[Pages H1864-H1911]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

CONFERENCE REPORT ON HOUSE CONCURRENT RESOLUTION 83, CONCURRENT
RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2002

Mr. NUSSLE submitted the following conference report and statement on
the concurrent resolution (H. Con. Res. 83) establishing the
congressional budget for the United States Government for fiscal year
2002, revising the congressional budget for the United States
Government for fiscal year 2001, and setting forth appropriate
budgetary levels for each of fiscal years 2003 through 2011:

Conference Report (H. REPT. 107-55)

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

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

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

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

TITLE I--RECOMMENDED LEVELS AND AMOUNTS

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

TITLE II--BUDGET ENFORCEMENT AND RULEMAKING

Subtitle A--Budget Enforcement

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

Subtitle B--Reserve Funds

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

[[Page H1865]]

Subtitle C--Miscellaneous Provisions

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

TITLE III--SENSE OF THE SENATE AND CONGRESS PROVISIONS

Subtitle A--Sense of the Senate

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

Subtitle B--Sense of the Congress

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

TITLE I--RECOMMENDED LEVELS AND AMOUNTS

SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

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

(A) New budget authority, $3,431,000,000.
(B) Outlays, $3,371,000,000.

Fiscal year 2002:

(A) New budget authority, $3,579,000,000.
(B) Outlays, $3,525,000,000.

Fiscal year 2003:

(A) New budget authority, $3,695,000,000.
(B) Outlays, $3,655,000,000.

Fiscal year 2004:

(A) New budget authority, $3,819,000,000.
(B) Outlays, $3,763,000,000.

Fiscal year 2005:

(A) New budget authority, $3,939,000,000.
(B) Outlays, $3,881,000,000.

Fiscal year 2006:

(A) New budget authority, $4,064,000,000.
(B) Outlays, $4,004,000,000.

Fiscal year 2007:

(A) New budget authority, $4,194,000,000.
(B) Outlays, $4,132,000,000.

Fiscal year 2008:

(A) New budget authority, $4,331,000,000.
(B) Outlays, $4,267,000,000.

Fiscal year 2009:

(A) New budget authority, $4,471,000,000.
(B) Outlays, $4,405,000,000.

Fiscal year 2010:

(A) New budget authority, $4,619,000,000.
(B) Outlays, $4,551,000,000.

Fiscal year 2011:

(A) New budget authority, $4,773,000,000.
(B) Outlays, $4,702,000,000.

SEC. 102. MAJOR FUNCTIONAL CATEGORIES.

Congress determines and declares that the appropriate
levels of new budget authority, budget outlays, new direct
loan obligations, and new primary loan guarantee commitments
for fiscal years 2002 through 2011 for each major functional
category are:
(1) National Defense (050):
Fiscal year 2001:
(A) New budget authority, $316,873,000,000.
(B) Outlays, $302,371,000,000.
Fiscal year 2002:
(A) New budget authority, $324,832,000,000.
(B) Outlays, $319,137,000,000.
Fiscal year 2003:
(A) New budget authority, $333,646,000,000.
(B) Outlays, $326,643,000,000.
Fiscal year 2004:
(A) New budget authority, $342,294,000,000.
(B) Outlays, $335,184,000,000.
Fiscal year 2005:
(A) New budget authority, $350,876,000,000.
(B) Outlays, $347,073,000,000.
Fiscal year 2006:
(A) New budget authority, $359,807,000,000.
(B) Outlays, $353,482,000,000.
Fiscal year 2007:
(A) New budget authority, $369,023,000,000.
(B) Outlays, $359,774,000,000.
Fiscal year 2008:
(A) New budget authority, $378,505,000,000.
(B) Outlays, $372,416,000,000.
Fiscal year 2009:
(A) New budget authority, $388,323,000,000.
(B) Outlays, $382,242,000,000.
Fiscal year 2010:
(A) New budget authority, $398,338,000,000.
(B) Outlays, $392,227,000,000.
Fiscal year 2011:
(A) New budget authority, $408,821,000,000.
(B) Outlays, $402,579,000,000.

[[Page H1866]]

(2) International Affairs (150):
Fiscal year 2001:
(A) New budget authority, $22,424,000,000.
(B) Outlays, $19,670,000,000.
Fiscal year 2002:
(A) New budget authority, $23,214,000,000.
(B) Outlays, $19,082,000,000.
Fiscal year 2003:
(A) New budget authority, $23,750,000,000.
(B) Outlays, $19,554,000,000.
Fiscal year 2004:
(A) New budget authority, $24,214,000,000.
(B) Outlays, $20,164,000,000.
Fiscal year 2005:
(A) New budget authority, $24,911,000,000.
(B) Outlays, $20,431,000,000.
Fiscal year 2006:
(A) New budget authority, $25,504,000,000.
(B) Outlays, $20,900,000,000.
Fiscal year 2007:
(A) New budget authority, $26,107,000,000.
(B) Outlays, $21,494,000,000.
Fiscal year 2008:
(A) New budget authority, $26,482,000,000.
(B) Outlays, $22,031,000,000.
Fiscal year 2009:
(A) New budget authority, $26,937,000,000.
(B) Outlays, $22,650,000,000.
Fiscal year 2010:
(A) New budget authority, $27,458,000,000.
(B) Outlays, $23,235,000,000.
Fiscal year 2011:
(A) New budget authority, $28,065,000,000.
(B) Outlays, $23,766,000,000.
(3) General Science, Space, and Technology (250):
Fiscal year 2001:
(A) New budget authority, $21,043,000,000.
(B) Outlays, $19,612,000,000.
Fiscal year 2002:
(A) New budget authority, $21,583,000,000.
(B) Outlays, $20,725,000,000.
Fiscal year 2003:
(A) New budget authority, $22,055,000,000.
(B) Outlays, $21,361,000,000.
Fiscal year 2004:
(A) New budget authority, $22,379,000,000.
(B) Outlays, $21,945,000,000.
Fiscal year 2005:
(A) New budget authority, $22,839,000,000.
(B) Outlays, $22,429,000,000.
Fiscal year 2006:
(A) New budget authority, $23,323,000,000.
(B) Outlays, $22,847,000,000.
Fiscal year 2007:
(A) New budget authority, $23,812,000,000.
(B) Outlays, $23,280,000,000.
Fiscal year 2008:
(A) New budget authority, $24,303,000,000.
(B) Outlays, $23,743,000,000.
Fiscal year 2009:
(A) New budget authority, $24,816,000,000.
(B) Outlays, $24,239,000,000.
Fiscal year 2010:
(A) New budget authority, $25,335,000,000.
(B) Outlays, $24,749,000,000.
Fiscal year 2011:
(A) New budget authority, $25,879,000,000
(B) Outlays, $25,274,000,000.
(4) Energy (270):
Fiscal year 2001:
(A) New budget authority, $1,225,000,000.
(B) Outlays, -$115,000,000.
Fiscal year 2002:
(A) New budget authority, $1,360,000,000.
(B) Outlays, -$19,000,000.
Fiscal year 2003:
(A) New budget authority, $1,328,000,000.
(B) Outlays, -$72,000,000.
Fiscal year 2004:
(A) New budget authority, $1,309,000,000.
(B) Outlays, -$120,000,000.
Fiscal year 2005:
(A) New budget authority, $1,254,000,000.
(B) Outlays, -$91,000,000.
Fiscal year 2006:
(A) New budget authority, $1,336,000,000.
(B) Outlays, -$3,000,000.
Fiscal year 2007:
(A) New budget authority, $1,411,000,000.
(B) Outlays, $71,000,000.
Fiscal year 2008:
(A) New budget authority, $1,882,000,000.
(B) Outlays, $440,000,000.
Fiscal year 2009:
(A) New budget authority, $1,998,000,000.
(B) Outlays, $579,000,000.
Fiscal year 2010:
(A) New budget authority, $2,021,000,000.
(B) Outlays, $703,000,000.
Fiscal year 2011:
(A) New budget authority, $1,990,000,000.
(B) Outlays, $691,000,000.
(5) Natural Resources and Environment (300):
Fiscal year 2001:
(A) New budget authority, $28,833,000,000.
(B) Outlays, $26,361,000,000.
Fiscal year 2002:
(A) New budget authority, $30,381,000,000.
(B) Outlays, $28,652,000,000.
Fiscal year 2003:
(A) New budget authority, $31,263,000,000.
(B) Outlays, $30,368,000,000.
Fiscal year 2004:
(A) New budget authority, $32,249,000,000.
(B) Outlays, $31,506,000,000.
Fiscal year 2005:
(A) New budget authority, $33,091,000,000.
(B) Outlays, $32,365,000,000.
Fiscal year 2006:
(A) New budget authority, $33,965,000,000.
(B) Outlays, $33,281,000,000.
Fiscal year 2007:
(A) New budget authority, $34,767,000,000.
(B) Outlays, $34,126,000,000.
Fiscal year 2008:
(A) New budget authority, $35,691,000,000.
(B) Outlays, $34,903,000,000.
Fiscal year 2009:
(A) New budget authority, $37,064,000,000.
(B) Outlays, $36,194,000,000.
Fiscal year 2010:
(A) New budget authority, $38,111,000,000.
(B) Outlays, $37,190,000,000.
Fiscal year 2011:
(A) New budget authority, $39,137,000,000.
(B) Outlays, $38,190,000,000.
(6) Agriculture (350):
Fiscal year 2001:
(A) New budget authority, $31,790,000,000.
(B) Outlays, $29,154,000,000.
Fiscal year 2002:
(A) New budget authority, $26,265,000,000.
(B) Outlays, $24,593,000,000.
Fiscal year 2003:
(A) New budget authority, $26,507,000,000.
(B) Outlays, $24,924,000,000.
iscal year 2004:
(A) New budget authority, $26,562,000,000.
(B) Outlays, $25,120,000,000.
Fiscal year 2005:
(A) New budget authority, $26,406,000,000.
(B) Outlays, $24,915,000,000.
Fiscal year 2006:
(A) New budget authority, $25,452,000,000.
(B) Outlays, $23,853,000,000.
Fiscal year 2007:
(A) New budget authority, $24,083,000,000.
(B) Outlays, $22,509,000,000.
Fiscal year 2008:
(A) New budget authority, $22,723,000,000.
(B) Outlays, $21,134,000,000.
Fiscal year 2009:
(A) New budget authority, $21,921,000,000.
(B) Outlays, $20,441,000,000.
Fiscal year 2010:
(A) New budget authority, $21,553,000,000.
(B) Outlays, $20,174,000,000.
Fiscal year 2011:
(A) New budget authority, $21,703,000,000.
(B) Outlays, $20,319,000,000.
(7) Commerce and Housing Credit (370):
Fiscal year 2001:
(A) New budget authority, $2,516,000,000.
(B) Outlays, -$771,000,000.
Fiscal year 2002:
(A) New budget authority, $10,174,000,000.
(B) Outlays, $6,587,000,000.
Fiscal year 2003:
(A) New budget authority, $11,394,000,000.
(B) Outlays, $5,952,000,000.
Fiscal year 2004:
(A) New budget authority, $16,042,000,000.
(B) Outlays, $11,733,000,000.
Fiscal year 2005:
(A) New budget authority, $16,163,000,000.
(B) Outlays, $12,387,000,000.
Fiscal year 2006:
(A) New budget authority, $16,138,000,000.
(B) Outlays, $11,790,000,000.
Fiscal year 2007:
(A) New budget authority, $16,245,000,000.
(B) Outlays, $12,061,000,000.
Fiscal year 2008:
(A) New budget authority, $16,404,000,000.
(B) Outlays, $11,894,000,000.
Fiscal year 2009:
(A) New budget authority, $16,479,000,000.
(B) Outlays, $11,934,000,000.
Fiscal year 2010:
(A) New budget authority, $16,597,000,000.
(B) Outlays, $11,889,000,000.
Fiscal year 2011:
(A) New budget authority, $16,714,000,000.
(B) Outlays, $11,915,000,000.
(8) Transportation (400):
Fiscal year 2001:
(A) New budget authority, $62,130,000,000.
(B) Outlays, $51,681,000,000.
Fiscal year 2002:
(A) New budget authority, $64,965,000,000.
(B) Outlays, $56,167,000,000.
Fiscal year 2003:
(A) New budget authority, $62,392,000,000.
(B) Outlays, $60,521,000,000.
Fiscal year 2004:
(A) New budget authority, $64,154,000,000.
(B) Outlays, $62,662,000,000.
Fiscal year 2005:
(A) New budget authority, $65,907,000,000.
(B) Outlays, $64,225,000,000.
Fiscal year 2006:
(A) New budget authority, $67,794,000,000.
(B) Outlays, $65,702,000,000.
Fiscal year 2007:
(A) New budget authority, $69,637,000,000.
(B) Outlays, $66,577,000,000.
Fiscal year 2008:
(A) New budget authority, $71,490,000,000.
(B) Outlays, $67,775,000,000.
Fiscal year 2009:
(A) New budget authority, $73,377,000,000.
(B) Outlays, $69,221,000,000.
Fiscal year 2010:
(A) New budget authority, $76,412,000,000.
(B) Outlays, $70,588,000,000.
Fiscal year 2011:
(A) New budget authority, $78,652,000,000.
(B) Outlays, $72,183,000,000.
(9) Community and Regional Development (450):
Fiscal year 2001:
(A) New budget authority, $11,225,000,000.
(B) Outlays, $11,366,000,000.
Fiscal year 2002:
(A) New budget authority, $11,892,000,000.
(B) Outlays, $11,730,000,000.
Fiscal year 2003:
(A) New budget authority, $12,067,000,000.
(B) Outlays, $11,731,000,000.
Fiscal year 2004:
(A) New budget authority, $12,350,000,000.
(B) Outlays, $11,967,000,000.
Fiscal year 2005:
(A) New budget authority, $12,664,000,000.
(B) Outlays, $11,913,000,000.
Fiscal year 2006:
(A) New budget authority, $12,933,000,000.
(B) Outlays, $11,936,000,000.
Fiscal year 2007:
(A) New budget authority, $13,198,000,000.
(B) Outlays, $12,181,000,000.
Fiscal year 2008:

[[Page H1867]]

(A) New budget authority, $13,476,000,000.
(B) Outlays, $12,444,000,000.
Fiscal year 2009:
(A) New budget authority, $13,759,000,000.
(B) Outlays, $12,696,000,000.
Fiscal year 2010:
(A) New budget authority, $14,048,000,000.
(B) Outlays, $12,962,000,000.
Fiscal year 2011:
(A) New budget authority, $14,340,000,000.
(B) Outlays, $13,233,000,000.
(10) Education, Training, Employment, and Social Services
(500):
Fiscal year 2001:
(A) New budget authority, $76,951,000,000.
(B) Outlays, $69,850,000,000.
Fiscal year 2002:
(A) New budget authority, $81,234,000,000.
(B) Outlays, $76,742,000,000.
Fiscal year 2003:
(A) New budget authority, $82,805,000,000.
(B) Outlays, $81,479,000,000.
Fiscal year 2004:
(A) New budget authority, $84,386,000,000.
(B) Outlays, $83,574,000,000.
Fiscal year 2005:
(A) New budget authority, $87,122,000.000.
(B) Outlays, $85,819,000,000.
Fiscal year 2006:
(A) New budget authority, $89,233,000,000.
(B) Outlays, $87,924,000,000.
Fiscal year 2007:
(A) New budget authority, $91,327,000,000.
(B) Outlays, $89,955,000,000.
Fiscal year 2008:
(A) New budget authority, $93,501,000,000.
(B) Outlays, $92,115,000,000.
Fiscal year 2009:
(A) New budget authority, $95,780,000,000.
(B) Outlays, $94,341,000,000.
Fiscal year 2010:
(A) New budget authority, $98,113,000,000.
(B) Outlays, $96,654,000,000.
Fiscal year 2011:
(A) New budget authority, $100,517,000,000.
(B) Outlays, $99,017,000,000.
(11) Health (550):
Fiscal year 2001:
(A) New budget authority, $180,104,000,000.
(B) Outlays, $173,012,000,000.
Fiscal year 2002:
(A) New budget authority, $198,775,000,000.
(B) Outlays, $196,668,000,000.
Fiscal year 2003:
(A) New budget authority, $221,150,000,000.
(B) Outlays, $219,770,000,000.
Fiscal year 2004:
(A) New budget authority, $235,474,000,000.
(B) Outlays, $234,672,000,000.
Fiscal year 2005:
(A) New budget authority, $242,661,000,000.
(B) Outlays, $241,084,000,000.
Fiscal year 2006:
(A) New budget authority, $259,125,000,000.
(B) Outlays, $257,594,000,000.
Fiscal year 2007:
(A) New budget authority, $278,882,000,000.
(B) Outlays, $276,575,000,000.
Fiscal year 2008:
(A) New budget authority, $299,116,000,000.
(B) Outlays, $297,091,000,000.
Fiscal year 2009:
(A) New budget authority, $320,791,000,000.
(B) Outlays, $319,017,000,000.
Fiscal year 2010:
(A) New budget authority, $345,380,000,000.
(B) Outlays, $343,729,000,000.
Fiscal year 2011:
(A) New budget authority, $372,407,000,000.
(B) Outlays, $370,945,000,000.
(12) Medicare (570):
Fiscal year 2001:
(A) New budget authority, $217,531,000,000.
(B) Outlays, $217,708,000,000.
Fiscal year 2002:
(A) New budget authority, $229,179,000,000.
(B) Outlays, $229,121,000,000.
Fiscal year 2003:
(A) New budget authority, $244,838,000,000.
(B) Outlays, $244,596,000,000.
Fiscal year 2004:
(A) New budget authority, $271,378,000,000.
(B) Outlays, $271,579,000,000.
Fiscal year 2005:
(A) New budget authority, $306,158,000,000.
(B) Outlays, $306,079,000,000.
Fiscal year 2006:
(A) New budget authority, $326,564,000,000.
(B) Outlays, $326,298,000,000.
Fiscal year 2007:
(A) New budget authority, $363,686,000,000.
(B) Outlays, $363,901,000,000.
Fiscal year 2008:
(A) New budget authority, $393,686,000,000.
(B) Outlays, $393,578,000,000.
Fiscal year 2009:
(A) New budget authority, $424,278,000,000.
(B) Outlays, $423,993,000,000.
Fiscal year 2010:
(A) New budget authority, $458,957,000,000.
(B) Outlays, $459,194,000,000.
Fiscal year 2011:
(A) New budget authority, $497,379,000,000.
(B) Outlays, $497,366,000,000.
(13) Income Security (600):
Fiscal year 2001:
(A) New budget authority, $255,942,000,000.
(B) Outlays, $256,932,000,000.
Fiscal year 2002:
(A) New budget authority, $273,840,000,000.
(B) Outlays, $272,122,000,000.
Fiscal year 2003:
(A) New budget authority, $283,864,000,000.
(B) Outlays, $282,611,000,000.
Fiscal year 2004:
(A) New budget authority, $295,030,000,000.
(B) Outlays, $293,420,000,000.
Fiscal year 2005:
(A) New budget authority, $309,192,000,000.
(B) Outlays, $307,667,000,000.
Fiscal year 2006:
(A) New budget authority, $316,761,000,000.
(B) Outlays, $315,312,000,000.
Fiscal year 2007:
(A) New budget authority, $324,056,000,000.
(B) Outlays, $322,627,000,000.
Fiscal year 2008:
(A) New budget authority, $338,278,000,000.
(B) Outlays, $336,950,000,000.
Fiscal year 2009:
(A) New budget authority, $349,561,000,000.
(B) Outlays, $347,987,000,000.
Fiscal year 2010:
(A) New budget authority, $360,308,000,000.
(B) Outlays, $358,600,000,000.
Fiscal year 2011:
(A) New budget authority, $371,593,000,000.
(B) Outlays, $369,419,000,000.
(14) Social Security (650):
Fiscal year 2001:
(A) New budget authority, $9,805,000,000.
(B) Outlays, $9,805,000,000.
Fiscal year 2002:
(A) New budget authority, $11,004,000,000.
(B) Outlays, $11,003,000,000.
Fiscal year 2003:
(A) New budget authority, $11,733,000,000.
(B) Outlays, $11,733,000,000.
Fiscal year 2004:
(A) New budget authority, $12,496,000,000.
(B) Outlays, $12,496,000,000.
Fiscal year 2005:
(A) New budget authority, $13,308,000,000.
(B) Outlays, $13,308,000,000.
Fiscal year 2006:
(A) New budget authority, $14,207,000,000.
(B) Outlays, $14,207,000,000.
Fiscal year 2007:
(A) New budget authority, $15,168,000,000.
(B) Outlays, $15,168,000,000.
Fiscal year 2008:
(A) New budget authority, $16,241,000,000.
(B) Outlays, $16,241,000,000.
Fiscal year 2009:
(A) New budget authority, $17,483,000,000.
(B) Outlays, $17,483,000,000.
Fiscal year 2010:
(A) New budget authority, $18,878,000,000.
(B) Outlays, $18,878,000,000.
Fiscal year 2011:
(A) New budget authority, $20,388,000,000.
(B) Outlays, $20,388,000,000.
(15) Veterans Benefits and Services (700):
Fiscal year 2001:
(A) New budget authority, $46,675,000,000.
(B) Outlays, $45,926,000,000.
Fiscal year 2002:
(A) New budget authority, $51,512,000,000.
(B) Outlays, $50,921,000,000.
Fiscal year 2003:
(A) New budget authority, $53,801,000,000.
(B) Outlays, $53,408,000,000.
Fiscal year 2004:
(A) New budget authority, $56,161,000,000.
(B) Outlays, $55,744,000,000.
Fiscal year 2005:
(A) New budget authority, $60,317,000,000.
(B) Outlays, $59,847,000,000.
Fiscal year 2006:
(A) New budget authority, $59,863,000,000.
(B) Outlays, $59,368,000,000.
Fiscal year 2007:
(A) New budget authority, $59,345,000,000.
(B) Outlays, $58,853,000,000.
Fiscal year 2008:
(A) New budget authority, $63,407,000,000.
(B) Outlays, $62,971,000,000.
Fiscal year 2009:
(A) New budget authority, $64,981,000,000.
(B) Outlays, $64,570,000,000.
Fiscal year 2010:
(A) New budget authority, $66,973,000,000.
(B) Outlays, $66,555,000,000.
Fiscal year 2011:
(A) New budget authority, $69,063,000,000.
(B) Outlays, $68,632,000,000.
(16) Administration of Justice (750):
Fiscal year 2001:
(A) New budget authority, $30,577,000,000.
(B) Outlays, $30,003,000,000.
Fiscal year 2002:
(A) New budget authority, $32,431,000,000.
(B) Outlays, $31,436,000,000.
Fiscal year 2003:
(A) New budget authority, $32,545,000,000.
(B) Outlays, $32,809,000,000.
Fiscal year 2004:
(A) New budget authority, $35,330,000,000.
(B) Outlays, $35,543,000,000.
Fiscal year 2005:
(A) New budget authority, $36,420,000,000.
(B) Outlays, $36,347,000,000.
Fiscal year 2006:
(A) New budget authority, $37,466,000,000.
(B) Outlays, $37,036,000,000.
Fiscal year 2007:
(A) New budget authority, $38,543,000,000.
(B) Outlays, $38,013,000,000.
Fiscal year 2008:
(A) New budget authority, $39,665,000,000.
(B) Outlays, $39,152,000,000.
Fiscal year 2009:
(A) New budget authority, $40,822,000,000.
(B) Outlays, $40,292,000,000.
Fiscal year 2010:
(A) New budget authority, $42,021,000,000.
(B) Outlays, $41,483,000,000.
Fiscal year 2011:
(A) New budget authority, $43,284,000,000.
(B) Outlays, $42,728,000,000.
(17) General Government (800):
Fiscal year 2001:
(A) New budget authority, $16,307,000,000.
(B) Outlays, $16,065,000,000.
Fiscal year 2002:
(A) New budget authority, $16,496,000,000.
(B) Outlays, $16,193,000,000.
Fiscal year 2003:
(A) New budget authority, $16,651,000,000.
(B) Outlays, $16,493,000,000.
Fiscal year 2004:
(A) New budget authority, $17,082,000,000.
(B) Outlays, $16,978,000,000.
Fiscal year 2005:

[[Page H1868]]

(A) New budget authority, $17,560,000,000.
(B) Outlays, $17,201,000,000.
Fiscal year 2006:
(A) New budget authority, $18,068,000,000.
(B) Outlays, $17,641,000,000.
Fiscal year 2007:
(A) New budget authority, $18,609,000,000.
(B) Outlays, $18,144,000,000.
Fiscal year 2008:
(A) New budget authority, $18,791,000,000.
(B) Outlays, $18,445,000,000.
Fiscal year 2009:
(A) New budget authority, $19,377,000,000.
(B) Outlays, $18,882,000,000.
Fiscal year 2010:
(A) New budget authority, $19,968,000,000.
(B) Outlays, $19,437,000,000.
Fiscal year 2011:
(A) New budget authority, $20,599,000,000.
(B) Outlays, $20,048,000,000.
(18) Net Interest (900):
Fiscal year 2001:
(A) New budget authority, $275,467,000,000.
(B) Outlays, $275,467,000,000.
Fiscal year 2002:
(A) New budget authority, $259,162,000,000.
(B) Outlays, $259,162,000,000.
Fiscal year 2003:
(A) New budget authority, $252,364,000,000.
(B) Outlays, $252,364,000,000.
Fiscal year 2004:
(A) New budget authority, $247,310,000,000.
(B) Outlays, $247,310,000,000.
Fiscal year 2005:
(A) New budget authority, $240,115,000,000.
(B) Outlays, $240,115,000,000.
Fiscal year 2006:
(A) New budget authority, $235,642,000,000.
(B) Outlays, $235,642,000,000.
Fiscal year 2007:
(A) New budget authority, $232,136,000,000.
(B) Outlays, $232,136,000,000.
Fiscal year 2008:
(A) New budget authority, $227,484,000,000.
(B) Outlays, $227,484,000,000.
Fiscal year 2009:
(A) New budget authority, $221,933,000,000.
(B) Outlays, $221,933,000,000.
Fiscal year 2010:
(A) New budget authority, $214,899,000,000.
(B) Outlays, $214,899,000,000.
Fiscal year 2011:
(A) New budget authority, $207,328,000,000.
(B) Outlays, $207,328,000,000.
(19) Allowances (920):
Fiscal year 2001:
(A) New budget authority, $84,528,000,000.
(B) Outlays, $84,697,000,000.
Fiscal year 2002:
(A) New budget authority, -$103,548,000,000.
(B) Outlays, -$99,379,000,000.
Fiscal year 2003:
(A) New budget authority, -$6,115,000,000.
(B) Outlays, -$5,222,000,000.
Fiscal year 2004:
(A) New budget authority, -$6,268,000,000.
(B) Outlays, -$5,912,000,000.
Fiscal year 2005:
(A) New budget authority, -$6,423,000,000.
(B) Outlays, -$6,263,000,000.
Fiscal year 2006:
(A) New budget authority, -$6,580,000,000.
(B) Outlays, -$6,503,000,000.
Fiscal year 2007:
(A) New budget authority, -$6,744,000,000.
(B) Outlays, -$6,665,000,000.
Fiscal year 2008:
(A) New budget authority, -$6,908,000,000.
(B) Outlays, -$6,828,000,000.
Fiscal year 2009:
(A) New budget authority, -$7,079,000,000.
(B) Outlays, -$6,994,000,000.
Fiscal year 2010:
(A) New budget authority, -$7,251,000,000.
(B) Outlays, -$7,165,000,000.
Fiscal year 2011:
(A) New budget authority, -$7,429,000,000.
(B) Outlays, -$7,340,000,000.
(20) Undistributed Offsetting Receipts (950):
Fiscal year 2001:
(A) New budget authority, -$38,265,000,000.
(B) Outlays, -$38,265,000,000.
Fiscal year 2002:
(A) New budget authority, -$38,803,000,000.
(B) Outlays, -$38,803,000,000.
Fiscal year 2003:
(A) New budget authority, -$49,508,000,000.
(B) Outlays, -$49,508,000,000.
Fiscal year 2004:
(A) New budget authority, -$56,315,000,000.
(B) Outlays, -$56,315,000,000.
Fiscal year 2005:
(A) New budget authority, -$46,463,000,000.
(B) Outlays, -$46,463,000,000.
Fiscal year 2006:
(A) New budget authority, -$50,461,000,000.
(B) Outlays, -$50,461,000,000.
Fiscal year 2007:
(A) New budget authority, -$48,179,000,000.
(B) Outlays, -$48,179,000,000.
Fiscal year 2008:
(A) New budget authority, -$49,141,000,000.
(B) Outlays, -$49,141,000,000.
Fiscal year 2009:
(A) New budget authority, -$50,203,000,000.
(B) Outlays, -$50,203,000,000.
Fiscal year 2010:
(A) New budget authority, -$51,778,000,000.
(B) Outlays, -$51,778,000,000.
Fiscal year 2011:
(A) New budget authority, -$53,287,000,000.
(B) Outlays, -$53,287,000,000.

SEC. 103. RECONCILIATION IN THE SENATE.

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

SEC. 104. RECONCILIATION IN THE HOUSE.

