Text: H.R.5437 — 101st Congress (1989-1990)All Information (Except Text)

There is one version of the bill.

Text available as:

Shown Here:
Introduced in House

 
 
HR 5437 IH
101st CONGRESS
2d Session
 H. R. 5437
To remove the social security trust funds from the deficit calculations
required by the Balanced Budget and Emergency Deficit Control Act of
1985, to implement guaranteed multiyear deficit reduction, to revise the
Gramm-Rudman-Hollings sequestration formula, and to provide truth-in-budgeting
reforms.
IN THE HOUSE OF REPRESENTATIVES
August 2, 1990
Mr. CONYERS introduced the following bill; which was referred jointly to
the Committees on Government Operations and Ways and Means and Rules
A BILL
To remove the social security trust funds from the deficit calculations
required by the Balanced Budget and Emergency Deficit Control Act of
1985, to implement guaranteed multiyear deficit reduction, to revise the
Gramm-Rudman-Hollings sequestration formula, and to provide truth-in-budgeting
reforms.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Truth-in-Budgeting Reform Act of 1990'.
TITLE I--SOCIAL SECURITY PRESERVATION
SEC. 101. EXCLUSION OF RECEIPTS AND DISBURSEMENTS OF FEDERAL OLD AGE AND
SURVIVORS INSURANCE TRUST FUND AND FEDERAL DISABILITY INSURANCE TRUST FUND
WHEN CALCULATING MAXIMUM DEFICIT AMOUNTS.
  (a) SOCIAL SECURITY ACT- Subsection (a) of section 710 of the Social Security
  Act (42 U.S.C. 911) is amended by striking `shall not be included in the
  totals of the budget' and inserting `shall not be included in the budget
  deficit or any other totals of the budget'.
  (b) CONFORMING AMENDMENT RESPECTING NEW DEFINITION OF DEFICIT- Section
  275(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of
  1985 is amended by striking out `and the second sentence of section 3(6)
  of such Act (as added by section 201(a)(1) of this joint resolution)'.
SEC. 102. PROTECTION OF OASDI TRUST FUNDS.
  Section 201 of the Social Security Act (42 U.S.C. 401) is amended by adding
  at the end the following new subsection:
  `(n)(1) It shall not be in order in the House of Representatives or the
  Senate to consider any bill or resolution, or any amendment thereto or
  conference report thereon, if upon enactment such legislation--
  `(A) would provide for a net increase in OASDI benefits of at least--
  `(i) $100,000,000 for the period comprising the fiscal year in which the
  legislation would become effective and the next 4 fiscal years, or
  `(ii) 0.005 percent of the present value of future taxable payroll for the
  75-year period utilized in the most recent annual report of the Board of
  Trustees provided pursuant to subsection (c)(2),
without providing at least a net increase, for the same period referred to
in clause (i) or (ii), in OASDI taxes of an amount by which the net increase
in such benefits exceeds the amount specified in such clause; or
  `(B) would provide for a net decrease in OASDI taxes of at least--
  `(i) $100,000,000 for the period comprising the fiscal year in which the
  legislation would become effective and the next 4 fiscal years, or
  `(ii) 0.005 percent of the present value of future taxable payroll for the
  75-year period utilized in the most recent annual report of the Board of
  Trustees provided pursuant to subsection (c)(2),
without providing for at least a net decrease, for the same period referred
to in clause (i) or (ii), in OASDI benefits of an amount by which the net
decrease in such taxes exceeds the amount specified in such clause.
  `(2) In applying subparagraph (B) of paragraph (1), any provision of any
  bill or resolution, or any amendment thereto or conference report thereon,
  the effect of which is to provide for a net decrease for any period in OASDI
  taxes described in paragraph (3)(B)(i) shall be disregarded if such bill,
  resolution, amendment, or conference report also includes a provision the
  effect of which is to provide for a net increase of at least an equivalent
  amount for such period in Medicare taxes.
  `(3) For purposes of this subsection--
  `(A) The term `OASDI benefits' means--
  `(i) the benefits under the old-age survivors, and disability insurance
  program under this title, and
  `(ii) tier 1 railroad retirement benefits (as defined in section 86(d)(4)
  of the Internal Revenue Code of 1986).
  `(B) The term `OASDI taxes' means--
  `(i) the taxes imposed under sections 1401(a), 3101(a), and 3111(a) of
  the Internal Revenue Code of 1986,
  `(ii) the taxes imposed under chapter 1 of such Code (to the extent
  attributable to section 86 of such Code),
  `(iii) the taxes which would be imposed under sections 3201(a) and 3221(a)
  of such Code if the rate of such taxes were the rate of tax imposed under
  section 3101(a) of such Code, and
  `(iv) the taxes which would be imposed under section 3211(a)(1) of such
  Code if the rate such tax were the rate of tax imposed under section 1401(a)
  of such Code.
  `(C) The term `Medicare taxes' means the taxes imposed under sections
  1401(b), 3101(b), and 3111(b) of the Internal Revenue Code of 1986.
  `(4) For purposes of this subsection, all estimates of revenues and
  outlays shall be provided by the Committee on the Budget of the House
  of Representatives or the Senate, as the case may be, which shall use
  exclusively estimates of income, estate and gift, excise, and payroll taxes
  and refundable tax credits provided to it by the Joint Committee on Taxation
  except that the estimates required by paragraphs (1)(A)(ii) and (1)(B)(ii)
  shall be made by the Committee on the Budget. The estimates provided by
  the Joint Committee on Taxation shall be based upon economic and related
  technical assumptions provided by the Congressional Budget Office.
