..........................................          19         116
    OT..........................................          16         113
  Reconciliation:
    BA..........................................          na        -500
    OT..........................................          na        -500
                                                 -----------------------
    Total:
      BA........................................       6,713      28,363
      OT........................................       5,835      28,241
                                                 =======================
Resources Committee:
  Current Law:
    BA..........................................       7,245      31,022
    OT..........................................       6,122      28,838
  Discretionary Action:
    BA..........................................  ..........           6
    OT..........................................  ..........           6
                                                 -----------------------
    Total:
      BA........................................       7,245      31,028
      OT........................................       6,122      28,844
                                                 =======================
Science Committee:
  Current Law:
    BA..........................................         115         598
    OT..........................................          74         507
Transportation and Infrastructure Committee:
  Current Law:
    BA..........................................      67,835     223,730
    OT..........................................      14,573      75,994
  Discretionary Action:
    BA..........................................          13          22
    OT..........................................          13          22
  Reconciliation:
    BA..........................................          na         -50
    OT..........................................          na         -50
  Reauthorizations:
    BA..........................................  ..........     101,254
    OT..........................................  ..........         614
                                                 -----------------------
    Total:
      BA........................................      67,838     324,956
      OT........................................      14,576      76,580
                                                 =======================
Veterans' Affairs Committee:
  Current Law:
    BA..........................................       1,236       6,044
    OT..........................................       1,290       6,530
  Reauthorizations:
    BA..........................................         573      10,607
    OT..........................................         530      10,357
                                                 -----------------------
    Total:
      BA........................................       1,809      16,651
      OT........................................       1,820      16,887
                                                 =======================
Ways and Means Committee:
  Current Law:
    BA..........................................     786,683   4,388,001
    OT..........................................     788,876   4,398,454
  Reconciliation:
    BA..........................................          na      -4,000
    OT..........................................          na      -4,000
  Reauthorizations:
    BA..........................................         305      24,869
    OT..........................................          82      18,427
                                                 -----------------------
    Total:
      BA........................................     786,988   4,408,870
      OT........................................     788,958   4,412,881
------------------------------------------------------------------------
na = Not applicable because amounts are reconciled over 5 years.

                    Enforcing the Budget Resolution

    The budget resolution is more than a planning document. The 
allocations of spending authority and the aggregate levels of 
both spending authority and revenues are binding on the 
Congress when it considers subsequent spending and tax 
legislation. Legislation breaching the levels set forth in the 
budget resolution is subject to points of order on the floor of 
the House of Representatives.
    Any Member of the House may raise a point of order against 
any tax or spending bill or breaches the allocations and 
aggregate spending levels established in the budget resolution. 
If the point of order is sustained, the House is precluded from 
further consideration of the measure.
    Though these points of order are important for budgetary 
discipline, in the House they may be waived by the resolution 
which structures rules for debate on legislation and 
appropriations measures that come before it for consideration. 
The House Budget Committee believes it is important to augment 
these congressional enforcement tools with statutory controls. 
Such controls were in place as part of the Budget Enforcement 
Act of 1997 (BEA), which expired at the end of 2002.
    The major Budget Act requirements are as follows:

                             Section 302(f)

    Section 302 of the Congressional Budget Act prohibits the 
consideration of legislation that exceeds a committee's 
allocation of new budget authority. Section 302(f) applies to 
the budget year and the 5-year total for authorizing 
committees. For appropriations bills, however, it applies only 
to the budget year. The budget year is the first fiscal year to 
which a concurrent resolution on the budget applies. An 
exception is provided for legislation that is offset by tax 
increases above and beyond those required by the budget 
resolution.

                             Section 303(a)

    This section prohibits the consideration of spending and 
tax legislation before the House has passed a budget 
resolution. Section 303(a) does not apply to budget authority 
and revenue provisions first effective in a year following the 
first fiscal year to which a budget resolution applies, or to 
appropriation bills after May 15.

                   Sections 308(b)(2), 311(c) and 312

    Under sections 308(b)(2), 311(c) and 312 of the Budget Act, 
the Budget Committee advises the presiding officer on the 
application of points of order against specific legislation 
pending before the House. House Budget Committee rules also 
authorize the chairman to poll the committee on recommendations 
to the Rules Committee to enforce the Budget Act by not waiving 
points of order against specific legislation.

                           Section 311(a)(1)

    Section 311(a)(1) prohibits the consideration of 
legislation that exceeds the ceiling on budget authority and 
outlays or reduces revenue below the revenue floor. Section 
311(a)(1) applies to the budget year and 5-year total for bills 
increasing revenue, but only to the budget year for 
appropriations bills. Section 311 does not apply to spending 
bills that do not breach a committee's 302(a) allocations.

                             Section 401(a)

    This section of the Congressional Budget Act prohibits the 
consideration of legislation providing borrowing authority, new 
credit authority, or contract authority not subject to 
discretionary appropriations.

                           Section 401(b)(1)

    This section prohibits the consideration of legislation 
creating new entitlement authority in the year preceding the 
budget year. It does not apply to trust funds primarily 
financed by dedicated taxes.

Title V of the Concurrent Resolution on the Budget for Fiscal Year 2007

    Sections 501 through 505 of the budget resolution for 
fiscal year 2007 set up a significant new enforcement mechanism 
to better budget for emergency spending. In previous years, the 
only thing a committee needed to escape budgetary controls was 
to simply designate spending as an emergency and no points of 
order could be raised against it.
    This budget resolution, though, puts in place of that 
system a reserve fund. This holds in reserve an amount, 
calculated by averaging emergency spending from the prior 10 
years (after eliminating the extraordinarily high and low 
years).
    This reserve fund can be tapped for emergencies as they 
arise, and the Chairman of the Committee on the Budget will 
adjust the allocation to a committee after releasing funds from 
the reserve. When the reserve is exhausted, however, no more 
adjustments can be made unless the Budget Committee votes to 
authorize the chairman to raise the appropriate budget levels 
to accommodate the additional emergency spending.
                         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, 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 2007.
    On 29 March 2006, the committee met in open session, a 
quorum being present.
    Chairman Nussle asked unanimous consent that he be 
authorized, consistent with clause 4 of House Rule XVI, to 
declare a recess at any time during the committee meeting; and, 
in addition, that the chairman and the ranking member be 
allotted 35 minutes in addition to the opening statements to 
control the time and to allow members to submit written 
statements for the record.
    There was no objection to the unanimous consent request.
    Mr. Baird moved to adjourn.
    By voice vote, the motion to adjourn was not agreed to.
    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 committee adopted and ordered reported the Concurrent 
Resolution on the Budget for Fiscal Year 2007. The following 
votes were taken by the committee:
    1. An amendment was offered by Mr. Bradley to increase 
function 700 to reflect higher funding for discretionary 
Veterans' programs by the following amounts: budget authority--
$795,000,000 for fiscal year 2007, $795,000,000 for fiscal year 
2008, $795,000,000 for fiscal year 2009, $795,000,000 for 
fiscal year 2010, $795,000,000 for fiscal year 2011; outlays--
$716,000,000 for fiscal year 2007, $787,000,000 for fiscal year 
2008, $790,000,000 for fiscal year 2009, $791,000,000 for 
fiscal year 2010, $791,000,000 for fiscal year 2011.
    The amendment also decreased funding in function 150 to 
reflect lower funding for international affairs programs by the 
following amounts: budget authority--$795,000,000 for fiscal 
year 2007, $795,000,000 for fiscal year 2008, $795,000,000 for 
fiscal year 2009, $795,000,000 for fiscal year 2010, 
$795,000,000 for fiscal year 2011; outlays--$59,000,000 for 
fiscal year 2007, $259,000,000 for fiscal year 2008, 
$429,000,000 for fiscal year 2009, $509,000,000 for fiscal year 
2010, $552,000,000 for fiscal year 2011.
    The amendment was agreed to by voice vote; unanimous.
    2. An amendment offered by Representatives Neal, Baird, and 
Allen. The amendment strikes all after the resolving clause and 
substitutes the Congressional Budget Office's re-estimate of 
the President's 2007 budget.
    The amendment was not agreed to by a roll call vote of 0 
ayes and 37 noes.

                          ROLLCALL VOTE NO. 1


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,         ..........      X      ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS          ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER          ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON       ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ        ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    3. An amendment offered by Representatives Spratt, 
Schwartz, Edwards, Capps, Cuellar, and Ford to increase 
function 450 to reflect higher funding for Port Security Grants 
by the following amounts: budget authority--$500,000,000 for 
fiscal year 2007; outlays--$50,000,000 for fiscal year 2007, 
$185,000,000 for fiscal year2008, $155,000,000 for fiscal year 
2009, $110,000,000 for fiscal year 2010.
    The amendment also increased funding in function 750 to 
reflect higher funding for cargo security initiatives by the 
following amounts: budget authority--$500,000,000 for fiscal 
year 2007; outlays--$316,000,000 for fiscal year 2007, 
$162,000,000 for fiscal year 2008, $22,000,000 for fiscal year 
2009.
    The amendment made adjustments to aggregate revenue to 
ensure the amendment was deficit neutral. It authorized 
adjustments to function 800 and to any relevant spending levels 
and allocations to reduce the size of the tax gap.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy: increase function 
450 by $500 million for port security grants; increase 
discretionary funding for function 750 by $170 million for 
Container Security Initiative; increase discretionary funding 
for function 750 by $50 million for cargo security initiatives; 
and increase discretionary funding for Function 750 by $280 
million increase for procurement of cargo security items; and, 
authorize the chairman to make adjustments to Function 800 and 
any relevant spending levels and allocations to reduce the size 
of the tax gap.
    The amendment was not agreed to by a roll call vote of 15 
ayes and 21 noes.

                          ROLLCALL VOTE NO. 2


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........  ..........  ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    4. An amendment offered by Representatives Moore, Baird, 
Ford, Cooper, Case, Jefferson, Allen, Cuellar, and Kind to 
restore fiscal responsibility by instituting a PAYGO point of 
order in the House, striking Rule XXVII (the Gephardt Rule) 
from the House of Representatives rules, and not allowing 
increases to the deficit through reconciliation.
    The amendment was not agreed to by a roll call vote of 15 
ayes and 21 noes.

                          ROLLCALL VOTE NO. 3


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........  ..........  ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    5. An amendment offered by Representatives DeLauro, Moore, 
Edwards, Capps, Jefferson, Allen, Cuellar, and Kind increased 
the funding for Education, Health, Community Services, and Job 
Training by $7,000,000,000 from $23,565,000,000 to 
$30,565,000,000 in accordance with the Specter-Harkin Amendment 
in the Senate-passed fiscal year 2007 budget (S. Con. Res. 83).
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy: the resolution 
provides an additional $7 billion in advance 2008 
appropriations for education, health, community services and 
job training and rejects the President's decreases in these 
areas.
    The amendment was not agreed to by a roll call vote of 14 
ayes and 22 noes.