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

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

(a) Findings.--The Senate finds the following:
(1) Unless and until the discretionary spending limit for
fiscal year 2002 (as set out in section 251(c) of the
Balanced Budget and Emergency Deficit Control Act of 1985) is
increased, aggregate appropriations which exceed the current
law limits would still be out of order in the Senate and
subject to a supermajority vote.
(2) Except for a necessary adjustment included in function
920 (to comply with section 312(b) of the Congressional
Budget Act of 1974), the functional totals contained in this
concurrent resolution envision a level of discretionary
spending for fiscal year 2002 as follows:
(A) For the discretionary category: $659,540,000,000 in new
budget authority and $647,780,000,000 in outlays.
(B) For the highway category: $28,489,000,000 in outlays.
(C) For the mass transit category: $5,275,000,000 in
outlays.
(D) For the conservation category: $1,760,000,000 in new
budget authority and $1,232,000,000 in outlays.
(3) To facilitate the Senate completing its legislative
responsibilities for the 1st Session of the 107th Congress in
a timely fashion, it is imperative that the Senate consider
legislation which establishes appropriate discretionary
spending limits for fiscal year 2002 through 2006 as soon as
possible.
(b) Adjustment to Allocations and Other Budgetary
Aggregates and Levels.--Whenever a bill or joint resolution
becomes law that increases the discretionary spending limit
for fiscal year 2002 set out in section 251(c) of the
Balanced Budget and Emergency Deficit Control Act of 1985,
the chairman of the Committee on the Budget of the Senate
shall increase the allocation called for in section 302(a) of
the Congressional Budget Act of 1974 (2 U.S.C. 633(a)) to the
appropriate Committee on Appropriations and shall also
appropriately adjust all other budgetary aggregates and
levels contained in this resolution.
(c) Senate Defense Firewall.--
(1) Definition.--In this subsection, for purposes of
enforcement in the Senate for fiscal year 2002, the term
``discretionary spending limit'' means--
(A) for the defense category, $325,070,000,000 in new
budget authority; and

[[Page H1869]]

(B) for the nondefense category, $336,230,000,000 in new
budget authority.
(2) Point of order in the senate.--
(A) In general.--After the adjustment to the section 302(a)
allocation to the Committee on Appropriations is made
pursuant to subsection (b) and except as provided in
subparagraph (B), it shall not be in order in the Senate to
consider any bill, joint resolution, amendment, motion, or
conference report that exceeds any discretionary spending
limit set forth in this subsection.
(B) Exception.--This paragraph shall not apply if a
declaration of war by Congress is in effect.
(3) Waiver and appeal.--This subsection may be waived or
suspended in the Senate only by an affirmative vote of three-
fifths of the Members, duly chosen and sworn. An affirmative
vote of three-fifths of the Members of the Senate, duly
chosen and sworn, shall be required in the Senate to sustain
an appeal of the ruling of the Chair on a point of order
raised under this subsection.

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

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

Subtitle B--Reserve Funds

SEC. 211. RESERVE FUND FOR MEDICARE.

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

SEC. 212. RESERVE FUND FOR FAMILY OPPORTUNITY ACT.

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

SEC. 213. RESERVE FUND FOR AGRICULTURE .

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

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

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

SEC. 215. TECHNICAL RESERVE FUND FOR STUDENT LOANS.

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

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

(a) In General.--Subject to subsection (b), if the
Committee on Finance of the Senate or the Committee on Energy
and Commerce or Committee on Ways and Means of the House of
Representatives report a bill or joint resolution, or an
amendment thereto is offered, or a conference report thereon
is submitted, that provides health insurance for the
uninsured (including a measure providing for tax deductions
for the purchase of health insurance for, among others,
moderate income individuals not receiving

[[Page H1870]]

health insurance from their employers), the appropriate
chairman of the Committee on the Budget may revise committee
allocations for that committee and other appropriate
budgetary aggregates and allocations of new budget authority
(and the outlays resulting therefrom) and may revise the
revenue aggregates and other appropriate budgetary aggregates
and allocations in this resolution by the amount provided by
that measure for that purpose, but not to exceed
$28,000,000,000 in new budget authority and outlays for the
period of fiscal years 2002 through 2011 or $28,000,000,000
in revenues for the period of fiscal years 2002 through 2011
or any combination of budget authority and outlays or
revenues as long as the sum of all revisions does not exceed
$28,000,000,000. This resolutions allows these funds to be
spent over the time period of fiscal years 2002 through 2004.
(b) Surplus.--Legislation described in subsection (a) may
not, when taken together with all other previously-enacted
legislation (except for legislation enacted pursuant to
section 211), reduce the on-budget surplus below the level of
the Medicare Hospital Insurance Trust Fund surplus in any
fiscal year covered by this resolution.

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

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

SEC. 218. STRATEGIC RESERVE FUND IN THE HOUSE.

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

Subtitle C--Miscellaneous Provisions

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

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

SEC. 222. EXERCISE OF RULEMAKING POWERS.

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

TITLE III--SENSE OF THE SENATE AND CONGRESS PROVISIONS

Subtitle A--Sense of the Senate

SEC. 301. SENSE OF THE SENATE ON CONSERVATION.

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

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

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

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

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

[[Page H1871]]

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

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

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

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

SEC. 306. STRENGTHENING OUR NATIONAL FOOD SAFETY
INFRASTRUCTURE.

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

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

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

Subtitle B--Sense of the Congress

SEC. 311. ASSET BUILDING FOR THE WORKING POOR.

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

SEC. 312. FEDERAL FIRE PREVENTION ASSISTANCE.

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

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

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

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

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

SEC. 315. FEDERAL EMPLOYEE PAY.

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

[[Page H1872]]

be adjusted at the same time, and in the same proportion, as
are rates of compensation for members of the uniformed
services.

SEC. 316. SALES TAX DEDUCTION.

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

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

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

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

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

Displays and Amounts

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

Aggregates and Function Levels

[[Page H1873]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.001

[[Page H1874]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.002

[[Page H1875]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.003

[[Page H1876]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.004

[[Page H1877]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.005

[[Page H1878]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.006

[[Page H1879]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.007

[[Page H1880]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.008

[[Page H1881]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.009

[[Page H1882]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.010

[[Page H1883]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.011

[[Page H1884]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.012

[[Page H1885]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.013

[[Page H1886]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.014

[[Page H1887]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.015

[[Page H1888]]

Economic Assumptions

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

[[Page H1889]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.016

[[Page H1890]]

Functions and Revenues

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

function 050: national defense

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

function 150: international affairs

Major Programs in Function.--Under current law, spending
for Function 150, International Affairs, will total $22.4
billion in BA and $19.7 billion in outlays for 2001. This
function includes funding for the operation of the foreign
affairs establishment including embassies and other
diplomatic missions abroad, foreign aid loan and technical
assistance activities in developing countries, security
assistance to foreign governments, activities of the Foreign
Military Sales Trust Fund, U.S. contributions to
international financial institutions and the United Nations,
the Export-Import Bank and other trade promotion activities,
and refugee assistance.
House Resolution.--The resolution fully funds the
President's requested levels of $23.9 billion in budget
authority [BA] and $19.6 billion in outlays in fiscal year
2002, an increase of 6.4 percent in BA compared with fiscal
year 2001. The function totals are $123.8 billion in BA and
$102.0 billion in outlays over 5 years, and $264.2 billion in
BA and $219.7 billion in outlays over 10 years. The levels
fully fund the President's request and accommodate his
proposal to increase the Administration of Foreign Affairs
funding by $888 million above the 2001 level to a total of
$5.7 billion for fiscal year 2002, and his request to
increase military assistance to Israel by $60 million. In
addition, to maintain and expand programs to stem the flow of
cocaine and heroin from Colombia and its Andean neighbors,
the budget assumes the President's $624-million increase for
international narcotics control and law enforcement. The
resolution also assumes sufficient resources for the Tropical
Forest Conservation Act [TTCA].
Senate Amendment.--The Senate amendment provides $24.1
billion in BA and $19.8 billion in outlays in 2002, and
$265.4 billion in BA and $220.9 billion in outlays over 2002-
2011. These amounts include full funding for the President's
request, which for 2002 constitutes a $1.5 billion increase
in BA over 2001--a 6.7 percent nominal increase. The

[[Page H1891]]

Senate amendment also reflects the Senate's adoption of a
floor amendment to increase the President's request by $200
million in BA in 2002 and by $500 million in BA in 2003--with
commensurate outlays--for the purpose of assisting the
response of needy countries to the international HIV/AIDS
pandemic. The Senate also adopted an amendment regarding
conservation that affected several budget functions,
including the addition of $50 million in BA in every year
over the 2002-2011 period in Function 150.
Conference Agreement.--The Conference Agreement totals
$23.2 billion in BA and $19.1 billion in outlays for 2002.
For 2002-2011, the Conference Agreement totals $256.6 billion
in BA and $213.3 billion in outlays, a reduction of $7.6
billion in BA below the request and the House Amendment. The
BA and outlays for International Affairs equal the amounts of
CBO's inflated baseline for 2002-2011, plus the outlays
needed in 2002 to address the payment of arrearages to the UN
discussed below.
Regarding discretionary spending, the Conferees strongly
support Secretary of State Powell's proposals to reinvigorate
the US foreign policy establishment and to expand some
international programs. The Senate expressed this support in
the form of expanding even further proposed programs to
address the HIV/AIDS epidemic in regions, such as Africa.
Regarding the payment of arrearages to the United Nations,
the conferees recognize that Congress has appropriated funds
for the payment of arrears to the UN and related agencies in
1999 and 2000. Those funds have not been obligated because
not all of the reforms required by authorizing statute have
been met, in particular the requirement that the United
States' assessment for contributions to international
peacekeeping activities be reduced to no more than 25 percent
of the total. Recognizing the substantial reforms that have
been negotiated, the President has proposed legislation, not
subject to PAYGO, that would release the funds for
obligation. The legislative proposal would increase
outlays by $582 million in 2001 and $244 million in 2002.
This resolution accommodates the increased spending in its
estimates of outlays from prior year's appropriations. The
conferees direct that if the legislative proposal is
included in authorizing legislation, the cost of such
legislation up to the amounts included in the fiscal year
2001 and 2002 allocations of the appropriations committee
shall not be charged against the allocation of the
authorizing committee for purposes of enforcing this
resolution.

function 250: general science, space and technology

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

FUNCTION 270: ENERGY

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

FUNCTION 300: NATURAL RESOURCES AND THE ENVIRONMENT

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

[[Page H1892]]

outlays in 2002 to fully fund the Conservation Spending Cap,
$44 million in BA in 2002 for water system improvements, $1.3
billion in BA and outlays in 2002 for agriculture
conservation programs, $100 million in BA in 2002 to reduce
greenhouse gases, $800 million in BA in 2002 for wastewater
infrastructure improvements, and $100 million in BA in 2002
for the Bureau of Reclamation construction account.
The Senate amendment assumes mandatory spending of $350
million in BA and outlays each year over the 2003-2011 period
to address agricultural conservation needs.
Conference Agreement.--The Conference Agreement assumes
$30.4 billion in BA and $28.7 billion in outlays in 2002, and
$345.7 billion in BA and $336.8 billion in outlays over the
2002-2011 period. The Conference Agreement accepts the Senate
position on the extension of the recreational fee
demonstration program. The Conference Agreement assumes
mandatory agriculture spending of $350 million in BA and
outlays in 2002. It also assumes a reserve fund of $350
million per year in BA and outlays over the 2003-2011 period
to be allocated to the Agriculture Committee for conservation
programs.