  `(5) The point of order set forth in paragraph (1) may be waived or suspended
  in the Senate only by the affirmative vote of three-fifths of the Members,
  duly chosen and sworn.'.
TITLE II--GUARANTEED MULTIYEAR DEFICIT REDUCTION
SEC. 201. BUDGET RESOLUTIONS: DEFICIT REDUCTION.
  Title III of the Congressional Budget Act of 1974, as amended by this Act,
  is amended by inserting after subtitle III the following new subtitle:
`Subtitle IV--Multiyear Deficit Reduction
`GUARANTEED MULTIYEAR DEFICIT REDUCTION
  `SEC. 330. (a) CONCURRENT RESOLUTIONS ON THE BUDGET- Except as provided by
  subsection (b), it shall not be in order in the House of Representatives
  or the Senate to consider any concurrent resolution on the budget for
  any fiscal year, or any amendment thereto or conference report thereon,
  unless the deficit reduction established--
  `(1) by that concurrent resolution or the resolution recommended in such
  conference report; or
  `(2) in the case of an amendment, by the concurrent resolution as proposed
  to be changed by the adoption of such amendment;
is at least $30,000,000,000 for that fiscal year and $40,000,000,000 for
each of the 4 ensuing fiscal years.
  `(b) EXCEPTION- If, for any fiscal year, the joint resolution (in the event
  of a recession or in the event of a war) described in section 254(a) of the
  Balanced Budget and Emergency Deficit Control Act of 1985 has been enacted,
  then subsection (a) shall not apply with respect to that fiscal year.
  `(c) COMPUTATION OF AMOUNT OF DEFICIT REDUCTION- For purposes of subsection
  (a), the deficit reduction for any fiscal year that is contained in a
  concurrent resolution covering that fiscal year shall be the amount of
  the estimated deficit for that fiscal year based on laws assumed to be
  enacted and regulations assumed to be promulgated as final by October
  1 of the calendar year in which that concurrent resolution is agreed to
  (measured or projected using a budget baseline computed in the same manner
  as the budget baseline referred to in section 4), subtracted from the
  amount of estimated deficit for that fiscal year based on laws enacted by,
  and regulations promulgated as final by, January 1 of the calendar year
  in which such concurrent resolution is adopted (measured or projected
  by using such a baseline). Both deficit estimates shall be made by the
  Committee on the Budget of the House of Representatives or the Senate,
  as the case may be, using the same economic and technical assumptions.'.
SEC. 202. PRESIDENT'S BUDGET: DEFICIT REDUCTION.
  Section 1105(f) of title 31, United States Code, is amended to read
  as follows:
  `(f)(1) Except as provided by paragraph (2), the budget transmitted
  pursuant to subsection (a) shall be prepared on the basis of the best
  estimates then available, in such manner as to ensure that the deficit
  reduction for that fiscal year is at least $30,000,000,000, and deficit
  reduction for each of the 4 ensuing fiscal years is at least $40,000,000,000.
  `(2) If, for any fiscal year, the joint resolution (in the event of a
  recession or in the event of a war) described in section 254(a) of the
  Balanced Budget and Emergency Deficit Control Act of 1985 has been enacted,
  then paragraph (1) shall not apply for the fiscal year.
  `(3) For purposes of paragraph (1), the deficit reduction for any fiscal year
  that is contained in a budget covering that fiscal year shall be the amount
  of the estimated deficit for that fiscal year based on laws proposed to be
  enacted and regulations proposed to be promulgated as final by October 1
  of the calendar year in which that budget is submitted, subtracted from the
  amount of estimated deficit for that fiscal year based on laws enacted by,
  and regulations promulgated as final by, January 1 of the calendar year
  in which such budget is submitted. Both deficit estimates shall be made
  using the same economic and technical assumptions.'.
SEC 203. CBO ANALYSIS OF PRIOR LEGISLATION AND PRESIDENT'S BUDGET.
  Section 202(f)(1) of the Congressional Budget Act of 1974 is amended
  by inserting at the end the following: `Such report shall also include
  an analysis of the deficit reduction achieved by each committee of the
  House of Representatives and the Senate for each fiscal year during the
  5-year period covered by the previous concurrent resolution on the budget,
  compared to the deficit reduction for that committee set forth in the
  joint explanatory statement accompanying the conference report on that
  resolution. Such report shall also include an estimate (using the Director's
  estimating assumptions) of the amount of deficit reduction proposed by the
  President for that fiscal year and each of the four ensuing fiscal years,
  with the estimated amount of deficit reduction divided between that to
  be  produced by legislation and that to be produced by regulation and
  further divided among policies that constitute permanent deficit changes,
  policies that constitute temporary deficit changes, and policies whose
  effects in any year are largely the result of accounting phenomena. Such
  report shall also identify and estimate any budgetary proposal that has
  also been submitted in substantially similar form in two of the previous
  three presidential budgets.'.
SEC. 204. TERMINATION OF DEFICIT REDUCTION REQUIREMENT.