                          ROLLCALL VOTE NO. 4


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    6. An amendment offered by Representatives Neal, Moore, 
Allen, Capps, and Davis to allow the negotiation of lower 
Medicare drug prices.
    The amendment establishes a reserve fund for the 
negotiation, by the Secretary of Health and Human Services, of 
the best possible price for prescription drugs provided by part 
D of title XVIII of the Social Security Act.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy: the resolution 
will include a reserve fund for the savings realized by the 
negotiation of lower drug prices and such savings must be spent 
to improve the Medicare Part D drug benefit or deficit 
reduction.
    The amendment was not agreed to by a roll call vote of 14 
ayes and 22 noes.

                          ROLLCALL VOTE NO. 5


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON       ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    7. An amendment offered by Representatives Edwards, Ford, 
Jefferson, Allen, Cuellar, Schwartz and Kind to eliminate new 
health care fees for military retirees.
    The amendment increases budget authority and outlays for 
function 050 by the following amounts: budget authority--
$735,000,000 for fiscal year 2007; outlays--$592,000,000 for 
fiscal year 2007, $121,000,000 for fiscal year 2008, 
$13,000,000 for fiscal year 2009, $4,000,000 for fiscal year 
2010, $2,000,000 for fiscal year 2011.
    The amendment made adjustments to aggregate revenue to 
ensure the amendment was deficit neutral. It authorized 
adjustments to function 800 and to any relevant spending levels 
and allocations to reduce the size of the tax gap.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy: increase 
discretionary funding for function 050 by $735 million above 
the amount requested in the President's budget, and authorize 
the chairman to make adjustments to function 800, and any 
relevant spending levels and allocations to reduce the size of 
the tax gap.
    The amendment was not agreed to by a roll call vote of 15 
ayes and 22 noes.

                          ROLLCALL VOTE NO. 6


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON       ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    8. An amendment offered by Representatives Davis, DeLauro, 
Neal, Allen, and Cuellar to support economic security increased 
budget authority and outlays for function 450 by the following 
amounts: budget authority--$421,000,000 for fiscal year 2007; 
outlays--$194,000,000 for fiscal year 2007, $140,000,000 for 
fiscal year 2008, $87,000,000 for fiscal year 2009.
    The amendment also increased budget authority and outlays 
for function 600 by the following amounts: budget authority--
$1,682,000,000 for fiscal year 2007; outlays--$1,288,000,000 
for fiscal year 2007, $361,000,000 for fiscal year 2008, 
$33,000,000 for fiscal year 2009.
    The amendment made adjustments to aggregate revenue to 
ensure the amendment was deficit neutral. It authorized 
adjustments to function 800 and to any relevant spending levels 
and allocations to reduce the size of the tax gap.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy, increased funding 
for: the Child Care and Development Fund, LIHEAP, the Commodity 
Supplemental Food Program, and Community and Development Block 
Grant programs; and no changes to the Food Stamp Program that 
reduce spending or restrict eligibility for benefits. It also 
assumes authorization for the chairman to make appropriate 
adjustments toFunction 800 and to any relevant spending levels 
and allocations to reduce the tax gap.
    The amendment was not agreed to by a roll call vote of 15 
ayes and 18 noes.

                          ROLLCALL VOTE NO. 7


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........  ..........  ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........  ..........  ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS          ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........  ..........  ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON       ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........  ..........  ............  Ms. McKINNEY             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    9. An amendment offered by Representatives Allen, Neal, 
Ford, Capps, Davis, Cuellar, and Schwartz to establish a 
reserve fund to address Medicare Advantage overpayments and 
improve the Medicare prescription drug benefit.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy: create a reserve 
fund allowing for reductions in overpayments under Medicare 
part C, provided such funds are used to strengthen and improve 
the Medicare prescription drug benefit.
    The amendment was not agreed to by a roll call vote of 17 
ayes and 21 noes.

                          ROLLCALL VOTE NO. 8


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........  ..........  ............  Ms. McKINNEY             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    10. An amendment offered by Representatives Capps, Allen, 
Baird, Jefferson, Kind, and Schwartz to increase funding for 
environmental protection and conservation increased budget 
authority and outlays for function 300 by the following 
amounts: budget authority--$1,002,000,000 for fiscal year 2007; 
outlays--$508,000,000 for fiscal year 2007, $237,000,000 for 
fiscal year 2008, $98,000,000 for fiscal year 2009, $96,000,000 
for fiscal 2010, $46,000,000 for fiscal 2011.
    The amendment made adjustments to aggregate revenue to 
ensure the amendment was deficit neutral. It authorized 
adjustments to function 800 and to any relevant spending levels 
and allocations to reduce the size of the tax gap.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy: a level of funding 
equal to the 2006 regular enacted level for the Environmental 
Protection Agency, the Army Corp of Engineers, and the National 
Park Service; and authorization for the chairman to make 
appropriate adjustments to Function 800 and to any relevant 
spending levels and allocations to reduce the tax gap.
    The amendment was not agreed to by a roll call vote of 16 
ayes and 22 noes.

                          ROLLCALL VOTE NO. 9


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    11. An amendment offered by Representatives Schwartz, Ford, 
Edwards, Capps, Allen, Baird, and Cuellar increasing funding 
for Homeland Security budget authority and outlays in function 
450 by the following amounts: budget authority--$421,000,000 
for fiscalyear 2007, $701,000,000 for fiscal year 2008; 
outlays--$42,000,000 for fiscal year 2007, $226,000,000 for fiscal year 
2008, $390,000,000 for fiscal year 2009, $310,000,000 for fiscal 2010, 
$154,000,000 for fiscal 2011.
    The amendment also would increase budget authority and 
outlays for function 050 by the following amounts for funding 
for the Cooperative Threat Reduction Program and Army National 
Guard: budget authority--$828,000,000 for fiscal year 2007; 
outlays--$496,000,000 for fiscal year 2007, $205,000,000 for 
fiscal year 2008, $83,000,000 for fiscal year 2009, $23,000,000 
for fiscal year 2010, $10,000,000 for fiscal year 2011.
    The amendment also would increase budget authority and 
outlays for function 750 by the following amounts for funding 
of homeland security programs, such as the State Criminal Alien 
Assistance program and the Byrne Justice Assistance Grant 
Program: budget authority--$67,000,000 for fiscal year 2007; 
outlays--$15,000,000 for fiscal year 2007, $20,000,000 for 
fiscal year 2008, $13,000,000 for fiscal year 2009, $10,000,000 
for fiscal year 2010, $9,000,000 for fiscal year 2011.
    The amendment made adjustments to aggregate revenue to 
ensure the amendment was deficit neutral. It authorized 
adjustments to function 800 and to any relevant spending levels 
and allocations to reduce the size of the tax gap.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy: increased function 
450 to provide funding for first responders; increased function 
050 to provide funding for the Cooperative Threat Reduction 
Program and Army National Guard troop strength; and increase 
function 750 to provide funding for homeland security programs. 
It also assumes authorization for the chairman to make 
appropriate adjustments to Function 800 and to any relevant 
spending levels and allocations to reduce the tax gap.
    The amendment was not agreed to by a roll call vote of 16 
ayes and 21 noes.

                          ROLLCALL VOTE NO. 10


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........  ..........  ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    12. An amendment offered by Representative Edwards 
rejecting cuts to veterans' health care increased budget 
authority and outlays for function 700 by the following 
amounts: budget authority--$59,000,000 for fiscal year 2008, 
$1,426,000,000 for fiscal year 2009, $3,116,000,000 for fiscal 
year 2010, $3,994,000,000 for fiscal year 2011; outlays--
$53,000,000 for fiscal year 2008, $1,289,000,000 for fiscal 
year 2009, $2,933,000,000 for fiscal year 2010, $3,881,000,000 
for fiscal 2011.
    The amendment made adjustments to aggregate revenue to 
ensure the amendment was deficit neutral. It authorized 
adjustments to function 800 and to any relevant spending levels 
and allocations to reduce the size of the tax gap.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy: increased funding 
for Function 700 above the amounts requested in the President's 
budget for fiscal years 2008 through 2011. It also assumes 
authorization for the chairman to make appropriate adjustments 
to Function 800 and to any relevant spending levels and 
allocations to reduce the tax gap.
    The amendment was not agreed to by a roll call vote of 16 
ayes and 22 noes.

                          ROLLCALL VOTE NO. 11


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    13. An amendment offered by Representative DeLauro 
providing assistance to hurricane Katrina victims increased 
budget authority and outlays for function 600 by the following 
amounts: budget authority--$145,000,000 for fiscal year 2007, 
$129,000,000 for fiscal year 2008; outlays--$145,000,000 for 
fiscal year 2007, $129,000,000 for fiscal year 2008.
    The amendment made adjustments to aggregate revenue to 
ensure the amendment was deficit neutral. It authorized 
adjustments to function 800 and to any relevant spending levels 
and allocations to reduce the size of the tax gap.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy: victims of 
Hurricane Katrina shall be able to receive a tax refund from 
the child tax credit in 2006 and 2007 and to claim the 
refundable portion of the child tax credit beginning with their 
first dollar of earned income. It also assumes authorization 
for the chairman to make appropriate adjustments to Function 
800 and to any relevant spending levels and allocations to 
reduce the tax gap.
    The amendment was not agreed to by a roll call vote of 14 
ayes and 22 noes.

                          ROLLCALL VOTE NO. 12


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    14. An amendment offered by Representative Ford striking 
funding from the Base Closure Account decreases budget 
authority and outlays for function 050 by the following 
amounts: budget authority--$5,626,000,000 for fiscal year 2007; 
outlays--$935,000,000 for fiscal year 2007.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy: strike $5.6 
billion from the Base Closure Account.
    The amendment was not agreed to by a roll call vote of 11 
ayes and 26 noes.