FUNCTION 350: AGRICULTURE

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

FUNCTION 370: COMMERCE AND HOUSING CREDIT

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

FUNCTION 400: TRANSPORTATION

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

[[Page H1893]]

and $645.8 billion in outlays. The Senate amendment
assumes the President's budget plus a Senate adopted
amendment to add $250 million in BA and outlays for the
Coast Guard in 2002.
Conference Agreement.--The Conference Agreement does not
revise the 2001 levels. For 2002, the resolution provides
$65.0 billion in BA and $56.2 billion in outlays. Over 10
years, it provides $694.8 billion in BA and $655.6 billion in
outlays.

function 450: community and regional development

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

FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT AND SOCIAL SERVICES

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

FUNCTION 550: HEALTH

Major Programs in Function.--Under current law, spending
for Function 550, Health, will total $180.1 billion in BA and
$173.0 billion in outlays for 2001. The major programs in
this function include Medicaid, the State Children's Health
Insurance Program, health benefits for federal workers and
retirees, the National Institutes of Health, the Food and
Drug Administration, the Health Resources Services
Administration, Indian Health Services, the Centers for
Disease Control and Prevention, and the Substance Abuse and
Mental Health Services Administration.
House Resolution.--The resolution establishes levels of
$204.0 billion in BA and $201.1 billion in outlays in fiscal
year 2002, an increase of 11.7 percent in BA compared with
fiscal year 2001.
The function totals are $1.20 trillion in BA and $1.19
trillion in outlays over 5 years, and $2.86 trillion in BA
and $2.84 trillion in outlays over 10 years. Funding in the
resolution accommodates the President's proposal to double
the National Institutes of Health [NIH] 1998 funding level of
$13.6 billion by 2003. To accomplish this, the 2002 budget
assumes $23.1 billion for NIH, a $2.8 billion increase above
the 2001 level. To strengthen the health care safety net, the
budget assumes the President's $124-million increase for
community health centers. The budget also assumes $8.3
billion over 10 years for the enactment of H.R. 600, the
Family Opportunity Act of 2001. Under the Act, States would
have the option to expand Medicaid coverage for children with
special needs, allowing families of disabled children with
the opportunity to purchase coverage under the Medicaid
program for such children.
Finally, Function 550 assumes $43.1 billion (fiscal years
2002-2005) of the President's proposed Medicare reform,
including the Immediate Helping Hand Prescription Drug Plan.
(The costs for fiscal years 2006 through 2011 are reflected
in Function 570.) The resolution also assumes the outlay
effect of the President's proposed refundable health care tax
credits, and the impact of the extension of an OBRA 1990
provision limiting Department of Veterans Affairs [VA]
pensions for Medicaid recipients in nursing homes.
Senate Amendment.--The Senate amendment revises 2001 BA and
outlays by $2.5 billion for the President's Immediate Helping
Hand prescription drug program for seniors. The amendment
sets forth $216.1 billion in BA and $213.2 billion in outlays
in 2002, and $2,938.3 billion in BA and $2,914.4 billion in
outlays over 2002-2011.

[[Page H1894]]

The Senate amendment as introduced assumed the President's
budget for both mandatory and discretionary spending. The
following provisions were added through floor amendments. For
mandatory spending, an additional $28 billion was added over
2002-2004 for health spending for the uninsured. A reserve
fund of $200 million in 2002 and $7.9 billion over 10 years
was included for the Family Opportunity Act. In discretionary
spending, an additional $700 million was assumed for NIH
spending in 2002. The Indian Health Service was increased by
$67.3 billion over 10 years. Budget authority for the FDA was
increased by $40 million in 2002 and $400 million over 10
years. Amendments were adopted to increase funding for
graduate medical education at children's hospitals by $50
million in 2002 and to provide an additional $136 million in
2002 for both graduate medical education and consolidated
health centers.
Conference Agreement.--The Conference Agreement does not
revise the 2001 levels. For 2002, the resolution provides
$198.8 billion in BA and $196.7 billion in outlays. Over 10
years, it provides $2,773.8 billion in BA and $2,757.1
billion in outlays.
Under the Conference Agreement, funding for the President's
Immediate Helping Hand prescription drug proposal ($43.1
billion over 2002-2005 plus an additional $2.5 billion in
2001) was moved to Function 570 (Medicare). The Conference
Agreement includes a reserve fund for the Family Opportunity
Act of $227 million in 2002 and $8.3 billion over 10 years.
The function totals also include a reserve fund of $28
billion over 10 years for additional health spending for the
uninsured; the budget levels and aggregates in this function
assume that these funds will be spent over the 2002-2004
period. This reserve fund can be used for either direct
spending or revenue changes associated with legislation to
improve health insurance coverage. The Conference
Agreement also assumes Medicaid Upper Payment Limit
savings of $11.7 billion over 10 years.

FUNCTION 570: MEDICARE

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

FUNCTION 600: INCOME SECURITY

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

FUNCTION 650: SOCIAL SECURITY

Major Programs in Function.--Under current law, spending
for Function 650, Social Security, will total $435.2 billion
in BA and $433.1 billion in outlays for 2001. This function
includes Social Security benefits and administrative
expenses. Under provisions of the Budget Enforcement Act,
Social Security tust funds are off-budget. The figures below
reflect the on budget portions of this function, primarily
payments from the general fund to the trust funds to credit
the trust funds for income taxes collected on Social Security
benefits. Both on-budget and off-budget spending are shown,
however, in the summary tables contained in the statement of
managers accompanying the Conference Agreement.
House Resolution.--For on-budget spending in this function,
the resolution establishes levels of $11.0 billion in budget
authority [BA] and outlays in fiscal year 2002, an increase
of 12.2 percent in BA compared with fiscal year 2001. The on-
budget function totals are.$62.8 billion in BA and $62.7
billion in outlays over 5 years, and $150.9 billion in BA and
outlays over 10 years. The resolution supports the
President's approach to Social Security reform through the
following specific measures:
--It assumes provisions of the Social Security and Medicare
Lock-Box Act of 2001 (H.R.

[[Page H1895]]

2), recently passed by the House, which prohibits using
Social Security surpluses for any purpose other than debt
reduction or Social Security reform.
--It assumes the President's proposal to provide $7.7
billion for the SSA, an increase of $456 million, or 6.3
percent, above fiscal year 2001. The increase will allow SSA
to process 100,000 more initial disability claims in 2002
than in 2001.
--It makes no changes in current Social Security benefits
or taxes.
Senate.Amendment.--The Senate amendment does not revise
2001 on-budget totals of $9.8 billion in BA and outlays. For
2002, the resolution assumes $10.9 billion in both BA and
outlays. Over 10 years, the resolution provides $140.0
billion in both BA and outlays.
The President's budget assumes no changes to Social
Security benefits. Indirectly, however, the tax cut proposal
would decrease both on-budget spending and the trust fund
surplus. The President's tax proposal would-reduce marginal
income rates, thereby decreasing the amount of income taxes
paid on Social Security benefits. This reduces on-budget
payments from the general fund to the trust funds to credit
the trust funds for income taxes paid on Social Security
benefits by $11 billion over 10 years. The difference between
the House resolution and the Senate amendment is that the
House holds the Social Security trust funds harmless for the
impact of the tax cut.
Conference Agreement.--The Conference Agreement does not
revise 2001 on-budget totals. The Senate recedes to the House
and agrees to hold the trust funds harmless for the impact of
any tax cuts resulting from this agreement. For 2002, the
Conference Agreement assumes $11.0 billion in both BA and
outlays. Over 10 years, it provides $150.9 billion in BA and
$150.9 billion in outlays.

FUNCTION 700: VETERANS BENEFITS AND SERVICES

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

FUNCTION 750: ADMINISTRATION OF JUSTICE

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

FUNCTION 800: GENERAL GOVERNMENT

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

FUNCTION 900: NET INTEREST

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

FUNCTION 920: ALLOWANCES

Major Programs in Function--Under current law, spending for
Function 920, Allowances, will total -$0.5 billion in BA and
-$0.3 billion in outlays for 2001. This function usually
displays the budgetary effects of proposals that cannot be
easily distributed across other budget functions. In the case
of 2001, it reflects the 0.22% across-the-board cut.that was
enacted in the Omnibus Consolidated and Emergency
Supplemental Appropriations for Fiscal Year 2001. But CBO
could not display those cuts by account and by function until
the Administration could display how the cuts would be
implemented in the release of the full President's budget
request.
In past years, Function 920 has also included total savings
or costs from proposals associated with emergency spending or
proposals contingent on possible future events that have
uncertain chances of occurring. Most recently, in the Senate
amendment and Conference Agreement on budget resolutions for
both 2001 and 2002, the figures expressed in the budget
resolution text (as well as the summary tables) for all other
budget functions reflect the total level of discretionary
spending contemplated by the budget resolution (e.g., as
described in section 203 of the

[[Page H1896]]

Conference Agreement on the 2002 budget). These levels are
higher than the statutory cap on discretionary spending
in.place for those years. But because a budget resolution
would be out of order in the Senate if it contains a level of
discretionary spending higher than the statutory cap, the
figures in the budget resolution text in Function 920 have
had to reflect a negative entry that reduces the net level of
discretionary spending from the contemplated level (as
aggregated across all other budget functions) to the
statutory level. The summary tables, however, omit this
negative entry for Function 920 so that their aggregates
reflect the levels ultimately intended by the resolution.
House Resolution--For discretionary spending, the budget
resolution calls for $5.0 billion in budget authority [BA]
and $1.8 billion in outlays in fiscal year 2002. The 5-year
spending totals are $29.1 billion in BA and $22.4 billion in
outlays; and the 10-year totals are $64.0 billion in BA and
$55.5 billion outlays. There is no mandatory spending in this
function.
The funds identified constitute primarily a set-aside fund
for unanticipated emergency needs during the fiscal
Senate Amendment.--The Senate amendment revises the 2001
levels to $80.5 billion in BA and $80.7 billion in outlays in
2001, reflecting the Senate's adoption of an amendment to
further increase a tax refund for that year. For 2002, the
resolution sets forth -$6.1 billion in BA and -$8.6 billion
in outlays. The resolution provides -$15.9 billion in BA and
-$23.1 billion in outlays over 2002-2010. These figures (as
shown in the summary tables) reflect the effect of 13
amendments adopted by the Senate that sought to suggest an
increase in spending in other functions and that appeared to
``offset'' such increased spending by bookkeeping the same
amount with a negative value in Function 920. These figures
do not include the entry necessary to reduce the overall
discretionary level to the statutory cap.
Conference Agreement.--The Conference Agreement revises the
2001. levels to $84.5 billion in BA and $84.7 billion in
outlays. For 2002, the resolution provides -$0.7 billion in
BA and -$0.6 billion in outlays. Over 10 years, it provides
-$7.2 billion in BA and -$7.7 billion in 23 outlays.
Regarding the language adopted by the Senate amendment
(included in the resolution text setting forth levels for
this function) that directed how the tax rebate for 2001 was
to be provided, the Senate receded to the House.

FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS

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

Revenues

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

Debt Levels

Debt held by the public peaked at $3.773 trillion in 1997.
At the end of 2001, debt held by the public is projected to
be $3.243 trillion, $530 billion lower than just four years
ago. This is a reduction of 14 percent from peak levels.
The table on the following page shows the levels of debt
held by the public resulting from the policies assumed in the
Conference Agreement. The policies assumed in the Conference
Agreement result in a reduction in debt in every year through
2011 and total debt reduction of $2.425 trillion from the end
of 2001 through the end of 2011. Debt held by the public
falls to 4.8 percent of GDP, its lowest level since 1916,
prior.to World War 1.
The Conference Agreement proposals result in retiring the
maximum amount of public debt that can reasonably be retired.
Under the budget resolution, the debt remaining in 2010 and
2011 is considered (by CBO's estimates) to be the minimum
debt level. It consists mostly of marketable bonds that will
not have matured and that will be too expensive to buy back,
savings bonds, and special bonds for State and local
governments.

2002 Budget Resolution

[$ billions]

Debt Held by the Public; 2001--3,243.2, 2002--3,037.9;
2003--2,810.7; 2004--2,563.6; 2005--

[[Page H1897]]

2,303.1; 2006--2,022.5; 2007--1,702.9; 2008--1,350.0; 2009--
947.3; 2010--878.0; 2011--818.0.

Reconciliation Instructions

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

Allocations

As required in section 302 of the Budget Act, the joint
statement of the managers includes an allocation, based on
the Conference Agreement, of total budget authority and total
budget outlays among each of the appropriate House and Senate
committees.
The allocations are as follows:

[[Page H1898]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.017

[[Page H1899]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.018

[[Page H1900]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.019

[[Page H1901]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.020

[[Page H1902]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.021

[[Page H1903]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.022

[[Page H1904]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.023

[[Page H1905]]

[GRAPHIC] [TIFF OMITTED] TH03MY01.024

[[Page H1906]]

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

Rulemaking and Budgetary Procedures

enforcement procedures

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

Commerce, Justice, State
Patent and Trademark Office (13 1006 01 376)
Legal Activities and U.S. Marshals, Antitrust Division (15
0319 01 752)
U.S. Trustee System (15 5073 02 752)
Federal Trade Commission (29 0100 01 376)
Interior
Elk Hills (89 5428 02 271)
Labor, Health and Human Services, Education
Employment and Training Administration (16 0174 01 504)
Health Resources (75 0350 01 551)
Low Income Home Energy Assistance Program (75 1502 01 609)
Child Care Development Block Grant (75 1515 01 709)
Elementary and Secondary Education [reading excellence] (91
0011 01 501)
Education for the disadvantaged (91 0900 01 501)
School Improvement (91 1000 01 501)
Children and Family Services [head start] (75 1536 01 506)
Special Education (91 0300 01 501)
Vocational and Adult Education (91 0400 01 501)
Treasury, General Government
Payment to Postal Service (18 1001 01 372)
Federal Building Fund (47 4542 04 804)
Veterans, Housing and Urban Development
Section 8 Renewals (86 0319 01 604)

The Conference Agreement adopts the definition of ``advance
appropriation'' that was used in section 203(b)(2) of last
year's budget resolution (which was the provision applicable
in the House of Representatives). Both the overall cap for
fiscal year 2002 (with the specified accounts) and the
prohibition (and single exception) for subsequent fiscal
years will be enforced in the house by points of order. This
limitation is enforced by points of order, which may be
raised against advance appropriations not falling within the
exception. The effect of a point of order under this section,
if sustained by the Chair, is to cause the appropriation(s)
to be stricken from the bill or joint resolution. The bill
itself, however, continues to be considered.

[[Page H1907]]

Section 202: Restrictions on Advance Appropriations--Senate
Section 201(a) of the Conference Agreement adopts a
limitation on advance appropriations similar to the approach
taken in last year's budget resolution. The Conference
Agreement prohibits any advance appropriation for 2003 and
any year thereafter with two exceptions: (1) advance
appropriations may be provided for the accounts in the
appropriation bills listed below, provided that their sum
does not exceed $23.159 billion in budget authority for 2003
and (2) advance appropriations may be provided for the
Corporation for Public Broadcasting.
Accounts Identified for Advance Appropriations:

Commerce, Justice, State
Patent and Trademark Office (13 1006 01 376)
Legal Activities and U.S. Marshals, Antitrust Division (15
0319 01 752)
U.S. Trustee System (15 5073 02 752)
Federal Trade Commission (29 0100 01 376)
Interior
Elk Hills (89 5428 02 271)
Labor, Health and Human Services, Education
Employment and Training Administration (16 0174 01 504)
Health Resources (75 0350 01 551)
Low Income Home Energy Assistance Program (75 1502 01 609)
Child Care Development Block Grant (75 1515 01 609)
Elementary and Secondary Education [reading excellence] (91
0011 01 501)
Education for the disadvantaged (91 0900 01 501)
School Improvement (91 1000 01 501)
Children and Family Services [head start] (75 1536 01 506)
Special Education (91 0300 01 501)
Vocational and Adult Education (91 0400 01 501)
Treasury, General Government
Payment to Postal Service (18 1001 01 372)
Federal Building Fund (47 4542 04 804)
Veterans, Housing and Urban Development
Section 8 Renewals (86 0319 01 604)

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

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

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

2002 Budget Resolution

($ billions)

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

[[Page H1908]]