  Upon submission of a budget under section 1105(a) of title 31, United States
  Code, for a fiscal year that includes an estimate of the start-of-year
  baseline deficit under section 4 of the Congressional Budget and Impoundment
  Control Act of 1974 for such fiscal year that, (excluding the corporate tax
  surcharge imposed under section 60 of the Internal Revenue Code of 1986)
  of the United States is less than 1 percent of estimated gross national
  product for such fiscal year, the following provisions of law shall have
  no force or effect for such fiscal year or any ensuing fiscal year:
  (1) Section 1105(f) of title 31, United States Code.
  (2) Section 312 of the Congressional Budget Act of 1974.
  (3) Section 311(a) of the Congressional Budget Act of 1974 insofar as it
  represents a deficit test in the Senate.
TITLE III--SEQUESTRATION
SEC. 301. SEQUESTRATION FORMULA TO INCLUDE REVENUES.
  (a) AGGREGATE REVENUE INCREASES- Section 251(a)(3) of the Balanced Budget
  and Emergency Deficit Control Act of 1985 is amended by inserting after
  subparagraph (E) the following:
  `(F) For fiscal year 1991 and each ensuing fiscal year, the aggregate amount
  of required revenue increases for a fiscal year shall equal one-half of
  the amount of the unachieved deficit reduction for such fiscal year.'.
  (b) ESTIMATES AND DETERMINATIONS- Section 251(a)(2)(A) of the Balanced
  Budget and Emergency Deficit Control Act of 1985 is amended by inserting
  before the period the following: `, and estimating the aggregate amount
  of revenue increases required by this part for such fiscal year and the
  applicable percentage determined under section 1(g) of the Internal Revenue
  Code of 1986'.
  (c) DETERMINATION OF OUTLAY REDUCTIONS- Section 251(a)(3)(A)(i) of the
  Balanced Budget and Emergency Deficit Control Act of 1985 is amended --
  (1) by striking the first sentence and inserting the following: `For
  fiscal year 1991 and each ensuing fiscal year, the aggregate required
  outlay reduction shall be one-half of the unachieved deficit reduction
  for such fiscal year.'; and
  (2) by striking the second sentence and inserting the following: `For any
  fiscal year, the unachieved  deficit reduction shall be $30,000,000,000 minus
  the net deficit reduction in the budget baseline for such fiscal year.'.
  (d) CONFORMING AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY DEFICIT
  CONTROL ACT OF 1985-
  (1) Section 254(a)(2)(A) of the Balanced Budget and Emergency Deficit Control
  Act of 1985 is amended by striking `sections 3(7), 301(i), 302(f), 304(b),
  and 311(a)' and inserting `sections 302(f), 311(a), and 312', and by striking
  `(2) the provisions' and all that follows thereafter through `of the Act'
  and by inserting `(2) the provisions of sections 311(a) (insofar as it
  constitutes a deficit test in the Senate) and 312 of the Congressional
  Budget Act of 1974, sections 302(f), 311(a), and 312 of that Act'.
  (2) Section 275(b)(1) of Public Law 99-177 is amended by inserting `(except
  section 254(a))' after `Part C'.
SEC. 302. INCREASE IN INDIVIDUAL INCOME TAX RATE FOR HIGH-INCOME TAXPAYERS.
  (a) GENERAL RULE- Section 1 of the Internal Revenue Code of 1986 (relating
  to tax imposed) is amended by striking subsections (a) through (e) and
  inserting the following:
  `(a) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES-
  There is hereby imposed on the taxable income of--
  `(1) every married individual (as defined in section 7703) who makes a
  single return jointly with a spouse under section 6013, and
  `(2) every surviving spouse (as defined in section 2(a)), a tax determined
  in accordance with the following table:
`If taxable income is:
The tax is:
Not over $32,450
15% of taxable income.
Over $32,450 but not over $78,400
$4,867.50, plus 28% of the excess over $32,450.
Over $78,400 but not over $162,770
$17,733.50, plus 33% of the excess over $78,400.
Over $162,770
$45,575.60, plus the applicable percentage of the excess over $162,770.
  `(b) HEADS OF HOUSEHOLDS- There is hereby imposed on the taxable income
  of every head of a household (as defined in section 2(b)) a tax determined
  in accordance with the following table:
`If taxable income is:
The tax is:
Not over $26,050
15% of taxable income.
Over $26,050 but not over $67,200
$3,907.50, plus 28% of the excess over $26,050.
Over $67,200 but not over $134,930
$15,429.50, plus 33% of the excess over $67,200.
Over $134,930
$37,780.40, plus the applicable percentage of the excess over $134,930.
  `(c) UNMARRIED INDIVIDUALS (OTHER THAN SURVIVING SPOUSES AND HEADS OF
  HOUSEHOLDS)- There is hereby imposed on the taxable income of every
  individual (other than a surviving spouse as defined in section 2(a) or
  the head of a household as defined in section 2(b)) who is not a married
  individual (as defined in section 7703) a tax determined in accordance
  with the following table:
`If taxable income is:
The tax is:
Not over $19,450
15% of taxable income.
Over $19,450 but not over $47,050
$2,917.50, plus 28% of the excess over $19,450.
Over $47,050 but not over $97,620
$10,645.50, plus 33% of the excess over $47,050.
Over $97,620
$27,333.60, plus the applicable percentage of the excess over $97,620.
  `(d) MARRIED INDIVIDUALS FILING SEPARATE RETURNS- There is hereby imposed on
  the taxable income of every married individual (as defined in section 7703)
  who does not make a single return jointly with a spouse under section 6013,
  a tax determined in accordance with the following table:
`If taxable income is:
The tax is:
Not over $16,225
15% of taxable income.