                          ROLLCALL VOTE NO. 13


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,         ..........      X      ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........  ..........  ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    15. An amendment offered by Representative Baird extending 
the State and local sales tax deductions reduced revenue by the 
following amounts: revenue--$2,600,000,000 for fiscal year 
2007, $2,700,000,000 for fiscal year 2008, $2,900,000,000 for 
fiscal year 2009, $3,500,000,000 for fiscal year 2010, 
$4,200,000,000 for fiscal year 2011.
    The amendment made adjustments to aggregate revenue to 
ensure the amendment was deficit neutral. It authorized 
adjustments to function 800 and to any relevant spending levels 
and allocations to reduce the size of the tax gap.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy: the revenue 
decreases provide sales tax deduction for residents of 
Washington, Florida, Texas, South Dakota, Tennessee, Nevada, 
and Wyoming. It also assumes authorization for the chairman to 
make appropriate adjustments to Function 800 and to any 
relevant spending levels and allocations to reduce the tax gap.
    The amendment was not agreed to by a roll call vote of 16 
ayes and 22 noes.

                          ROLLCALL VOTE NO. 14


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    16. An amendment offered by Mr. Cooper provided for a sense 
of Congress that the determination of the congressional budget 
for the United States and the President's budget request should 
include consideration of the financial report of the U.S. 
Government, especially information regarding the net operating 
cost, financial position, and long term liabilities.
    The amendment was agreed to by voice vote.
    17. An amendment offered by Representative Allen increased 
funding for small businesses by increasing budget authority and 
outlays for function 370 by the following amounts: budget 
authority--$237,000,000 for fiscal year 2007; outlays--
$79,000,000 for fiscal year 2007, $93,000,000 for fiscal year 
2008, $42,000,000 for fiscal year 2009, $15,000,000 for fiscal 
year 2010, $4,000,000 for fiscal year 2011.
    The amendment reduced budget authority and outlays for 
function 270, reflecting the elimination of funding for the 
Global Nuclear Energy Partnership, by the following amounts: 
budget authority--$250,000,000 for fiscal year 2007; outlays--
$113,000,000 for fiscal year 2007, $100,000,000 for fiscal year 
2008, $25,000,000 for fiscal year 2009, $12,000,000 for fiscal 
year 2010.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment made all necessary and conforming changes to 
the committee report to reflect the following assumptions in 
policy: reducing fees for the Small Business Administration 
[SBA]; providing funding for the SBA's Microloan Technical 
Assistance program at the 2006 level; providing funding for 
SBA's Technical Assistance Program at the 2006 level; providing 
funding for the SBA's HUBZones Program at the 2006 level; 
providing funding for the SBA's Native American Outreach 
Program at the 2006 level; providing funding for the SBA's 
PRIME Technical Assistance program at the 2006 level; providing 
funding for the SBA's SBDC program at the 2006 level; providing 
funding for the SBA's Women's Business Centers Grants at the 
2006 level; providing $105 million for the Manufacturing 
Extension Partnership for 2007; rejecting the President's 
proposal to eliminate the Advanced Technology Program and 
maintaining funding at the 2006 level; and eliminating funding 
for 2007 for the Global Nuclear Energy Partnership.
    The amendment was not agreed to by a roll call vote of 17 
ayes and 21 noes.

                          ROLLCALL VOTE NO. 15


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER             X      ..........  ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    18. An amendment offered by Representative Kind for 
protecting health care in rural America by providing Medicare 
physician reimbursement and funding for rural communities and 
other providers. The amendment increased budget authority and 
outlays for function 550 by the following amounts: budget 
authority--$133,000,000 for fiscal year 2007; outlays--
$46,000,000 for fiscal year 2007, $60,000,000 for fiscal year 
2008, $18,000,000 for fiscal year 2009, $6,000,000 for fiscal 
year 2010, $2,000,000 for fiscal year 2011.
    The amendment increased budget authority and outlays for 
function 570 by the following amounts: budget authority--
$354,000,000 for fiscal year 2007, $241,000,000 for fiscal year 
2008; outlays--$354,000,000 for fiscal year 2007, $241,000,000 
for fiscal year 2008.
    The amendment made adjustments to aggregate revenue to 
ensure the amendment was deficit neutral. It authorized 
adjustments to function 800 and to any relevant spending levels 
and allocations to reduce the size of the tax gap.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy: does not assume 
any cuts below the 2006 enacted level to discretionary Rural 
Health Activities; assumes increases in Medicare funding to 
extend the increase in the work geographic index under the 
physician fee schedule to 1.0 for any locality for which the 
work geographic index is less than 1.0 for calendar year 2006 
furnished services; assumes extension of the 2-percent increase 
in the update for rural ambulance service under Medicare for 
calendar year 2007, and assumes extension of the 5-percent 
additional payment for Medicare home health services furnished 
to beneficiaries residing in rural areas.
    The amendment was not agreed to by a roll call vote of 16 
ayes and 22 noes.

                          ROLLCALL VOTE NO. 16


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    19. An amendment offered by Representative Davis preventing 
harmful cuts to children's hospitals increased budget authority 
and outlays for function 550 by the following amounts: budget 
authority--$198,000,000 for fiscal year 2007; outlays--
$68,000,000 for fiscal year 2007, $90,000,000 for fiscal year 
2008, $26,000,000 for fiscal year 2009, $8,000,000 for fiscal 
year 2010, $2,000,000 for fiscal year 2011.
    The amendment made adjustments to aggregate revenue to 
ensure the amendment was deficit neutral. It authorized 
adjustments to function 800 and to any relevant spending levels 
and allocations to reduce the size of the tax gap.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment directed the committee report be modified to 
reflect the following assumptions in policy: assume funding for 
Children's Hospitals Graduate Medical Education at the 2006 
enacted level.
    The amendment was withdrawn and the report language was 
included in lieu thereof.
    20. An amendment offered by Representative Cooper to add 
the following section: Prohibition against consideration of 
appropriation measures if funds for earmarks are included only 
in accompanying reports.
    The amendment stated: (1) earmarks must be included in a 
measure, not solely listed in a committee or conference report 
accompanying the measure; (2) an earmark is defined as a 
provision that specifies the identity of a private business, 
State, territory or locality, but not any Federal agency, to 
receive a grant, loan, loan guarantee, or contract; (3) the 
House would be out of order to consider any rule or waiver of 
paragraph (1) to any measure containing discretionary spending.
    The amendment was defeated on a voice vote.
    21. An amendment was offered by Representative Cuellar as a 
sense of Congress regarding Performance-Based Budgeting.
    The amendment was withdrawn and by unanimous consent report 
language was agreed upon on the matter for Representatives 
Cuellar and Diaz-Balart.
    22. An amendment offered by Representative DeLauro 
increasing rural communities' budget authority and outlays for 
function 450 by the following amounts: budget authority--
$220,000,000 for fiscal year 2007; outlays--$14,400,000 for 
fiscal year 2007, $56,600,000 for fiscal year 2008, $65,700,000 
for fiscal year 2009, $38,400,000 for fiscal year 2010, 
$22,900,000 for fiscal year 2011 ($22,000,000 in 2007 budget 
authority would not be spent until fiscal year 2012).
    The amendment increased budget authority and outlays for 
function 600 by the following amounts: budget authority--
$180,000,000 for fiscal year 2006; outlays--$12,900,000 for 
fiscal year 2006, $46,000,000 for fiscal year 2007, $48,400,000 
for fiscal year 2008, $46,600,000 for fiscal year 2009, 
$26,000,000 for fiscal year 2010.
    The amendment made adjustments to aggregate revenue to 
ensure the amendment was deficit neutral. It authorized 
adjustments to function 800 and to any relevant spending levels 
and allocations to reduce the size of the tax gap.
    The amendment made all necessary and conforming changes to 
the Chairman's Mark.
    The amendment was not agreed to by a roll call vote of 16 
ayes and 22 noes.

                          ROLLCALL VOTE NO. 17


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)       ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X      ............  Mr. NEAL                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X      ............  Ms. DeLAURO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER          ..........       X      ............  Mr. EDWARDS              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF         ..........       X      ............  Mr. FORD                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER          ..........       X      ............  Mrs. CAPPS               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT         ..........       X      ............  Mr. BAIRD                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT         ..........       X      ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER        ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART     ..........       X      ............  Mr. JEFFERSON            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING      ..........       X      ............  Mr. ALLEN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN         ..........       X      ............  Mr. CASE                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS        ..........       X      ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)       ..........       X      ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON         ..........       X      ............  Ms. SCHWARTZ             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY         ..........       X      ............  Mr. KIND                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. MACK            ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA         ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL        ..........       X
----------------------------------------------------------------------------------------------------------------

    23. An amendment offered by Representative McCotter added 
the following section: It is the sense of Congress that any 
revenue increases achieved through recovery of taxes legally 
owed to the U.S. Treasury but not actually paid--the so-called 
``tax gap''--shall be dedicated entirely to reducing the 
deficit and the accumulated debt, and not to financing 
additional spending.
    The amendment was agreed to by a roll call vote of 24 ayes 
and 13 noes.

                          ROLLCALL VOTE NO. 18


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,              X      ..........  ............  Mr. SPRATT,         ..........      X      ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)            X      ..........  ............  Mr. MOORE           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW             X      ..........  ............  Mr. NEAL            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM               X      ..........  ............  Ms. DeLAURO         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER               X      ..........  ............  Mr. EDWARDS         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF              X      ..........  ............  Mr. FORD            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER               X      ..........  ............  Mrs. CAPPS          ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT              X      ..........  ............  Mr. BAIRD           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT              X      ..........  ............  Mr. COOPER               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER             X      ..........  ............  Mr. DAVIS           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART          X      ..........  ............  Mr. JEFFERSON       ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING           X      ..........  ............  Mr. ALLEN           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN              X      ..........  ............  Mr. CASE            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS             X      ..........  ............  Ms. McKINNEY        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)            X      ..........  ............  Mr. CUELLAR              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON              X      ..........  ............  Ms. SCHWARTZ        ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY              X      ..........  ............  Mr. KIND            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY              X      ..........
----------------------------------------------------------------------------------------------------------------
Mr. MACK                 X      ..........
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY              X      ..........
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA              X      ..........
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL             X      ..........
----------------------------------------------------------------------------------------------------------------

    Mr. Ryun moved that the committee adopt the aggregates, 
functional totals, and other matters, as amended.
    The motion was agreed to by voice vote.
    Chairman Nussle called up the Concurrent Resolution of the 
Budget for Fiscal Year 2007 incorporating aggregates, function 
totals, and other appropriate matter as previously agreed.
    Mr. Ryun moved that the committee order the Concurrent 
Resolution reported with a favorable recommendation and that 
the Concurrent Resolution do pass.
    The motion offered by Mr. Ryun was agreed to by a roll call 
vote of 22 ayes and 17 noes.