Reserve Funds

Reserve funds are special procedures which permit the
consideration of specified legislation by making available
the resources that are assumed within the aggregate levels of
the budget resolution, but are not initially allocated to the
appropriate committee of jurisdiction. In general, such
provisions provide that upon the reporting of the legislation
by the appropriate committee, the Chairmen of the Committees
on the Budget may adjust the appropriate allocations to
accommodate the legislation provided that all the terms of
the reserve fund have been satisfied. The Chairmen intend to
make reserve fund adjustments only for legislation reported
by the appropriate committee. Subtitle B of Title II of the
Conference Agreement contains nine reserve funds.
House resolution
Section 6: Strategic Reserve
Section 6 establishes a reserve fund for Department of
Defense spending following the President's National Defense
Review and a potential reauthorization of the Federal
Agriculture Improvement Act of 1996. It could also
accommodate other legislation. In order to be eligible for
adjustments under this section, the legislation must be
reported before July 11, 2001.
Section 7: Supplemental Reserve for Medicare
Section 7 establishes a reserve fund to accommodate a
potentially more expensive Medicare bill than was reflected
in the budget resolution. The Budget Committee chairman is
authorized to make the adjustment for reconciliation
legislation that provides for Medicare reform and
prescription drug coverage. The Budget Committee chairman may
increase the 302(a) allocations to the appropriate committees
of jurisdiction by the amount of the Congressional Budget
Office [CBO] reestimate of the cost of the President's
Medicare plan or an alternative plan submitted by the Ways
and Means and Commerce Committees. As a further limit on the
cost of the bill, the adjustment under this section may not
cause the on-budget surplus in the budget resolution to be
less than $36 billion in fiscal year 2002 and comparable
levels in fiscal years 2003 through 2010.
Section 8: Reserve for FY 2001
Section 8 establishes a reserve fund for fiscal year 2001.
The Chairman of the Budget Committee is authorized to make
adjustments for Department of Defense shortfalls, emergency
agricultural assistance, and other measures. It also limits
the amount of the adjustments to the amount the bill exceeds
the Committee's allocation. The adjustments may also not
cause the on-budget surplus to be less than $29 billion in
fiscal year 2001.
Section 9: Reserve for Education
Section 9 establishes a reserve fund to allow additional
spending for programs authorized by the Individuals with
Disabilities Education Act (IDEA) in fiscal year 2001. It
permits the Budget Committee chairman to increase the
allocation when an appropriation increases spending for IDEA
above the baseline level of $6.37 billion. The adjustment may
not exceed $1.25 billion.
Section 10: Reserve for Additional Tax Cuts and Debt
Reduction
Section 10 permits the budget resolution to be adjusted to
accommodate a larger tax cut or debt reduction if the surplus
estimates increase in the Congressional Budget Office update
of its budget and economic forecast for any fiscal years 2001
through 2011. If the estimate of the on-budget surplus
increases, the chairman of the Budget Committee may increase
the tax cut or reduce the debt levels by up to the amount of
the increase in the surplus.
Senate amendment
Section 203: Reserve fund for prescription drugs and
Medicare reform in the Senate
The Senate amendment contains language creating a reserve
fund for Medicare reform and a prescription drug benefit.
This reserve fund replaced the language in the initial
substitute amendment offered by Senator Domenici and was
added by an amendment offered by Senator Grassley. The Senate
amendment permits budget resolution levels and committee
allocation to be adjusted for legislation reported from
Senate Committee on Finance that reforms Medicare and
improves access to prescription drugs for beneficiaries. The
adjustments may not exceed the Congressional Budget Offices's
cost estimate of either a plan submitted by the President or
a comparable plan submitted by the Chairman of the Committee
on Finance and in no case may total spending exceed $300
billion for the period of fiscal years 2002 through 2011.
Note that the aggregates and function levels in the Senate
amendment assume only $153 billion (of the potential $300
billion) over ten years.
Section 206: Reserve fund for Medicare payments to home
health agencies
The Senate amendment contains language creating a reserve
fund to restore Medicare payments to home health agencies.
This reserve fund was added by an amendment offered by
Senator Collins. The Senate amendment permits budget
resolution levels and committee allocation to be adjusted for
legislation reported from Senate Committee on Finance that
repeals the scheduled 15% reduction in home health payments.
Adjustments may not exceed $4 billion for the period of
fiscal years 2002 through 2006 and $13.7 billion for the
period of fiscal years 2002 through 2011. In addition, no
adjustments may be made if the cost of such legislation,
taken together with all previously enacted legislation would
reduce the on-budget surplus before the level of the Medicare
HI Trust Fund surplus for any fiscal year covered by this
budget resolution. Note that the function levels and
aggregates in the Senate amendment assume the reductions
would have gone into effect.
Section 208: Reserve fund for the payment of retired pay
and compensation to disabled military retirees
The Senate amendment contains language creating a reserve
fund to provide for the payment of retired pay and veterans'
disability benefits to disabled military retirees. This
reserve fund was added by an amendment offered by Senator
Reid. The Senate amendment permits budget resolution levels
and committee allocation to be adjusted for legislation
reported from Senate Committee on Armed Services (and the
appropriate committee of the House of Representatives) that
funds the payment of full retired pay and veterans'
disability benefits to disabled military retirees. The
amendment does not, however, make any provision for the
additional $14.4 billion in discretionary spending that the
Congressional Budget Office has estimated would also be
required to fully fund these benefits. Adjustments may not
exceed $2.9 billion for fiscal year 2002 or $40 billion for
the period of fiscal years 2002 through 2011. In addition, no
adjustment may be made if the sum of the cost of this
legislation taken together with previously enacted
legislation would reduce the level of the Medicare Hospital
Insurance trust fund for any fiscal year covered by the
budget resolution.
Section 209: Reserve fund for refundable tax credits
The Senate, amendment contains language which in effect
provides ``fungibility'' between outlays and revenues in a
reconciliation tax legislation. This provision was added by
an amendment offered by Senator Bingaman. The Senate
amendment permits budget resolution levels, committee
allocation, and reconciliation instruction to be adjusted for
legislation reported from the Senate Committee on Finance
that provides refundable tax credits. Adjustments are limited
such that the sum of the spending increase and revenue
reductions must not exceed the total amount of the
reconciliation instruction. This will have the same effect as
the ``fungibility'' language set out in section 310(c) of the
Budget Act--and is superfluous in this case since the
reconciliation instruction in the Senate amendment to Senate.
Finance contains an outlay component.
Section 212: Reserve fund for Family Opportunity Act
The Senate amendment contains a reserve fund to facilitate
the consideration of the Family Opportunity Act in the
Senate. This reserve fund was added by an amendment offered
by Senator Grassley. The Senate amendment permits budget
resolution levels and committee allocation to be adjusted for
legislation reported from Senate Committee on Finance that
expands Medicaid coverage for children with special needs to
permit their parents to purchase such coverage. Adjustments
may not exceed $200 million for fiscal year 2002 or $7.9
billion for the period of fiscal years 2002 through 2011. In
addition, no adjustment may be made if the sum of the cost of
this legislation taken together with previously enacted
legislation would reduce the level of the Medicare Hospital
Insurance trust fund for any fiscal year covered by the
budget resolution.
Section 213: Reserve fund for Veterans' education
The Senate amendment contains a reserve fund to provide
additional resources for veterans' education benefits. This
reserve fund was added by an amendment offered by Senator
Collins. The Senate amendment permits budget resolution
levels and committee allocation to be adjusted for
legislation reported from Senate Committee on Veterans'
Affairs (and the appropriate committee of the House of
Representatives) that increases the basic monthly benefit
under the G.I. bill. Adjustments may not exceed $775 million
for fiscal year 2002 or $4.3 billion for the period of fiscal
years 2002 through 2066 or. $.9.9 billion for the period of
fiscal years 2002 through 2011. In addition, no adjustment
may be made if the sum of the cost of this legislation taken
together with previously enacted legislation would reduce the
level of the Medicare Hospital Insurance trust fund for any
fiscal year covered by the budget resolution.
Section 214: Reserve fund for payments in lieu of taxes
The Senate amendment contains a reserve fund to provide
additional resources for payments in lieu of taxes and for
refuge revenue sharing. This reserve fund was added by an
amendment offered by Senator Bingaman. The Senate amendment
permits budget resolution levels and committee allocation to
be adjusted for legislation reported from Senate Committee on
Energy and Natural Resources that fully funds payments in
lieu of taxes for entitlement lands under chapter 69 of title
31 of the U.S. Code. Adjustments may not exceed $3.53 million
for fiscal year 2002 or $3.709 billion for the period of
fiscal years 2002 through 2011. In addition, no adjustment
may be made if the sum of the cost of this legislation taken
together with previously enacted legislation would reduce the
level of the Medicare Hospital Insurance trust fund for any
fiscal year covered by the budget resolution.

[[Page H1909]]

Conference agreement
Section 211: Medicare Reserve Fund
Section 211 of the Conference Agreement is in two parts.
Section (a) retains the language from the House and Senate
resolutions to accommodate Medicare reform and prescription
drug legislation. The language is modeled on section 203 of
the Senate Amendment. The aggregate level of spending for
such legislation has been assumed within the Function 570
levels and the aggregates in the Conference Agreement, but
will not be allocated to the committees. The Conference
Agreement applies in both the House of Representatives and
the Senate and permits the appropriate Budget Committee
chairman to adjust committee allocations and other
appropriate budgetary aggregates and allocations for
legislation which is reported from the Senate Finance
Committee and the House Committee on Ways and Means or the
Committee on Energy and Commerce if the committee report
legislation providing for Medicare reform and a prescription
drug benefit provided that the cost of such legislation does
not exceed $59.1 billion in BA and outlays for the period of
fiscal years 2003 through 2006 and $300 billion in BA and
outlays for the period of fiscal years 2003 through 2011. The
Conferees note that the authority granted under this section
does not permit the Chairman of the Committee on the Budget
to make any adjustments for floor amendments offered to
unrelated legislation.
The Conferees note that it would be appropriate for the
cost of such legislation (but no other legislation) to be
funded in whole or in part from the surpluses of the Hospital
Insurance Trust Fund.
Section 211(b) of the Conference Agreement retains the
language of section 206 of the Senate Amendment which
provides a reserve fund for legislation regarding payments
under Medicare to home health providers--with a modification.
The Conference Agreement applies in both the House of
Representatives and the Senate and permits the appropriate
Budget Committee chairman to adjust committee allocations and
other appropriate budgetary aggregates and allocations for
legislation which is reported (or for amendments thereto or
conference report thereon) from the Senate Finance Committee
and the House Committee on Ways and Means or the Committee on
Energy and Commerce if the committees report legislation that
repeals the scheduled 15% reduction in home health payments.
The aggregate level of spending for such legislation has been
assumed within the Function 570 levels and the aggregates in
the Conference Agreement, but will not be allocated to the
committees. Adjustments may not exceed $4 billion in BA and
outlays for the period of fiscal years 2003 through 2006 and
$13.7 billion in BA and outlays for the period of fiscal
years 2003 through 2011. The Conferees note that the
authority granted under this section does not permit the
Chairman of the Committee on the Budget to make any
adjustments for floor amendments offered to unrelated
legislation. Subsection (b) provides, however, that no
adjustments may be made if the cost of such legislation taken
together with all previously enacted legislation, would
reduce the surplus below the level of the Medicare HI Trust
Fund surplus for any fiscal year covered by this budget
resolution.
Section 212: Reserve Fund for the Family Opportunity Act
Section 212 of the Conference Agreement retains the
language of section 212 of the Senate Amendment which
provides a reserve fund for legislation to enable the
expansion of Medicaid coverage for children with special
needs to permit their parents to purchase such coverage--with
a modification. The Conference Agreement applies in both the
House of Representatives and the Senate and permits the
appropriate Budget Committee chairman to adjust committee
allocations and other appropriate budgetary aggregates and
allocations for legislation which is reported (and amendments
thereto, or any conference report thereon) from. the Senate
Finance Committee and the House Committee on Ways and Means
or the Committee on Energy and Commerce if the committees
report legislation that that expands Medicaid coverage for
children with special needs to permit their parents to
purchase such coverage. Adjustinents may not exceed $227
million in BA and $180 million. in outlays for fiscal year
2002, $3.035 billion in BA and $2.724 billion in outlays for
the period of fiscal years 2002 through 2006 and $8.337
billion in BA and $7.867 billion in outlays for the period of
fiscal years 2002 through 2011.
The Conferees note that the authority granted under this
section does not permit the Chairman of the Committee on the
Budget to make any adjustments for floor amendments offered
to unrelated legislation. Note that the aggregate level of
spending for such legislation has been assumed within the
Function 550 levels and the aggregates in the Conference
Agreement, but will not be allocated to the committees. The
Conference Agreement provides, however, that no adjustments
may be made if the cost of such legislation, taken together
with all previously enacted legislation would reduce the
surplus below the level of the Medicare HI Trust Fund surplus
for any fiscal year covered by this budget resolution.
Section 213: Reserve Fund for Agriculture
Section 213 of the Conference Agreement includes a new
reserve fund for legislation reauthorizing the Federal
Agriculture Improvement and Reform (FAIR) Act of 1996, Title
I of such act, and other appropriate agriculture production
legislation. Funding for agriculture was assumed in the
budget totals but not the allocation. The Conference
Agreement applies in both the House of Representatives and
the Senate and permits the appropriate Budget Committee
chairman to adjust committee allocations and other
appropriate budgetary aggregates and allocations for
legislation which is reported (and amendments thereto, or any
conference report thereon) from the Senate Committee on
Agriculture, Nutrition and Forestry and the House Committee
on Agriculture if the committees report such legislation.
Adjustments may not exceed $66.15 billion in BA and outlays
for the period of fiscal years 2003 through 2011.
The Conferees note that the authority granted under this
section does not permit the Chairman of the Committee on the
Budget to make any adjustments for floor amendments offered
to unrelated legislation. Note that the aggregate level of
spending for such legislation has been assumed within the
levels for Function 300 and 350 and within the aggregates in
the Conference Agreement, but will not be allocated to the
committees. The Conference Agreement provides however that no
adjustments may be made if the cost of such legislation,
taken together with all previously enacted legislation would
reduce the surplus below the level of the Medicare HI Trust
Fund surplus for any fiscal year covered by this budget
resolution.
Section 214: Reserve Fund for Additional Tax Cuts and Debt
Reduction
Section 214 of the Conference Agreement retains the
language of Section 10 of the House Resolution, which
provides a mechanism by which the assumed tax cuts or debt
levels may be adjusted by an increase in CBO's mid session
update of the surplus. Similar language was included in
section 213 of last year's budget resolution.
Section 215: Technical Reserve Fund for Student Loans
Section 215 of the Conference Agreement includes a new
technical reserve for legislation that permanently retains
the interest rate schedule currently in effect for student
loans and that repeals the switch to a replacement interest
rate structure scheduled to occur under current law on July
1, 2003. This technical reserve would permit extension of the
overwhehningly bipartisan agreement reached in the Higher
Education Amendments of 1998 to support the interest rate
structure of the student loan programs as it operates today.
The Conference Agreement permits the appropriate Budget
Committee chairman to adjust committee allocations and other
appropriate budgetary aggregates and allocations for
legislation (reported from the Senate Committee on Health,
Education, Labor and Pensions and within the jurisdiction
of House Committee on Education and the Workforce) that
repeals an provision (from 1993,) that, if left in place,
would dismantle the existing interest rate structure for
student loans starting July 1, 2003. The adjustment may
not exceed $110 million in BA and $100 million in outlays
for the combined period 2001-2002, nor may it exceed
$3.440 billion in BA and $2.840 billion in outlays for the
combined period 2001-2006, nor may it exceed $7.665
billion in BA and $6.590 billion in outlays over the 2001-
2011 period. The Conferees note that the authority granted
under this section does not permit the Chairman of the
Committee on the Budget to make any adjustments for floor
amendments offered to unrelated legislation.
Section 216: Reserve Fund for the Purchase of Health
Insurance by the Uninsured
Section 216 of the Conference Agreement includes a reserve
fund for legislation which provides resources to facilitate
the purchase of health insurance for the uninsured. The
Conference Agreement applies in both the House of
Representatives and the Senate and permits the appropriate
Budget Committee chairman to adjust committee allocations and
other appropriate budgetary aggregates and allocations
(including the revenue aggregates) for legislation which is
reported (and amendments thereto, or any conference report
thereon) from the Senate Finance Committee and the House
Committee on Ways and Means or the Committee on Energy and
Commerce if the committees report legislation that enables
the uninsured to purchase health insurance. The aggregate
level of spending for such legislation has been assumed
within the Function 550 levels and the spending aggregates in
the Conference Agreement, but will not be allocated to the
committees. The budget levels and aggregates in Function 550
assume that the $28 billion is spent over the 2002-2004
period. Adjustments may not exceed $28 billion in BA and
outlays or $28 billion in revenues or any combination of
spending and revenues for the period of fiscal years 2002
through 2011.
The Conferees note that the authority granted under this
section does not permit the Chairman of the Committee on the
Budget to make any adjustments for floor amendments offered
to unrelated legislation. The Conferees intend, however, to
provide complete flexibility to the authorizing committees to
draft such legislation providing spending or tax changes. The
Conference Agreement provides however that no adjustments may
be made if the cost of such legislation, taken together with
all previously enacted legislation would reduce the surplus
below the level of the Medicare HI Trust Fund surplus for any
fiscal year covered by this budget resolution.