Over $16,225 but not over $39,200
$2,433.75, plus 28% of the excess over $16,225.
Over $39,200 but not over $81,385
$8,866.75, plus 33% of the excess over $39,200.
Over $81,385
$22,787.80, plus the applicable percentage of the excess over $81,385.
  `(e) ESTATES AND TRUSTS- There is hereby imposed on the taxable income of--
  `(1) every estate, and
  `(2) every trust,
taxable under this subsection a tax determined in accordance with the
following table:
`If taxable income is:
The tax is:
Not over $5,450
15% of taxable income.
Over $5,450 but not over $14,150
$817.50, plus 28% of the excess over $5,450.
Over $14,150 but not over $28,320
$3,253.50, plus 33% of the excess over $14,150.
Over $28,320
$7,929.60, plus the applicable percentage of the excess over $28,320.'
  (b) REPEAL OF PHASEOUT; APPLICABLE PERCENTAGE-
  (1) IN GENERAL- Section 1 of such Code is amended by striking subsection
  (g) (relating to phaseout of 15-percent rate and personal exemptions)
  and inserting the following:
  `(g) APPLICABLE PERCENTAGE- For purposes of this section, the term
  `applicable percentage' means--
  `(1) 33 percent, or
  `(2) if a report is filed under section 251(a)(2)(B) or 251(c)(2)
  of Balanced Budget and Emergency Deficit Control Act of 1985 showing a
  required revenue increase for any fiscal year, such higher percentage
  prescribed by the Secretary which the Secretary estimates will increase
  revenues (attributable to taxable years to which such percentage applies)
  to the Treasury equal to such required revenue increase. Such an adjustment
  shall apply to taxable years beginning during the calendar year which
  begins during such fiscal year.'
  (2) CONFORMING AMENDMENT- Subparagraph (A) of section 1(f)(6) of such Code
  (relating to adjustments for inflation) is amended by striking `subsection
  (g)(4),'.
  (c) 28 PERCENT MAXIMUM CAPITAL GAINS RATE- Subsection (j) of section 1
  of such Code (relating to maximum capital gains rate) is amended to read
  as follows:
  `(j) MAXIMUM CAPITAL GAINS RATE- If a taxpayer has a net capital gain for
  any taxable year, then the tax imposed by this section shall not exceed
  the sum of--
  `(1) a tax computed at the rates and in the same manner as if this subsection
  had not been enacted on the greater of--
  `(A) taxable income reduced by the amount of the net capital gain, or
  `(B) the amount of taxable income taxed at a rate below 28 percent, plus
  `(2) a tax of 28 percent of the amount of taxable income in excess of the
  amount determined under paragraph (1).'
  (d) CONFORMING AMENDMENTS RELATING TO INFLATION ADJUSTMENTS-
  (1) Subsection (f) of section 1 of such Code is amended--
  (A) in paragraph (1), by striking `1988' and inserting `1991', and
  (B) in paragraph (3)(B), by striking `1987' and inserting `1989'.
  (2) Subparagraph (B) of section 32(i)(1) of such Code is amended by striking
  `1987' and inserting `1989'.
  (3) Subparagraph (C) of section 41(e)(5) of such Code is amended--
  (A) in clause (i), by inserting before the period at the end the following:
  `, by substituting `calendar year 1987' for `calendar year 1989' in
  subparagraph (B) thereof', and
  (B) in clause (ii), by striking `1987' and inserting `1989'.
  (4) Subparagraph (B) of section 63(c)(4) of such Code is amended by
  inserting before the period at the end the following: `, by substituting
  `calendar year 1987' for `calendar year 1989' in subparagraph (B) thereof'.
  (5) Clause (ii) of section 135(b)(2)(B) of such Code is amended by striking
  `, determined by substituting `calendar year 1989' for `calendar year 1987'
  in subparagraph (B) thereof'.
  (6) Subparagraph (B) of section 151(d)(3) of such Code is amended by striking
  `1987' and inserting `1989'.
  (7) Clause (ii) of section 513(h)(2)(C) of such Code is amended by inserting
  before the period at the end the following: `, by substituting `calendar
  year 1987' for `calendar year 1989' in subparagraph (B) thereof'.
  (e) EFFECTIVE DATE- The amendments made by this section shall apply to
  taxable years beginning after December 31, 1989.
SEC. 303. APPLICATION OF SEQUESTRATION TO FULL-YEAR APPROPRIATION BILLS
ENACTED AFTER FINAL SNAPSHOT.
  Section 252(f)(2)(B) of the Balanced Budget and Emergency Deficit Control
  Act of 1985 is amended by striking everything after `final order' the
  first time it appears and by inserting `shall be sequestered.'.
TITLE IV--TRUTH-IN BUDGETING REFORMS
SEC. 401. AMENDMENTS TO DEFINITIONS.
  Section 3 of the Congressional Budget and Impoundment Control Act of 1974
  is amended to read as follows:
`DEFINITIONS
  `SEC. 3. (a) OUTLAYS- The term `outlays' means, with respect to a fiscal
  year, expenditures made during that year from budget authority, and (as
  negative outlays) amounts received by the Government as gifts (other than
  excess earnings of the Federal Reserve System) or in exchange for goods
  and services.
  `(b) REVENUES- The term `revenues' means, with respect to a fiscal year,
  receipts of the Government during that year, except (1) funds paid to the
  Government in exchange for goods and services, (2) gifts (other than excess
  earnings of the Federal Reserve System), and (3) transactions classified
  as means of financing the deficit.