                          ROLLCALL VOTE NO. 19


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,              X      ..........  ............  Mr. SPRATT,         ..........      X      ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. RYUN (KS)            X      ..........  ............  Mr. MOORE           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW             X      ..........  ............  Mr. NEAL            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM               X      ..........  ............  Ms. DeLAURO         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. WICKER               X      ..........  ............  Mr. EDWARDS         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. HULSHOF              X      ..........  ............  Mr. FORD            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. BONNER               X      ..........  ............  Mrs. CAPPS          ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. GARRETT              X      ..........  ............  Mr. BAIRD           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. BARRETT              X      ..........  ............  Mr. COOPER          ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. McCOTTER             X      ..........  ............  Mr. DAVIS           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. DIAZ-BALART          X      ..........  ............  Mr. JEFFERSON       ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. HENSARLING           X      ..........  ............  Mr. ALLEN           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. LUNGREN              X      ..........  ............  Mr. CASE            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. SESSIONS             X      ..........  ............  Ms. McKINNEY        ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYAN (WI)            X      ..........  ............  Mr. CUELLAR         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. SIMPSON              X      ..........  ............  Ms. SCHWARTZ        ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. BRADLEY              X      ..........  ............  Mr. KIND            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. McHENRY              X      ..........
----------------------------------------------------------------------------------------------------------------
Mr. MACK                 X      ..........
----------------------------------------------------------------------------------------------------------------
Mr. CONAWAY              X      ..........
----------------------------------------------------------------------------------------------------------------
Mr. CHOCOLA              X      ..........
----------------------------------------------------------------------------------------------------------------
Mr. CAMPBELL             X      ..........
----------------------------------------------------------------------------------------------------------------

    Mr. Ryun asked unanimous consent that the Chairman be 
authorized to make a motion to go to conference pursuant to 
clause 1 of House Rule XXII and that staff be authorized to 
make any necessary technical and conforming corrections in the 
resolution, and any committee amendments, and to calculate the 
remaining elements required on the resolution, prior to filing 
the resolution.
 Public Debt: Amending the Statutory Limit Pursuant to House Rule XXVII

    The adoption of a conference agreement by the two Houses on 
a concurrent resolution of the budget would result in the 
engrossment of a House Joint Resolution adjusting the level of 
the statutory limit on the public debt pursuant to House Rule 
XXVII, in consonance with clause 3 of that rule. This 
resolution contemplates a joint resolution of the following 
form:

          Resolved, by the Senate and the House of 
        Representatives of the United States of America in 
        Congress assembled, That subsection (b) of section 3101 
        of title 31, United States Code, is amended by striking 
        out the dollar limitation contained in such subsection 
        and inserting in lieu thereof $9,618,000,000,000.

    If the joint resolution is enacted to raise the debt limit 
to the level contemplated by this resolution, the limit will be 
increased from $8.965 trillion to $9.618 trillion, an increase 
of $653 billion.
                       Additional Report Language

                          Oxygen Fuel Systems

    The committee recognizes the importance of oxygen fuel 
systems as part of the Department of Energy's Clean Coal 
Initiative. Coal fired power plants account for over half of 
our electric generation and the deployment of oxygen fuel 
systems will greatly reduce power plant emissions and will meet 
the administration's emissions targets of 2020 immediately. Key 
to this effort will be the establishment of an oxygen fuel 
program office within the Department of Energy as authorized by 
section 1407 of the recently-passed Energy Bill.

                             Coal Research

    Coal is the United States' most abundant domestic energy 
source and a primary fuel for generating electricity. The 
committee recognizes the importance of coal and is supportive 
of the Clean Coal Power Initiative and the coal research, 
development and demonstration projects it supports.

               Bonneville Power Marketing Administration

    This resolution does not specifically assume the use of 
Bonneville Power Administration [BPA] secondary market revenues 
in excess of a threshold to be set by the administration for 
advance amortization payments on BPA bond obligations, as 
proposed in the administration budget.

             Children's Hospital Graduate Medical Education

    The committee recognizes the important role that the 
nation's independent children's hospitals play in providing 
high quality health care to all children. Children's hospitals 
treat a disproportionately poor and uninsured population, and 
provide the majority of highly specialized pediatric inpatient 
care to children with complex and chronic conditions. They are 
the pediatric health care safety net for low-income children in 
their communities and regions, with an average of 50 percent or 
more of their care devoted to children in Medicaid. Children's 
hospitals train 30 percent of all pediatricians in the United 
States, half of the nation's pediatric sub-specialists and the 
majority of pediatric researchers. The Children's Hospitals 
Graduate Medical Education program [CHGME] was established by 
Congress in 1999 to provide equitable GME support to 
freestanding children's teaching hospitals. The committee 
recognizes the importance of the CHGME and recommends adequate 
funding to sustain the current program.
    The Children's Hospitals Graduate Medical Education [GME] 
program is an important source of funding for freestanding 
children's hospitals. In determining the appropriate level of 
funding for fiscal year 2007, the committee believes Congress 
should consider both the number of uninsured patients whose 
care is partially funded through the GME program and the need 
for continued funding of physician training through the GME 
program.

            Importance of the AIDS Drug Assistance Programs

    AIDS Drug Assistance Programs [ADAPs] provide FDA-approved 
HIV-related prescription drugs to underinsured and uninsured 
individuals living with HIV/AIDS. Title II of the Ryan White 
Comprehensive AIDS Resources Emergency Act gives states broad 
authority to set program eligibility criteria and treatment 
options for this joint federal-state funded program based on 
need and the availability of funds. ADAPs play a particularly 
critical role in providing lifesaving medications to the very 
poor. Eighty percent of all ADAP clients are at 200 percent of 
the Federal Poverty Level or below. ADAP has been an extremely 
successful program and today is keeping over 100,000 people 
alive throughout the Nation. Since people are living longer, 
demand for HIV/AIDS treatment is at an all-time high. A recent 
Institute of Medicine report concluded that there are 233,000 
HIV-positive Americans who do not have access to AIDS drugs, 
and that some States have instituted waiting lists. The 
President recognized the importance of the ADAPs in his State 
of the Union address by calling for ``new funding to states, so 
we end the waiting lists for AIDS medicine in America.'' In his 
budget, the President proposed increasing ADAP funding by $70 
million. While this will not provide AIDS medications for 
everyone who needs them, it is a worthy increase and the 
committee recognizes the importance of funding this program at 
adequate levels.

                         Poison Control Program

    The budget resolution assumes funding of the Poison Control 
Program at the prior year level. The Poison Control Program 
currently supports a mix of grantees--most grantees serve 
entire states, but a few serve multistate regions and, in a 
handful of cases, more than one grantee serves a single state. 
The committee is generally supportive of this current structure 
and the budget resolution assumes no changes will be made in 
this approach. The committee also assumes that poison control 
funds will continue to be allocated to all certified centers 
based on service population.

                Maintaining Access to Ambulance Services

    Medicare reimbursement for ambulance services continues to 
be well below the national average for the cost of providing 
those services. Medicare patients on average account for 50 
percent of the revenue of ambulance service providers. In order 
to maintain adequate access and high quality service that 
Medicare beneficiaries deserve, it is essential that ambulance 
service providers be reimbursed for the cost of providing the 
service.

                    Man-Portable Air Defense Systems

    Man-Portable Air Defense Systems [MANPADS] remain a serious 
threat to commercial aviation, to the economy and to our nation 
as a whole. Commercial variants of military Infrared 
Countermeasures Systems have proven a safe and cost effective 
way to protect against this threat. The results of the 
Department of Homeland Security [DHS] Phase I and II studies 
have provided data confirming the feasibility of transferring 
proven military technology into the commercial environment. The 
committee recognizes the success of DHS' Counter-MANPAD program 
and the importance of adequately funding Phase III testing and 
consequent efforts to establish a procurement agency and 
production plan.

                      Physician Medicare Payments

    Under current Medicare law a formula, called the 
Sustainable Growth Rate [SGR], governs Medicare spending on 
physician services with the goal of containing spending in this 
area. The formula does not accurately reflect physician 
services or beneficiary utilization rates; and as such, 
physicians are scheduled to receive a significant reduction in 
reimbursement for treating Medicare beneficiaries in 2007 and 
beyond. The committee recognizes the need to modernize and 
stabilize physician payment, and urges the Congress to review 
the SGR payment system, and to determine a fair short-term 
solution for physician reimbursement in 2007, as well as a 
long-term solution that will fix payment update protocols so 
the Congress need not address the payment issue annually as was 
needed in 2006 to avoid the scheduled 4.4 percent reduction in 
reimbursement as dictated by the SGR. Improvements in quality 
mayalso be realized while updating the payment system, payment 
for performance initiatives have been examined by some House 
committees, and the committee recommends that quality improvement 
initiatives be included in any physician payment update to ensure 
Medicare beneficiaries receive the best possible care.

                         Physical Therapy Caps

    The committee recognizes the importance of patient access 
to high-quality rehabilitation services for Medicare 
beneficiaries and supports continued monitoring of the 
implementation of the Medicare Modernization Act of 2003 and 
beneficiary access to rehabilitation services for Medicare 
beneficiaries.

                       Lock and Dam Modernization

    The committee anticipates enactment during calendar year 
2006 of the Water Resources Development Act of 2005, including 
the authorization of lock modernization on the Upper 
Mississippi River and Illinois Waterway. Sixty percent of the 
nation's agricultural exports are transported through these 
locks every year. However, improvements to this infrastructure 
are needed to maintain the international competitiveness of the 
country's agricultural sector. As such, the committee notes 
that the budget resolution provides funding to meet this need 
and encourages the Congress to take the steps required to 
improve our inland waterway infrastructure.

                        Methamphetamine Programs

    Methamphetamine usage, production and trafficking have 
become a serious problem in the United States, particularly in 
Midwestern and Western states. This highly addictive drug has 
caused irreparable harm to families and children. State and 
Local Law Enforcement and Drug Task Forces have been 
instrumental in the war on drugs and in particular, ongoing 
efforts to eliminate methamphetamine production, trafficking 
and use. Accordingly, the committee is supportive of the 
Community Oriented Policing Services and Byrne Justice 
Assistance Grants programs.

                              Kidney Care

    The Medicare program covers vital kidney dialysis 
treatments for patients who are afflicted with End Stage Renal 
Disease [ESRD]. Unlike other Medicare providers, dialysis 
providers do not receive an annual payment update for their 
services. ESRD patients are dependent on this care, and in the 
interest of both better health outcomes and avoiding costs 
associated with unnecessary hospital stays, the committee urges 
Congress to ensure that Medicare payment policy for ESRD care 
preserves patient access to these important services. Further, 
the committee urges review of the impact on patient care that 
the lack of an automatic annual payment update for dialysis 
services has had on beneficiaries.