[[Page H1910]]

Section 217: Reserve Fund for Defense in the Senate
Section 217 of the Conference Agreement includes a
mechanism in the Senate to increase the section 302(a)
allocation (and other appropriate budgetary aggregates) to
the Committee on Appropriations and the Committee on Armed
Services of the Senate for 2002 in order to make additional
resources available in response to the President's National
Defense Review. The Conference Agreement permits the Chairman
of the Committee on the Budget to increase the 302(a)
allocation only when two requirements are satisfied. First,
the President must submit a specific budget amendment to the
Congress requesting additional funding for fiscal year 2002
in response to the National Defense Review. Second, the
Committee on Appropriations must have reported an
appropriations measure which provides funding for such budget
amendment.
The Conferees note that the authority granted under this
section does not permit the Chairman of the Committee on the
Budget to make any adjustments for floor amendments offered
to unrelated legislation. Note that neither the Function 050
levels nor the aggregates of the resolution contain any
additional resources for this National Defense Review.
Therefore, any adjustments made pursuant to the authority in
this section will reduce the surplus aggregates contained in
the resolution. The Conference Agreement provides, however,
that no adjustments may be made if the cost of such
legislation, taken together with all previously enacted
legislation would reduce. the surplus below the level of the
Medicare HI Trust Fund surplus for any fiscal year covered by
this budget resolution.
Section 218: Strategic Reserve Fund In The House
Section 218 of the Conference Agreement establishes a
reserve in the House of Representatives for authorizing or
appropriations measures for the Department of Defense,
following the Presiden's National Defense Review; it also may
be used for legislation that would provide for a prescription
drug benefit, or for other appropriate legislation. The
adjustment may only be made for the amount that the relevant
legislation exceeds the applicable committee's allocation or
the aggregate provided for in the budget resolution. The
reserve fund is further limited in that the adjustment may
not be made if it would cause the on-budget surplus to be
less than an amount equal to the Medicare Hospital Insurance
Trust Fund.
Additional items
The Conferees note that the Conference Agreement does not
include any reserve fund language from section 9 of the House
resolution regarding additional discretionary funding for
programs authorized in the Individuals with Disabilities Act.
The Conferees note that the Conference Agreement does not
include any reserve fund language from section 208 of the
Senate Amendment regarding the payment of retired pay and
veterans' disability benefits to disabled military retirees.
The Conference Agreement does however retain the Sense of the
Congress language from section 19 of the House Resolution
which is set out in section 314.
The conference report includes a sense of the Congress
directing the Secretary of Defense to report within 180 days
after the adoption of this Conference Agreement to the
relevant congressional defense committees and to the House
and Senate Budget Committees on the provision of concurrent
retirement and disability benefits for retired members of the
Armed Forces. The report shall address the number of
individuals retired from the Armed Forces who would otherwise
be eligible for disability compensation under the proposed
legislation (S.170 in the Senate and H.R. 303 in the House of
Representatives); the comparability of the policy to Office
of Personnel Management guidelines for civilian Federal
retirees; the comparability of this proposed policy to
prevailing private sector standards; the numbers of
individuals potentially eligible for concurrent benefits
who receive other forms of Federal assistance and the cost
of that assistance; and alternative initiatives that would
accomplish the same result as concurrent receipt of
military retired pay and disability compensation at
different levels of cost. The Secretary of Defense may
submit legislation that he considers appropriate.
Section 314 of the Conference Agreement also includes a
Sense of Congress requesting the Congressional Budget Office
and the Office of Management and Budget to report to the
Budget Committees within 30 days after the adoption of this
conference report on the risk that providing full concurrent
receipt of military retired pay and disability compensation
under the proposed legislation identified above could reduce
the on-budget surplus below the level of the Medicare
Hospital Insurance Trust Fund.
The Conferees also note that the Conference Agreement does
not include any reserve fund language from section 209 of the
Senate Amendment which purported to provide ``fungibility''
between outlays and revenues in reconciliation tax
legislation. Given the language in section 310(c) of the
Budget Act which statutorily provides for ``fungibility,''
the language from section 209 was superfluous.
The Conference Agreement does not include the language from
section 213 of the Senate Amendment regarding increased
funding for veterans' education benefits. Instead the
Conferees agreed to include the funding within the Function
700 levels, the resolution aggregates, and the allocation to
the appropriate authorizing committees of the House of
Representatives and the Senate.
The Conference Agreement does not include the language from
section 214 of the Senate Amendment regarding additional
resources for payments in lieu of taxes and for refuge
revenue sharing.

Miscellaneous Provisions

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

Sense of Congress, House and Senate Provisions

House resolution
The House budget resolution contains the following Senses
of the House or Congress that have no legal force but reflect
the Congress' views on a variety of budget-related issues.
The section numbers and section headings of these reserve
funds are as follows:

[[Page H1911]]

Section 14 states a Sense of the House concerning Federal
pay.
Section 15 states a Sense of Congress relating to
Individual Development Accounts and the working poor.
Section 16 provides a Sense of Congress relating to Federal
fire prevention assistance.
Section 17 states a Sense of the House regarding the
deduction of state sales tax from Federal income taxes.
Section 18 states a Sense of Congress regarding funding for
Graduate Medical Education.
Senate amendment
The Senate amendment contains the following Sense of the
Senate provisions:
Section 301 Sense of the Senate on Debt Reduction.
Section 302 Sense of the Senate on AIDS and Other
Infectious Diseases.
Section 303 Sense of the Senate on Consolidated Health
Centers.
Section 304 Sense of the Senate on Funding for Department
of Justice Programs for State and Local Law Enforcement
Assistance.
Section 305 Sense of the Senate on United States Coast
Guard Fiscal Year 2002 Funding.
Section 306 Sense of the Senate on Strengthening our
National Food Safety Infrastructure.
Section 307 Sense of the Senate with Respect to Increasing
Funds for Renewable Energy Research and Development.
Conference agreement
The Conference Agreement contains the following Sense of
the Senate and Sense of Congress provisions:
Subtitle A.
Section 301 Sense of the Senate on conservation.
Section 302 Sense of the Senate on AIDS and other
infectious diseases.
Section 303 Sense of the Senate on Consolidated Health
Centers.
Section 304 Sense of the Senate on Funding for Department
of Justice Programs for State and Local Law Enforcement
Assistance.
Section 305 Sense of the Senate on United States Coast
Guard Fiscal Year 2002 Funding.
Section 306 Sense of the Senate on Strengthening our
National Food Safety Infrastructure.
Section 307 Sense of the Senate with Respect to Increasing
Funds for Renewable Energy Research and Development
Subtitle B.
Section 311 Asset building for the working poor.
Section 312 Federal Fire prevention assistance.
Section 313 Funding for graduate medical, education at
children's teaching hospitals.
Section 314 Concurrent retirement and disability benefits
to retired members of the armed forces.
Section 315 Federal Employee Pay.
Section 316 Sales tax deduction.
Jim Nussle,
John E. Sununu,
Managers on the Part of the House.

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

____________________