  `(c) DEFICIT AND SURPLUS- The term `deficit' means, with respect to a fiscal
  year, the amount by which outlays exceed revenues during that year. The
  term `surplus' means, with respect to a fiscal year, the amount by which
  revenues exceed outlays during that year.
  `(d) BUDGET AUTHORITY-
  `(1) IN GENERAL- The term `budget authority' means the authority provided
  by law of the Government to incur financial obligations, as follows:
  `(A) Appropriations, which means the making of funds available for obligation
  and expenditure, including the authority to obligate and expend offsetting
  receipts and collections from the public.
  `(B) Contract authority, which means the making of funds available for
  obligation but not for expenditure.
  `(C) Borrowing authority, which means authority granted to a Federal entity
  to borrow and obligate and expend the borrowed funds, including through
  the issuance of promissory notes or other monetary credits.
  `(D) Offsetting receipts and collections (as negative budget authority).
Such term excludes transactions classified as a means of financing the deficit.
  `(2) ESTIMATES OF BUDGET AUTHORITY- Budget authority may be definite (in
  which the numerical amount is specified by statute) or indefinite and,
  therefore, subject to estimate, and includes contingent budget authority
  determined under section 320 to exist.
  `(3) LIMITATIONS ON BUDGET AUTHORITY- Any amount that is precluded from
  obligation in a fiscal year by a provision of law (such as a limitation
  or a benefit formula) shall not be budget authority in that year.
  `(e) NEW BUDGET AUTHORITY- The term `new budget authority' means, with
  respect to a fiscal year--
  `(1) budget authority that first becomes available for obligation in that
  year, including budget authority that becomes available in that year as
  the result of are appropriation; or
  `(2) a change in any account in the availability of unobligated balances of
  budget authority carried over from a prior year, resulting from a provision
  of law first effective in that year;
and includes a change in the estimated level of new budget authority provided
in indefinite amounts by existing law.
  `(f) SPENDING REQUIREMENT-
  `(1) The term `spending requirement' means any provision of law that
  requires the Government to make payments (including payments to any
  Government account) regardless of the amount of budget authority that may
  be available to make those payments, including any spending requirement
  estimated to exist under section 320.
  `(2) Except as provided by paragraph (3), if a provision of law that requires
  the Government to make payments is limited by any other provision of law to
  the amount of available budget authority (directly, or by providing for pro
  rata reductions in payments, changes in eligibility, changes in employment,
  or through other means), then a spending requirement does not exist.
  `(3) For purpose of paragraph (2), subchapter II of chapter 13 of title
  31, United States Code (formerly the Anti-Deficiency Act) shall not be
  considered a provision of law that limits a spending requirement to the
  amount of available budget authority.
  `(g) NEW SPENDING REQUIREMENT- The term `new spending requirement' means
  any legislation creating a spending requirement (or altering an existing
  spending requirement) that was not enacted before the date of adoption of
  the most recently agreed-to-budget resolution, and includes a change in
  the estimated level of spending requirements created in indefinite amounts
  by existing law.
  `(h) OFFSETTING RECEIPTS AND COLLECTIONS- The term `offsetting receipts
  and collections' means the amounts received by the Government in exchange
  for goods and services or as gifts (other than the excess earnings of the
  Federal Reserve System).
  `(i) BUDGET YEAR- The term `budget year' means, with respect to a session
  of Congress, the fiscal year of the Government that starts on October 1
  of the calendar year in which the session begins.
  `(j) OUTYEAR- The term `outyear' means, with respect to a budget year,
  any of the four fiscal years that immediately follow that budget year.
  `(k) CURRENT YEAR- The term `current year' means, with respect to a budget
  year, the fiscal year that immediately precedes that budget year.
  `(l) BASELINE- The term `baseline' means the projection of current-year
  levels of new budget authority, outlays, revenues, and the deficit or
  surplus into the budget year and the outyears described in section 4.
  `(m) ACCOUNT- The term `account' means an item for which appropriations
  are made in any appropriation Act used to determine the budget base, and,
  for items not provided for in appropriation Acts, such term means an item
  for which there is a designated budget account identification number in
  the Appendix to the budget submitted under section 1105(a) of title 31,
  United States Code.
  `(n) GOVERNMENT-SPONSORED ENTERPRISE- The term `government-sponsored
  enterprise' means an entity created by law of the United States that--
  `(1) may not exercise powers that are reserved to the Government as
  sovereign (such as the power to tax, to levy fees for which no goods or
  services are provided, or to regulate interstate commerce);
  `(2) may not commit the Government financially (but it may be a recipient
  of a loan guarantee commitment made by the Government);
  `(3) is privately owned, and such ownership is not required as a condition
  of maintaining such owner's business or profession;
  `(4) is controlled by a board of directors, a majority of which is elected
  by private owners; and
  `(5) has employees, none of whom is employed by the Government.
  `(o) TAX EXPENDITURES- The term `tax expenditures' means those revenue
  losses attributable to provisions of the Federal tax laws that allow
  a special exclusion, exemption, or deduction from gross income or that
  provide a special credit, a preferential rate of tax, or a deferral of
  tax liability, and the term `tax expenditure budget' means a listing of
  such tax expenditures.
  `(p) ASSET SALE- The term `asset sale' means the sale to the public of --
  `(1) any financial asset other than a loan asset, or
  `(2) any physical asset other than one produced on a current basis.