                              Global Aids

    The overall level of discretionary funding under this 
resolution is sufficient to support an historic level of 
funding for HIV/AIDS.

                     Program Assessment Rating Tool

    In 2001, the administration began to assess the 
government's programs with a consistent methodology, which is 
known as the Program Assessment Rating Tool [PART]. The 
administration has used the PART evaluations to assess almost 
1,000 programs and have used these assessments to assist in the 
formulation of the President's Budget.
    The PART evaluations help assess the performance and 
management of programs in order to ensure that performance is 
maximized with limited tax dollars. The evaluation process 
provides a meaningful insight into programs' ability to 
accomplish its intended missions and highlights modifications 
that can be made to improve performance. Information gathered 
during the PART process can assist in making the Federal 
Government more efficient and less costly to the American 
taxpayer.
    The administration also launched ExpectMore.gov, a new 
website that provides access to the PART assessments in formats 
that are easy-to-understand and search.
    The Committee on the Budget recommends that Congress make 
use of this information in authorization, appropriations, and 
oversight of program management and performance.

             Accounts Identified for Advance Appropriations

Elk Hills (89 5428 02 271)
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 (highways; transit; Farley Building)
Payment to Postal Service (18 1001 01 372)
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 budget authority or new 
entitlement authority or change revenues.

                General Performance Goals and Objectives

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

                       Views of Committee Members

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

                             Minority Views

    Earlier this month, the Senate increased the debt ceiling 
by $781 billion. This marked the fourth time in five years that 
Congress has raised the ceiling to make room for the Bush 
Administration's budgets. Those four increases total $3.015 
trillion. 


    When President Bush took office in 2001, the national debt 
was $5.7 trillion. By the end of next year, the national debt 
will rise to $9.3 trillion--up 66% in six years. At this rate, 
the Bush Administration will almost double the national debt by 
the end of its eight-year term.


    You can blame these dismal results on terrorism, recession, 
and war, but in truth, they come from a fiscal policy that says 
we can have guns, butter, and tax cuts, and ignore the 
deficits.
    This budget resolution is an extension of the same policy. 
It is a bridge to nowhere. It holds no plan or prospect for 
balancing the budget.
    The figures in this budget claim a unified deficit this 
year of $372 billion, declining to about $160 billion in 2011. 
That implies a linear reduction on to balance between 2011 and 
2016. But between 2006 and 2011, this budget makes major 
omissions. One omission is a long-term fix to the Alternative 
Minimum Tax (AMT). Another omission is some provision for the 
cost ofwar in Iraq and Afghanistan, beyond the $50 billion 
provided in the budget for 2007. The Congressional Budget Office (CBO) 
estimates the five-year cost is $224 billion, assuming redeployment to 
moderate levels, with 40,000 troops left in the theater. And, of 
course, unlike the President's budget, this budget includes nothing to 
implement the President's proposal to partially privatize Social 
Security. If Republicans support privatizing Social Security, then the 
budget resolution should reflect those costs. Furthermore, in the years 
beyond 2011, the impact of the tax cuts passed in 2001 and 2003, fully 
phased in, will have a profound, very costly effect, which this budget 
avoids by ending its forecast in 2011.
    This budget stands in stark contrast to the budgets of the 
Clinton Administration. The First Bush Administration left the 
Clinton Administration a deficit of $290 billion, which at the 
time was a record. Every year thereafter for eight straight 
years the bottom line of the budget got better. By 1998 the 
budget was in balance for the first time in 30 years. By 2000, 
the budget was running a surplus of $236 billion. President 
Bush took office the next year with an advantage no president 
in recent times has enjoyed: a budget in surplus--big-time 
surplus. His economists looked out ten years, and saw nothing 
but surpluses, $5.6 trillion in all over ten years.


    Democrats implored the President not to bet the budget on a 
blue-sky forecast, for if the rosy scenario did not 
materialize, we would find ourselves deep in deficit again. We 
also warned that while we might be sitting on an island of 
surpluses, we were surrounded by a sea of red ink, long-term 
liabilities for Social Security and Medicare--liabilities so 
large that if we kept books on an accrual basis, there would be 
no surplus.
    The President overlooked these factors, and so did 
Republicans in Congress, and thus five years later, the federal 
government faces record deficits. This budget and the 
President's budget show deficits diminishing over time, but 
when the projections on which they are based are adjusted for 
reality--when they include, for example, deployment costs for 
troops past 2007 and a long-term fix to the AMT--the resulting 
deficits grow larger and larger and are close to $500 billion 
by 2016.
    These enormous deficits and mounting debt could not come at 
a worse time. Seventy-seven million baby boomers are marching 
to their retirement starting in 2008, and we should not be 
running up debt but saving to be ready for their retirement.
    In the name of deficit reduction, this budget resolution 
does cut deeply into critical government services, but the cuts 
come mostly in services that people depend upon. The cuts hurt, 
but make barely a dent in the deficit. For example--
           Education--This budget cuts funding by $45.3 
        billion below current services over the next five 
        years. This budget matches the President's request for 
        education appropriations, which is $2.2 billion less 
        for 2007 than last year's comparable level. Presumably, 
        this means that the budget funds ``No Child Left 
        Behind'' at $15 billion below the authorized level and 
        that the budget eliminates 42 education programs, 
        including eliminating the Perkins vocational education 
        program and recalling federal contributions to 
        colleges' Perkins loan revolving funds.
           Community and Regional Development--This 
        budget provides $4.3 billion lessthan current services 
over the next five years.
           Veterans--This budget provides $6.0 billion 
        less than current services over the next five years. 
        True, it raises discretionary spending for 2006 by $2.6 
        billion over current services but it cuts funding for 
        Function 700 (Veterans) for 2008 by $59 million below 
        current services, and by increasing amounts in 
        subsequent years, culminating in a cut of $4.0 billion 
        by 2011.
           Natural Resources and Environment--This 
        budget provides $25.0 billion less than current 
        services over the next five years and imposes a $2.9 
        billion cut for next year alone.
           Health Care--This budget provides $18.1 
        billion less than current services over the next five 
        years.
    Most of the cuts in this resolution fall on domestic 
spending, and will never be sufficient to resolve the deficit 
because all such discretionary spending amounts to about $375 
billion, about the size of the budget deficit.


    In addition, all of this budget's spending cuts are like 
last year's ``Deficit Reduction Act.'' At the end of last year, 
Republicans managed to pass reductions of about $40 billion in 
mandatory spending, but during the year, the House passed $122 
billion in a sundry assortment of tax cuts, so that the net 
effect was not to reduce the deficit but to increase it by 
about $80 billion.
    By the same token, Republicans have a pending agenda of tax 
cut renewals, revisions, and new tax cuts, which total $3.038 
trillion, and which will add to the deficit over 2006-2016.
    Despite these cuts, this budget protects substantial 
spending for certain purposes. Defense is increased by $150 
billion over current services, not including supplemental 
appropriations. The budget continues Medicare subsidies close 
to $60 billion for managed care providers of Medicare even 
though they are supposed to save Medicare money, not cost more. 
What's more, this resolution leaves standing the most 
indefensible feature of the whole Medicare prescription drug 
law, namely, the provision that prohibits the government from 
negotiating prices. No one knows exactly how much savings the 
taxpayers are mission out on because of that prohibition, but 
clearly the negotiation of drug prices could save a lot of 
money.
    In our Budget Committee markup, Democrats proposed 
amendments that aimed to correct or mitigate some of these 
flaws and shortcomings, but nearly every amendment was rejected 
on a party-line vote. And that's truly a shame, because until 
we all sit at the same table, and put everything on the table, 
we will not resolve the deficits that plague this budget and 
our nation.

                                   John Spratt.
                                   Dennis Moore.
                                   Richard E. Neal.
                                   Rosa L. DeLauro.
                                   Chet Edwards.
                                   Harold E. Ford.
                                   Lois Capps.
                                   Brian Baird.
                                   Jim Cooper.
                                   Artur Davis.
                                   William J. Jefferson.
                                   Tom Allen.
                                   Ed Case.
                                   C. McKinney.
                                   Henry Cuellar.
                                   Allyson Y. Schwartz.
                                   Ron Kind.
109th CONGRESS

2d Session

                            H. CON. RES. 376

Establishing the congressional budget for the United States 
        Government for fiscal year 2007 and setting forth 
        appropriate budgetary levels for fiscal years 2008 
        through 2011.



                         CONCURRENT RESOLUTION


  Resolved by the House of Representatives (the Senate 
concurring),

SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2007.

  (a) Declaration.--The Congress declares that this is the 
concurrent resolution on the budget for fiscal year 2007, 
including appropriate budgetary levels for fiscal years 2008 
through 2011.
  (b) Table of Contents.--
Sec. 1. Concurrent resolution on the budget for fiscal year 2007.

                 TITLE I--RECOMMENDED LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.
Sec. 102. Major functional categories.

                        TITLE II--RECONCILIATION

Sec. 201. Reconciliation in the House of Representatives.

                        TITLE III--RESERVE FUNDS

Sec. 301. Reserve fund for the disposal of underutilized Federal real 
          property.
Sec. 302. Reserve fund for Secure Rural Schools and Community Self-
          Determination Act Reauthorization.
Sec. 303. Reserve fund for calendar year 2007 alternative minimum tax 
          relief.
Sec. 304. Reserve fund for the National Flood Insurance Program to meet 
          outstanding claims for flood damage in the Gulf.
Sec. 305. Reserve fund for the reform of the regulation of government-
          sponsored enterprises.

                      TITLE IV--BUDGET ENFORCEMENT

Sec. 401. Restrictions on advance appropriations.
Sec. 402. Overseas contingency operations.
Sec. 403. Exemption of avian bird flu response.
Sec. 404. Application and effect of changes in allocations and 
          aggregates.
Sec. 405. Adjustments to reflect changes in concepts and definitions.
Sec. 406. Compliance with section 13301 of the Budget Enforcement Act of 
          1990.
Sec. 407. Exercise of rulemaking powers.
Sec. 408. Treatment of allocations in the House.
Sec. 409. Budgetary treatment of the National Flood Insurance Program.
Sec. 410. Adjustments for tax legislation.

                     TITLE V--EMERGENCY RESERVE FUND

Sec. 501. Nondefense reserve fund for emergencies.
Sec. 502. Emergency criteria.
Sec. 503. Development of guidelines for application of emergency 
          definition.
Sec. 504. Committee notification of emergency legislation.
Sec. 505. Up-to-date tabulations.

                       TITLE VI--SENSE OF CONGRESS

Sec. 601. Sense of Congress on long-term budgeting.
Sec. 602. Sense of Congress on closing the tax gap to reduce the 
          deficit.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

  The following budgetary levels are appropriate for each of 
fiscal years 2007 through 2011:
          (1) Federal revenues.--For purposes of the 
        enforcement of this resolution:
                  (A) The recommended levels of Federal 
                revenues are as follows:
                          Fiscal year 2007: $1,780,666,000,000.
                          Fiscal year 2008: $1,913,598,000,000.
                          Fiscal year 2009: $2,011,187,000,000.
                          Fiscal year 2010: $2,122,195,000,000.
                          Fiscal year 2011: $2,212,263,000,000.
                  (B) The amounts by which the aggregate levels 
                of Federal revenues should be reduced are as 
                follows:
                          Fiscal year 2007: $38,933,000,000.
                          Fiscal year 2008: $8,178,000,000.
                          Fiscal year 2009: $20,384,000,000.
                          Fiscal year 2010: $13,782,000,000.
                          Fiscal year 2011: $144,808,000,000.
          (2) New budget authority.--For purposes of the 
        enforcement of this resolution, the appropriate levels 
        of total new budget authority are as follows:
                  Fiscal year 2007: $2,283,168,000,000.
                  Fiscal year 2008: $2,332,477,000,000.
                  Fiscal year 2009: $2,425,877,000,000.
                  Fiscal year 2010: $2,526,722,000,000.
                  Fiscal year 2011: $2,649,340,000,000.
          (3) Budget outlays.--For purposes of the enforcement 
        of this resolution, the appropriate levels of total 
        budget outlays are as follows:
                  Fiscal year 2007: $2,323,835,000,000.
                  Fiscal year 2008: $2,364,246,000,000.
                  Fiscal year 2009: $2,434,492,000,000.
                  Fiscal year 2010: $2,524,225,000,000.
                  Fiscal year 2011: $2,640,257,000,000.
          (4) Deficits (on-budget).--For purposes of the 
        enforcement of this resolution, the amounts of the 
        deficits (on-budget) are as follows:
                  Fiscal year 2007: $543,169,000,000.
                  Fiscal year 2008: $450,648,000,000.
                  Fiscal year 2009: $423,305,000,000.
                  Fiscal year 2010: $402,030,000,000.
                  Fiscal year 2011: $427,994,000,000.
          (5) Debt subject to limit.--Pursuant to section 
        301(a)(5) of the Congressional Budget Act of 1974, the 
        appropriate levels of the public debt are as follows:
                  Fiscal year 2007: $9,180,000,000,000.
                  Fiscal year 2008: $9,741,000,000,000.
                  Fiscal year 2009: $10,272,000,000,000.
                  Fiscal year 2010: $10,778,000,000,000.
                  Fiscal year 2011: $11,304,000,000,000.
          (6) Debt held by the public.--The appropriate levels 
        of debt held by the public are as follows:
                  Fiscal year 2007: $5,326,000,000,000.
                  Fiscal year 2008: $5,574,000,000,000.
                  Fiscal year 2009: $5,778,000,000,000.
                  Fiscal year 2010: $5,943,000,000,000.
                  Fiscal year 2011: $6,118,000,000,000.

SEC. 102. MAJOR FUNCTIONAL CATEGORIES.

  The Congress determines and declares that the appropriate 
levels of new budget authority and outlays for fiscal years 
2007 through 2011 for each major functional category are:
          (1) National Defense (050):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $512,901,000,000.
                          (B) Outlays, $534,858,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $484,661,000,000.
                          (B) Outlays, $505,516,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $504,753,000,000.
                          (B) Outlays, $505,874,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $514,858,000,000.
                          (B) Outlays, $512,573,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $525,781,000,000.
                          (B) Outlays, $524,894,000,000.
          (2) International Affairs (150):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $31,216,000,000.
                          (B) Outlays, $34,270,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $34,206,000,000.
                          (B) Outlays, $33,410,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $34,178,000,000.
                          (B) Outlays, $33,275,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $33,869,000,000.
                          (B) Outlays, $33,093,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $34,293,000,000.
                          (B) Outlays, $32,717,000,000.
          (3) General Science, Space, and Technology (250):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $25,938,000,000.
                          (B) Outlays, $25,108,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $27,146,000,000.
                          (B) Outlays, $26,083,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $28,193,000,000.
                          (B) Outlays, $27,135,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $29,410,000,000.
                          (B) Outlays, $28,263,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $30,689,000,000.
                          (B) Outlays, $29,483,000,000.
          (4) Energy (270):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $2,262,000,000.
                          (B) Outlays, $915,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $2,688,000,000.
                          (B) Outlays, $703,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $2,317,000,000.
                          (B) Outlays, $913,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $2,190,000,000.
                          (B) Outlays, $867,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $2,094,000,000.
                          (B) Outlays, $711,000,000.
          (5) Natural Resources and Environment (300):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $29,650,000,000.
                          (B) Outlays, $33,038,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $28,833,000,000.
                          (B) Outlays, $30,756,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $29,238,000,000.
                          (B) Outlays, $30,285,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $28,687,000,000.
                          (B) Outlays, $29,724,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $28,595,000,000.
                          (B) Outlays, $29,313,000,000.
          (6) Agriculture (350):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $27,356,000,000.
                          (B) Outlays, $26,782,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $25,205,000,000.
                          (B) Outlays, $24,564,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $24,512,000,000.
                          (B) Outlays, $23,829,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $23,370,000,000.
                          (B) Outlays, $22,560,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $23,011,000,000.
                          (B) Outlays, $22,281,000,000.
          (7) Commerce and Housing Credit (370):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $16,518,000,000.
                          (B) Outlays, $8,049,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $13,178,000,000.
                          (B) Outlays, $7,997,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $13,278,000,000.
                          (B) Outlays, $7,987,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $17,062,000,000.
                          (B) Outlays, $8,857,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $11,866,000,000
                          (B) Outlays, $5,390,000,000.
          (8) Transportation (400):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $78,258,000,000.
                          (B) Outlays, $75,774,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $81,283,000,000.
                          (B) Outlays, $78,557,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $72,878,000,000.
                          (B) Outlays, $78,329,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $72,926,000,000.
                          (B) Outlays, $77,828,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $73,477,000,000.
                          (B) Outlays, $77,833,000,000.
          (9) Community and Regional Development (450):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $15,942,000,000.
                          (B) Outlays, $31,345,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $12,917,000,000.
                          (B) Outlays, $25,443,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $12,981,000,000.
                          (B) Outlays, $21,661,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $12,988,000,000.
                          (B) Outlays, $17,777,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $13,218,000,000.
                          (B) Outlays, $13,680,000,000.
          (10) Education, Training, Employment, and Social 
        Services (500):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $84,849,000,000.
                          (B) Outlays, $87,530,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $84,140,000,000.
                          (B) Outlays, $85,316,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $83,989,000,000.
                          (B) Outlays, $83,273,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $83,393,000,000.
                          (B) Outlays, $82,575,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $83,343,000,000.
                          (B) Outlays, $82,597,000,000.
          (11) Health (550):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $275,750,000,000.
                          (B) Outlays, $274,299,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $289,867,000,000.
                          (B) Outlays, $290,959,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $310,193,000,000.
                          (B) Outlays, $308,548,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $326,949,000,000.
                          (B) Outlays, $326,707,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $348,509,000,000.
                          (B) Outlays, $347,074,000,000.
          (12) Medicare (570):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $382,803,000,000.
                          (B) Outlays, $388,276,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $413,350,000,000.
                          (B) Outlays, $413,417,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $443,331,000,000.
                          (B) Outlays, $443,022,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $472,962,000,000.
                          (B) Outlays, $473,238,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $523,267,000,000.
                          (B) Outlays, $523,305,000,000.
          (13) Income Security (600):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $356,761,000,000.
                          (B) Outlays, $362,086,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $371,174,000,000.
                          (B) Outlays, $374,267,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $381,732,000,000.
                          (B) Outlays, $384,278,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $391,682,000,000.
                          (B) Outlays, $393,209,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $406,687,000,000.
                          (B) Outlays, $406,960,000,000.
          (14) Social Security (650):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $16,922,000,000.
                          (B) Outlays, $16,922,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $18,814,000,000.
                          (B) Outlays, $18,814,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $20,694,000,000.
                          (B) Outlays, $20,694,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $22,866,000,000.
                          (B) Outlays, $22,866,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $26,480,000,000.
                          (B) Outlays, $26,480,000,000.
          (15) Veterans Benefits and Services (700):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $74,627,000,000.
                          (B) Outlays, $73,944,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $76,925,000,000.
                          (B) Outlays, $77,200,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $77,814,000,000.
                          (B) Outlays, $77,982,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $78,232,000,000.
                          (B) Outlays, $78,264,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $82,398,000,000.
                          (B) Outlays, $82,249,000,000.
          (16) Administration of Justice (750):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $42,795,000,000.
                          (B) Outlays, $43,621,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $42,908,000,000.
                          (B) Outlays, $43,578,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $43,454,000,000.
                          (B) Outlays, $43,716,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $43,816,000,000.
                          (B) Outlays, $43,903,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $44,862,000,000.
                          (B) Outlays, $44,492,000,000.
          (17) General Government (800):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $18,981,000,000.
                          (B) Outlays, $18,873,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $18,332,000,000.
                          (B) Outlays, $18,318,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $18,365,000,000.
                          (B) Outlays, $18,099,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $18,250,000,000.
                          (B) Outlays, $18,020,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $18,479,000,000.
                          (B) Outlays, $18,213,000,000.
          (18) Net Interest (900):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $354,079,000,000.
                          (B) Outlays, $354,079,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $383,499,000,000.
                          (B) Outlays, $383,499,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $405,709,000,000.
                          (B) Outlays, $405,709,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $427,371,000,000.
                          (B) Outlays, $427,371,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $449,114,000,000.
                          (B) Outlays, $449,114,000,000.
          (19) Allowances (920):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $4,145,000,000.
                          (B) Outlays, $3,493,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        -$7,922,000,000.
                          (B) Outlays, -$5,752,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$7,252,000,000.
                          (B) Outlays, -$5,918,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        -$7,384,000,000.
                          (B) Outlays, -$6,882,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        -$7,539,000,000.
                          (B) Outlays, -$7,282,000,000.
          (20) Undistributed Offsetting Receipts (950):
                  Fiscal year 2007:
                          (A) New budget authority, 
                        -$68,585,000,000.
                          (B) Outlays, -$69,427,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        -$68,727,000,000.
                          (B) Outlays, -$68,399,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$74,480,000,000.
                          (B) Outlays, -$74,199,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        -$66,775,000,000.
                          (B) Outlays, -$66,588,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        -$69,284,000,000.
                          (B) Outlays, -$69,247,000,000.