  `(q) TIMING SHIFT- (1) The term `timing shift' means a change in the date
  on which an obligation, outlay, revenue, receipt, or collection of the
  Government would otherwise be made or received that reduces the deficit
  or increases the surplus in any fiscal year, except that in the case of
  a date change of 365 days or more, each complete increment of 365 days
  shall not be considered a timing shift.
  `(2) The term `new timing shift' means a timing shift not enacted,
  promulgated as final, or formally announced before the immediately preceding
  January 1.
  `(r) MEANS OF FINANCING THE DEFICIT- The term `means of financing the
  deficit' means, with respect to a fiscal year, financial transactions of
  the Government that consist of exchanges of money or monetary proxies of
  equal value during that year and therefore are not counted as outlays or
  revenues, such as Federal borrowing from the public, debt redemption,
  seigniorage on coins and profits from the sale of gold, proceeds of
  asset sales, and changes in outstanding checks and other monetary credits
  (including write-offs of checks and credits).
  `(s) CONCURRENT RESOLUTION OF THE BUDGET- The term `concurrent resolution on
  the budget' or `budget resolution' means a concurrent resolution establishing
  the congressional budget for the Government for a fiscal year as provided in
  section 301 or revising it as described in section 304 of the Congressional
  Budget Act of 1974.
  `(t) DIRECT SPENDING- The term `direct spending' means--
`(A) budget authority provided by laws other than appropriation Acts; and
`(B) spending requirements, and the food stamp program.'.
SEC. 402. THE BASELINE.
  (a) REPEALER- Section 251(a)(6) of the Balanced Budget and Emergency
  Deficit Control Act of 1985 is repealed.
  (b) CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974- The
  Congressional Budget and Impoundment Control Act of 1974 is amended by
  inserting after section 3 the following new section:
`THE BASELINE
  `SEC. 4. (a) IN GENERAL- For any budget year, the baseline refers to a
  projection of base-year levels of new budget authority, outlays, revenues,
  and the surplus or deficit into the budget year and the outyears based on
  laws enacted in sessions of Congress ending before the beginning of the
  budget year.
  `(b) REVENUES AND DIRECT SPENDING- For the budget year and each outyear,
  the baseline shall be calculated using the following assumptions:
  `(1) IN GENERAL- Revenue laws and laws providing or creating direct spending
  are assumed to operate in the manner specified in those laws for each such
  year and funding for spending requirements is assumed to be adequate to
  make all payments required by those laws.
  `(2) EXCEPTION- No program with estimated base-year outlays greater than
  $50 million shall be assumed to expire in the budget year or outyears.
  `(c) DISCRETIONARY APPROPRIATIONS- For the budget year and each outyear,
  the baseline shall be calculated using the following assumptions regarding
  all amounts other than those covered by subsection (b):
  `(1) INFLATION OF BASE-YEAR APPROPRIATIONS- New budget authority and
  obligation limitations shall be at the level available in the base year,
  adjusted for expiring housing contracts as specified in paragraph (2),
  adjusted for inflation as specified in paragraph (3), and adjusted to
  account for changes required by law in the level of agency payments for
  personnel benefits other than pay.
  `(2) EXPIRING HOUSING CONTRACTS- For the budget year and for each outyear,
  base-year new budget authority to renew expiring multiyear subsidized housing
  contracts shall be adjusted to reflect the number of such contracts that
  are scheduled to expire in that year with the per-contract renewal cost
  equal to the average base-year cost of new contracts.
  `(3) INFLATOR- The inflator used in paragraph (1) shall be the percent by
  which the average of the estimated gross national product implicit price
  deflator for a fiscal year differs from the average of such estimated
  deflator for the base year.
  `(4) BASE-YEAR APPROPRIATIONS- If, for any account, a continuing
  appropriation is in effect for less than the entire base year, then the
  base-year amount shall be assumed to equal the amount that would be available
  if that continuing appropriation covered the entire fiscal year. If law
  permits the transfer of budget authority among budget accounts in the
  base year, the base-year level for an account shall reflect transfers
  accomplished by the submission of, or assumed for the base year in, the
  President's original budget for the budget year.
  `(d) MEDICARE ESTIMATES- Medicare spending levels for inpatient hospital
  services shall be assumed to be based upon the regulations most recently
  issued in final form or proposed by the Health Care Financing Administration
  pursuant to sections 1886(b)(3)(B), 1886(d)(3)(A), and 1886(e)(4) of the
  Social Security Act.
  `(e) ADVANCE DEFICIENCY PAYMENTS- Unless otherwise required by law, advance
  deficiency payments shall be assumed to be made in accordance with applicable
  regulations and payment rates for 1987.
  `(f) VETERANS' COMPENSATION- Unless otherwise provided by law, that the
  increase for Veterans' compensation for a fiscal year shall be assumed to
  be same as that required by law for Veterans' pensions.
  `(g) TIMING SHIFTS- Changes in the level of new budget authority, new
  spending requirements, outlays, or revenues resulting from new timing
  shifts shall not be counted.
  `(h) TRANSITION RULE- In providing budget estimates for budget year 1991,
  base-year 1990 amounts shall be calculated using the concepts and definitions
  that are required for that budget year.'.
SEC. 403. TITLE III OF THE CONGRESSIONAL BUDGET ACT OF 1974.
  Title III of the Congressional Budget Act of 1974 is amended to read
  as follows:
`TITLE III--CONGRESSIONAL BUDGET PROCESS
`Subtitle I--Budget Resolutions and Implementing Legislation
`SEC. 300. TIMETABLE.
  `The timetable with respect to the congressional budget process for any
  budget year is as follows:
`On or before:
Action to be completed:
Second Monday after January 3
President submits the budget.
30 days after President submits his budget
Congressional Budget Office submits report to Budget Committees.
February 25
Committees submit views and estimates to Budget Committees.
March 20
Budget Committees report concurrent resolutions on the budget.
May 1
Congress completes action on concurrent resolution on the budget. Annual
appropriation bills may be considered in the House.
June 10
House Appropriations Committee reports all regular appropriation bills;
House and Senate committees submit reconciliation legislation.
June 30
House passes all regular appropriation bills; House and Senate pass
reconciliation bills.
August 5
Senate passes all regular appropriation bills; Congress completes
reconciliation bill.
October 1
Budget year begins.
`SEC. 301. ADOPTION OF BUDGET RESOLUTION.
  `(a) VIEWS AND ESTIMATES OF OTHER COMMITTEES- On or before February
  25 of each year, each committee of the House of Representatives or the
  Senate shall submit to the Committee on the Budget of its House its views
  and estimates (as determined by the committee making such submission)
  with respect to all matters set forth in subsections (c) and (d) that
  relate to matters within the legislative jurisdiction of the committee,
  including estimated costs of prospective direct spending or revenue
  legislation in each of the years to be covered by the budget resolution,
  and estimated savings in each such year from prospective direct spending
  or revenue legislation. The Joint Economic Committee shall submit to the
  Committee on the Budget of both Houses its recommendations as to fiscal
  policy appropriate to the goals of the Employment Act of 1946. Any other
  committee of the House of Representatives or the Senate may submit to
  the Committee on the Budget of its House, and any joint committee of the
  Congress may submit to the Committee on the Budget of both Houses, its
  views and estimates with respect to all matters set forth in subsections
  (c) and (d) that relate to matters within its jurisdiction or functions.
  `(b) HEARINGS- In developing the budget resolution for each fiscal year, the
  Committee on the Budget of each House shall hold hearings and shall receive
  testimony from Members of Congress and such appropriate representatives
  of Federal departments and agencies, the general public, and national
  organizations as the committee deems desirable.
  `(c) CONTENT OF BUDGET RESOLUTIONS- On or before May 1 of each year,
  Congress shall complete action on a concurrent resolution on the budget. The
  budget resolution shall set forth appropriate levels for the current year,
  the budget year, and each outyear of the following--
  `(1) totals of new budget authority and outlays;
  `(2) total revenues;
  `(3) the surplus or deficit;
  `(4) the public debt; and
  `(5) totals within each major functional category of new budget authority
  and outlays.
  `(d) ADDITIONAL MATTER IN BUDGET RESOLUTIONS- (1) The concurrent resolution
  on the budget--
  `(A) shall include reconciliation directives when required by section 303;
  `(B) may set forth the calendar year in which, in the opinion of the
  Congress, the goals for reducing unemployment set forth in section 4(b)
  of the Employment Act of 1946 should be achieved; and
  `(C) may set forth other matters and require other procedures, relating
  to the budget, as appropriate to carry out the purposes of this Act.
  `(2) If the Committee on the Budget of the House of Representatives reports
  any concurrent resolution on the budget that includes any procedure or matter
  having the effect of changing any rule of the House of Representatives,
  such concurrent resolution shall then be referred to the Committee on Rules
  with instructions to report it within five calendar days (not counting any
  day on which the House is not in session). The Committee on Rules shall
  have jurisdiction to report any concurrent resolution referred to it under
  this paragraph with an amendment or amendments changing or striking out
  any such procedure or matter.
  `(e) REPORTS- The report accompanying a budget resolution shall include--
  `(1) a comparison of revenues set forth in the budget resolution with
  those estimated in the budget submitted by the President;
  `(2) a comparison of the appropriate levels of total outlays and total new
  budget authority set forth in the budget resolution with those estimated
  or requested in the budget submitted by the President;
  `(3) an allocation of the level of Federal revenues recommended in the
  budget resolution among the major sources of such revenues;
  `(4) spending allocations described in section 310;
  `(5) the economic assumptions and objectives which underlie each of the
  matters set forth in the budget resolution;
  `(6) an analysis of the major components of, and reasons for, year-to-year
  outlay and revenue growth during the period covered by the resolution;
  `(7) a statement of any significant changes in the proposed levels of
  Federal assistance to State and local governments; and
  `(8) information, data, and comparisons indicating the manner in which,
  and the basis on which, the committee determined each of the matters set
  forth in the concurrent resolution.
  `(f) ACHIEVEMENT OF GOALS FOR REDUCING UNEMPLOYMENT-
  `(1) If, under section 4(c) of the Employment Act of 1946, the President
  recommends in the Economic Report for a budget year that the goals for
  reducing unemployment set forth in section 4(b) of such Act be achieved in a
  year after the close of the five-year period prescribed by such subsection,
  the budget resolution for that budget year may set forth the year in which,
  in the opinion of the Congress, such goals can be achieved.
  `(2) After Congress has expressed its opinion under paragraph (1) as to the
  year in which the goals for reducing unemployment set forth in section 4(b)
  of the Employment Act of 1946 can be achieved, if the President recommends
  in the Economic Report for a budget year that such goals be achieved in a
  different year than specified by Congress, the budget resolution for that
  budget year may set forth the year in which, in the opinion of the Congress,
  such goals can be achieved.