                        TITLE II--RECONCILIATION

SEC. 201. RECONCILIATION IN THE HOUSE OF REPRESENTATIVES.

  (a) Submissions to Provide for the Continued Reform of 
Mandatory Spending.--(1) Not later than May 12, 2006, the House 
committees named in paragraph (2) shall submit their 
recommendations to the House Committee on the Budget. After 
receiving those recommendations, the House Committee on the 
Budget shall report to the House a reconciliation bill carrying 
out all such recommendations without any substantive revision.
  (2) Instructions.--
          (A) Committee on agriculture.--The House Committee on 
        Agriculture shall report changes in laws within its 
        jurisdiction sufficient to reduce the deficit by 
        $55,000,000 for the period of fiscal years 2007 through 
        2011.
          (B) Committee on armed services.--The House Committee 
        on Armed Services shall report changes in laws within 
        its jurisdiction sufficient to reduce the deficit by 
        $175,000,000 for the period of fiscal years 2007 
        through 2011.
          (C) Committee on education and the workforce.--The 
        House Committee on Education and the Workforce shall 
        report changes in laws within its jurisdiction 
        sufficient to reduce the deficit by $1,323,000,000 for 
        the period of fiscal years 2007 through 2011.
          (D) Committee on financial services instruction to 
        trigger release of flood insurance reserve fund to 
        cover additional claims in the gulf region.--The House 
        Committee on Financial Services shall report changes in 
        laws within its jurisdiction sufficient to reduce the 
        deficit by $400,000,000 for the period of fiscal years 
        2007 through 2011.
          (E) Committee on international relations.--The House 
        Committee on International Relations shall report 
        changes in laws within its jurisdiction sufficient to 
        reduce the deficit by $250,000,000 for the period of 
        fiscal years 2007 through 2011.
          (F) Committee on the judiciary.--The House Committee 
        on the Judiciary shall report changes in laws within 
        its jurisdiction sufficient to reduce the deficit by 
        $500,000,000 for the period of fiscal years 2007 
        through 2011.
          (G) Committee on transportation and infrastructure.--
        The House Committee on Transportation and 
        Infrastructure shall report changes in laws within its 
        jurisdiction sufficient to reduce the deficit by 
        $50,000,000 for the period of fiscal years 2007 through 
        2011.
          (H) Committee on ways and means.--The House Committee 
        on Ways and Means shall report changes in laws within 
        its jurisdiction sufficient to reduce the deficit by 
        $4,000,000,000 for the period of fiscal years 2007 
        through 2011.
  (b) Submission of Revised Allocations.--(1) Upon the 
submission to the Committee on the Budget of the House of a 
recommendation that has complied with its reconciliation 
instructions solely by virtue of section 310(c) of the 
Congressional Budget Act of 1974, the chairman of that 
committee may file with the House appropriately revised 
allocations under section 302(a) of such Act and revised 
functional levels and aggregates.
  (2) Upon the submission to the House of a conference report 
recommending a reconciliation bill or resolution in which a 
committee has complied with its reconciliation instructions 
solely by virtue of this section, the chairman of the Committee 
on the Budget of the House may file with the House 
appropriately revised allocations under section 302(a) of such 
Act and revised functional levels and aggregates.
  (3) Allocations and aggregates revised pursuant to this 
subsection shall be considered to be allocations and aggregates 
established by the concurrent resolution on the budget pursuant 
to section 301 of such Act.

                        TITLE III--RESERVE FUNDS

SEC. 301. RESERVE FUND FOR THE DISPOSAL OF UNDERUTILIZED FEDERAL REAL 
                    PROPERTY.

  If the Committee on Government Reform of the House reports a 
bill or joint resolution, or an amendment is offered thereto or 
a conference report is submitted thereon, that enhances the 
Government's real property disposal authority and generates 
discretionary savings, the chairman of the Committee on the 
Budget may make the appropriate adjustments in allocations and 
aggregates by the amount provided by that measure for that 
purpose, but not to exceed $25,000,000 in new budget authority 
and outlays flowing therefrom for fiscal year 2007, and 
$25,000,000 in new budget authority and outlays flowing 
therefrom for the period of fiscal years 2007 through 2011.

SEC. 302. RESERVE FUND FOR SECURE RURAL SCHOOLS AND COMMUNITY SELF-
                    DETERMINATION ACT REAUTHORIZATION.

  In the House, after the filing of a rule that provides for 
the consideration of any bill or joint resolution or whenever 
any bill or joint resolution is placed on any calendar, or if 
an amendment is offered to or conference report is submitted on 
any bill or joint resolution that provides for the 
reauthorization of the Secure Rural Schools and Community Self-
Determination Act (Public Law 106-393), then the chairman of 
the Committee on the Budget may make the appropriate 
adjustments in allocations and aggregates to the extent that 
such legislation would not increase the deficit for the period 
of fiscal years 2007 through 2011.

SEC. 303. RESERVE FUND FOR CALENDAR YEAR 2007 ALTERNATIVE MINIMUM TAX 
                    RELIEF.

  If the Committee on Ways and Means reports a bill, or an 
amendment is offered thereto or a conference report is 
submitted thereon, that would increase the exemption amounts 
specified in section 55(d)(1) of the Internal Revenue Code of 
1986 with respect to taxable years beginning in calendar year 
2007, the chairman of the Committee on the Budget may make the 
appropriate adjustments in allocations and aggregates for 
fiscal year 2007 to the extent that such legislation would not 
reduce revenues below the aggregate level of revenues provided 
in section 101(1)(A) for the period of fiscal years 2007 
through 2011.

SEC. 304. RESERVE FUND FOR THE NATIONAL FLOOD INSURANCE PROGRAM TO MEET 
                    OUTSTANDING CLAIMS FOR FLOOD DAMAGE IN THE GULF.

  If the Committee on Financial Services of the House reports a 
bill or joint resolution, or an amendment is offered thereto or 
a conference report is submitted thereon, that--
          (1) establishes more actuarially sound rates on 
        policies issued by the National Flood Insurance 
        Program; and
          (2) phases out flood insurance subsidies on pre-FIRM 
        structures not used as primary residences;
  the chairman of the Committee on the Budget may make the 
appropriate adjustments in allocations and aggregates by the 
amount provided by that measure for the purpose of liquidating 
the National Flood Insurance Fund's remaining contractual 
obligations resulting from claims made as a result of floods 
that occurred in 2005, but not to exceed $3,325,000,000 in new 
budget authority for fiscal year 2007 for that purpose. Such 
adjustments may also be made if the reforms set forth in 
paragraphs (1) and (2) have been enacted prior to the 
consideration of the measure referred to in this section.

SEC. 305. RESERVE FUND FOR THE REFORM OF THE REGULATION OF GOVERNMENT-
                    SPONSORED ENTERPRISES.

  In the House, if--
          (1) the Committee on Financial Services of the House 
        reports a bill or joint resolution, or if an amendment 
        is offered thereto or a conference report is submitted 
        thereon, that reforms the regulation of certain 
        housing-related Government-sponsored enterprises; and
          (2) that committee is within its allocation as 
        provided under section 302(a) of the Congressional 
        Budget Act of 1974;
the chairman of the Committee on the Budget may make the 
appropriate adjustments in allocations and aggregates to the 
extent that such legislation would not increase the deficit for 
fiscal year 2007 and the period of fiscal years 2007 through 
2011.

                      TITLE IV--BUDGET ENFORCEMENT

SEC. 401. RESTRICTIONS ON ADVANCE APPROPRIATIONS.

  (a) In General.--(1) In the House, except as provided in 
subsection (b), an advance appropriation may not be reported in 
a bill or joint resolution making a general appropriation or 
continuing appropriation, and may not be in order as an 
amendment thereto.
  (2) Managers on the part of the House may not agree to a 
Senate amendment that would violate paragraph (1) unless 
specific authority to agree to the amendment first is given by 
the House by a separate vote with respect thereto.
  (b) Advance Appropriation.--In the House, an advance 
appropriation may be provided for the fiscal years 2008 and 
2009 for programs, projects, activities, or accounts identified 
in the joint explanatory statement of managers accompanying 
this resolution under the heading ``Accounts Identified for 
Advance Appropriations'' in an aggregate amount not to exceed 
$23,565,000,000 in new budget authority in each year.
  (c) Definition.--In this section, the term ``advance 
appropriation'' means any new budget authority provided in a 
bill or joint resolution making general appropriations or any 
new budget authority provided in a bill or joint resolution 
making continuing appropriations for fiscal year 2007 that 
first becomes available for any fiscal year after 2007.

SEC. 402. OVERSEAS CONTINGENCY OPERATIONS.

  (a) Exemption of Overseas Contingency Operations.--In the 
House, if any bill or joint resolution is reported, or an 
amendment is offered thereto or a conference report is filed 
thereon, that makes appropriations for fiscal year 2007 for 
contingency operations directly related to the global war on 
terrorism, and other unanticipated defense-related operations, 
then the new budget authority, new entitlement authority, 
outlays, or receipts resulting therefrom shall not count for 
purposes of titles III or IV of the Congressional Budget Act of 
1974.
  (b) Current Level.--Amounts included in this resolution for 
the purpose set forth in this section shall be considered to be 
current law for purposes of the preparation of the current 
level of budget authority and outlays and the appropriate 
levels shall be adjusted upon the enactment of such bill.

SEC. 403. EXEMPTION OF AVIAN BIRD FLU RESPONSE.

  In the House, if any bill or joint resolution is reported, or 
an amendment is offered thereto or a conference report is filed 
thereon, that makes appropriations for fiscal year 2007 to 
combat avian flu, increase local preparedness, and develop a 
vaccine to innoculate the United States population, then the 
new budget authority, new entitlement authority, or outlays 
resulting therefrom shall not count for purposes of titles III 
or IV of the Congressional Budget Act of 1974, but the total 
amount so exempt shall not exceed $2,300,000,000.

SEC. 404. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS AND 
                    AGGREGATES.

  (a) Application.--Any adjustments of allocations and 
aggregates made pursuant to this resolution shall--
          (1) apply while that measure is under consideration;
          (2) take effect upon the enactment of that measure; 
        and
          (3) be published in the Congressional Record as soon 
        as practicable.
  (b) Effect of Changed Allocations and Aggregates.--Revised 
allocations and aggregates resulting from these adjustments 
shall be considered for the purposes of the Congressional 
Budget Act of 1974 as allocations and aggregates contained in 
this resolution.
  (c) Budget Committee Determinations.--For purposes of this 
resolution--
          (1) the levels of new budget authority, outlays, 
        direct spending, new entitlement authority, revenues, 
        deficits, and surpluses for a fiscal year or period of 
        fiscal years shall be determined on the basis of 
        estimates made by the appropriate Committee on the 
        Budget; and
          (2) such chairman may make any other necessary 
        adjustments to such levels, including adjustments 
        necessary, and in the House separate allocations, to 
        reflect the timing of responses to reconciliation 
        directives pursuant to section 201 of this resolution.

SEC. 405. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND DEFINITIONS.

  Upon the enactment of a bill or joint resolution providing 
for a change in concepts or definitions, the appropriate 
chairman of the Committee on the Budget shall make adjustments 
to the levels and allocations in this resolution in accordance 
with section 251(b) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (as in effect prior to September 
30, 2002).

SEC. 406. COMPLIANCE WITH SECTION 13301 OF THE BUDGET ENFORCEMENT ACT 
                    OF 1990.

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

SEC. 407. EXERCISE OF RULEMAKING POWERS.

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

SEC. 408. TREATMENT OF ALLOCATIONS IN THE HOUSE.

  (a) In General.--In the House, the Committee on 
Appropriations may make a separate suballocation for 
appropriations for the legislative branch for the first fiscal 
year of this resolution. Such suballocation shall be deemed to 
be made under section 302(b) of the Congressional Budget Act of 
1974 and shall be treated as such a suballocation for all 
purposes under section 302 of such Act.
  (b) Display of Committee Allocations.--An allocation to a 
committee under section 302(a) of the Congressional Budget Act 
of 1974 may display an amount to reflect a committee's 
instruction under the reconciliation process, but it shall not 
constitute an allocation within the meaning of section 302 of 
such Act. Any deficit reduction achieved in a reconciliation 
bill submitted pursuant to title II of this resolution shall 
not be included in current levels of new budget authority and 
outlays for purposes of enforcing an allocation under 302(a) of 
such Act.

SEC. 409. BUDGETARY TREATMENT OF THE NATIONAL FLOOD INSURANCE PROGRAM.

  (a) Treatment.--For purposes of the allocations and 
aggregates in this resolution, the reconciliation directives 
established by this resolution, and for any other purpose under 
titles III and IV of the Congressional Budget Act of 1974, the 
budgetary effects of any bill or joint resolution, amendment 
thereto, or conference report thereon, or any recommendations 
submitted pursuant to section 201 that includes the reforms set 
forth in subsection (b) shall be scored without regard to the 
obligations resulting from the enactment of Public Law 109-208. 
Such estimate shall assume the liquidating of the National 
Flood Insurance Fund's remaining contractual obligations 
resulting from claims made as a result of floods that occurred 
in 2005.
  (b) Legislation.--The legislation referred to in subsection 
(a) shall--
          (1) establish more actuarially sound rates on 
        policies issued by the National Flood Insurance 
        Program; and
          (2) end flood insurance subsidies on pre-FIRM 
        structures not used as primary residences.

SEC. 410. ADJUSTMENTS FOR TAX LEGISLATION.

  In the House, if the Committee on Ways and Means reports a 
bill or joint resolution, or an amendment is offered thereto or 
a conference report is submitted thereon, that amends the 
Internal Revenue Code of 1986 by extending the expiration dates 
for Federal tax policies that expired during fiscal year 2006 
or that expire during the period of fiscal years 2007 through 
2011, then the chairman of the Committee on the Budget may make 
appropriate adjustments in the allocations and aggregates of 
budget authority, outlays, and revenue set forth in this 
resolution to reflect the budgetary effects of such 
legislation, but only to the extent the adjustments would not 
cause the level of revenue to be less than the level of revenue 
provided for in this resolution for the period of fiscal years 
2007 through 2011 and would not cause the deficit to exceed the 
appropriate level of deficits provided for in this resolution 
for the period of fiscal years 2007 through 2011.

                    TITLE V--EMERGENCY RESERVE FUND

SEC. 501. NONDEFENSE RESERVE FUND FOR EMERGENCIES.

  (a) Nondefense Reserve Fund.--In the House and except as 
provided by subsection (b), if a bill or joint resolution is 
reported, or an amendment is offered thereto (or considered as 
adopted) or a conference report is filed thereon, that provides 
new budget authority (and outlays flowing therefrom), and such 
provision is designated as an emergency pursuant to this 
section, the chairman of the Committee on the Budget shall make 
adjustments to the allocations and aggregates set forth in this 
resolution up to the amount of such provisions if the 
requirements set forth in section 504 are met, but the sum of 
all adjustments made under this section shall not exceed 
$4,348,000,000 for fiscal year 2007 or $4,348,000,000 for the 
period of fiscal years 2007 through 2011.
  (b) Adjustments in Excess of the Reserve Fund.--In the House, 
before any adjustment is made pursuant to this title for any 
bill, joint resolution, or conference report is considered that 
designates a provision an emergency, the enactment of which 
would cause the total amount in the reserve fund for either 
fiscal year 2007 or for the period of fiscal years 2007 through 
2011 to be exceeded:
          (1) The chairman of the Committee on the Budget shall 
        convene a meeting of that committee, where it shall be 
        in order, subject to the terms set forth in this 
        section, for one motion described in paragraph (2) to 
        be made to authorize the chairman to make adjustments 
        above the maximum amount of adjustments set forth in 
        subsection (a).
          (2) The motion referred to in paragraph (1) shall be 
        in the following form: ``I move that the chairman of 
        the Committee on the Budget be authorized to adjust the 
        allocations and aggregates set forth in the concurrent 
        resolution on the budget for fiscal year 2007 by the 
        following amounts: $__ for fiscal year 2007 and $__ for 
        fiscal years 2007 through 2011.'', with the blanks 
        being filled in with amounts determined by the chairman 
        of the Committee on the Budget, but which shall not 
        exceed the total amount for fiscal year 2007 or for 
        such period of fiscal years, as applicable, designated 
        as emergencies in the measure referred to in this 
        section, in excess of the applicable amount remaining 
        in the reserve fund.
          (3) The motion set forth in paragraph (2) shall be 
        open for debate and amendment, but any amendment 
        offered thereto is only in order if limited to amending 
        the amounts for fiscal year 2007 or for the period of 
        fiscal years 2007 through 2011.
          (4) Except as provided by paragraph (5), the chairman 
        of the Committee on the Budget may not make any 
        adjustments under this title unless or until the 
        committee filing a report or joint statement of 
        managers on a conference report on a measure including 
        an emergency designation fulfills the terms set forth 
        in section 504.
          (5) The chairman of the Committee on the Budget shall 
        make any adjustments he deems necessary under this 
        title if he determines the enactment of the provision 
        or provisions designated as an emergency is essential 
        to respond to an urgent and imminent need, the chairman 
        determines the exceptional circumstances referred to in 
        rule 3 of the rules of the committee are met and the 
        committee cannot convene to consider the motion 
        referred to in this section in a timely fashion.
  (c) Application of Adjustments.--The adjustments made 
pursuant to subsection (a) or (b) shall--
          (1) apply while that bill, joint resolution, 
        conference report or amendement is under consideration;
          (2) take effect upon the enactment of that 
        legislation; and
          (3) be published in the Congressional Record as soon 
        as practicable.

SEC. 502. EMERGENCY CRITERIA.

  As used in this title:
          (1) The term ``emergency'' means a situation that--
                  (A) requires new budget authority and outlays 
                (or new budget authority and the outlays 
                flowing therefrom) for the prevention or 
                mitigation of, or response to, loss of life or 
                property, or a threat to national security; and
                  (B) is unanticipated.
          (2) The term ``unanticipated'' means that the 
        underlying situation is--
                  (A) Sudden, which means quickly coming into 
                being or not building up over time;
                  (B) Urgent, which means a pressing and 
                compelling need requiring immediate action;
                  (C) Unforeseen, which means not predicted or 
                anticipated as an emerging need; and
                  (D) Temporary, which means not of a permanent 
                duration.

SEC. 503. DEVELOPMENT OF GUIDELINES FOR APPLICATION OF EMERGENCY 
                    DEFINITION.

  In the House, as soon as practicable after the adoption of 
this resolution, the chairman of the Committee on the Budget 
shall, after consultation with the chairmen of the applicable 
committees, and the Director of the Congressional Budget 
Office, prepare guidelines for application of the definition of 
an emergency and publish such guidelines in the Congressional 
Record, and may issue any committee print from the Committee on 
the Budget for this or other purposes.

SEC. 504. COMMITTEE NOTIFICATION OF EMERGENCY LEGISLATION.

  (a) Committee Notification.--Whenever a committee of the 
House (including a committee of conference) reports any bill or 
joint resolution that includes a provision designated as an 
emergency pursuant to this title, the report accompanying that 
bill or joint resolution (or the joint explanatory statement of 
managers in the case of a conference report on any such bill or 
joint resolution) shall identify all provisions that provide 
amounts designated as an emergency and shall provide an 
explanation of the manner in which the provision meets the 
criteria set forth in section 502.
  (b) Congressional Record.--If such a measure is to be 
considered by the House without being reported by the committee 
of jurisdiction, then the committee shall cause the explanation 
to be published in the Congressional Record as soon as 
practicable.

SEC. 505. UP-TO-DATE TABULATIONS.

  The Committee on the Budget of the House shall publish in the 
Congressional Record up-to-date tabulations of amounts 
remaining in the reserve fund set forth in section 501, or 
authorized in excess thereof, as soon as practicable after the 
enactment of such amounts designated as emergencies.

                      TITLE VI--SENSE OF CONGRESS

SEC. 601. SENSE OF CONGRESS ON LONG-TERM BUDGETING.

  It is the sense of Congress that the determination of the 
congressional budget for the United States Government and the 
President's budget request should include consideration of the 
Financial Report of the United States Government, especially 
its information regarding the Government's net operating cost, 
financial position, and long-term liabilities.

SEC. 602. SENSE OF CONGRESS ON CLOSING THE TAX GAP TO REDUCE THE 
                    DEFICIT.

  It is the sense of Congress that any revenues increases 
achieved through recovery of taxes legally owed to the U.S. 
Treasury but not actually paid, the so-called ``tax gap'', 
shall be dedicated entirely to reducing the deficit and the 
accumulated debt, and not to financing additional spending.

                                  
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