  `(3) It shall be in order to amend the provision of such resolution
  setting forth such year only if the amendment thereto also proposes to
  alter the estimates, amounts, and levels (as described in subsection (c))
  set forth in such resolution in germane fashion in order to be consistent
  with the economic goals (as described in sections 3(a)(2) and (4)(b) of
  the Employment Act of 1946) that the amendment proposes can be achieved
  in the year specified in the amendment.
  `(g) ECONOMIC ASSUMPTIONS-
  `(1) The joint explanatory statement accompanying a conference report on
  a concurrent resolution on the budget shall set forth the common economic
  assumptions upon which such joint statement and conference report are based,
  or upon which any amendment contained in the joint explanatory statement to
  be proposed by the conferees in the case of technical disagreement, is based.
  `(2) It shall not be in order in the Senate to consider any concurrent
  resolution on the budget for a fiscal year, or any amendment thereto or
  conference report thereon, that sets forth amounts and levels that are
  determined on the basis of more than one set of economic and technical
  assumptions.
  `(h) BUDGET COMMITTEES' CONSULTATION WITH COMMITTEES- The Committee on the
  Budget of the House of Representatives and the Committee on the Budget of
  the Senate shall consult with the committees of its House having legislative
  jurisdiction during the preparation, consideration, and enforcement of
  the concurrent resolution on the budget with respect to all matters that
  relate to the jurisdiction or functions of such committees.
`SEC. 302. CONSIDERATION OF BUDGET RESOLUTIONS.
  `(a) PROCEDURES IN THE HOUSE OF REPRESENTATIVES AFTER REPORT OF COMMITTEE;
  DEBATE; AMENDMENTS-
  `(1) When the Committee on the Budget of the House of Representatives has
  reported any concurrent resolution on the budget, it is in order at any
  time after the fifth day (excluding Saturdays, Sundays, and legal holidays)
  following the day on which the report upon such resolution by the Committee
  on the Budget has been available to Members of the House and, if applicable,
  after the first day (excluding Saturdays, Sundays, and legal holidays)
  following the day on which a report upon such resolution by the Committee
  on Rules under section 301(d)(2) has been available to Members of the House
  (even though a previous motion to the same effect has been disagreed to)
  to move to proceed to the consideration of the concurrent resolution. The
  motion is highly privileged and is not debatable. An amendment to the
  motion is not in order, and it is not in order to move to reconsider the
  vote by which the motion is agreed to or disagreed to.
  `(2) General debate on any concurrent resolution on the budget in the
  House of Representatives shall be limited to not more than 10 hours,
  which shall be divided equally between the majority and minority parties,
  and which shall include the hours of debate consumed under subsection
  (c)(1). A motion further to limit debate is not debatable. A motion to
  recommit the concurrent resolution is not in order, and it is not in order
  to move to reconsider the vote by which the concurrent resolution is agreed
  to or disagreed to.
  `(3) Consideration of any budget resolution by the House of Representatives
  shall be in the Committee of the Whole, and the resolution shall be
  considered for amendment under the five-minute rule in accordance with
  the applicable provisions of rule XXIII of the Rules of the House of
  Representatives. After the Committee rises and reports the resolution back
  to the House, the previous question shall be considered as ordered on the
  resolution and any amendments thereto to final passage without intervening
  motion; except that it shall be in order at any time prior to final passage
  (notwithstanding any other rule or provision of law) to adopt an amendment
  (or series of amendments) changing any figure or figures in the resolution
  as so reported to the extent necessary to achieve mathematical consistency.
  `(4) Debate in the House of Representatives on the conference report on
  any concurrent resolution on the budget shall be limited to not more than
  5 hours, which shall be divided equally between the majority and minority
  parties. A motion further to limit debate is not debatable. A motion to
  recommit the conference report is not in order, and it is not in order to
  move to reconsider the vote by which the conference report is agreed to
  or disagreed to.
  `(5) Appeals from decisions of the Chair relating to the application of
  the Rules of the House of Representatives to the procedure relating to
  any budget resolution shall be decided without debate.
  `(b) PROCEDURES IN THE SENATE AFTER REPORT OF COMMITTEE; DEBATE; AMENDMENTS-
  `(1) Debate in the Senate on any budget resolution, and all amendments
  thereto and debatable motions and appeals in connection therewith, shall be
  limited to not more than 50 hours, except that with respect to any budget
  resolution referred to in section 304 all such debate shall be limited to not
  more than 15 hours. The time shall be equally divided between, and controlled
  by, the majority leader and the minority leader or their designees.
  `(2) Debate in the Senate on any amendment to a budget resolution shall
  be limited to 2 hours, to be equally divided between, and controlled by,
  the mover and the manager of the budget resolution, and debate on any
  amendment to an amendment, debatable motion, or appeal shall be limited
  to 1 hour, to be equally divided between, and controlled by, the mover
  and the manager of the budget resolution, except that in the event the
  manager of the budget resolution is in favor of any such amendment,
  motion, or appeal, the time in opposition thereto shall be controlled by
  the minority leader or his designee. No amendment that is not germane to
  the provisions of the budget resolution shall be received. Such leaders,
  or either of them, may, from the time under their control on the passage
  of the budget resolution, allot additional time to any Senator during the
  consideration of any amendment, debatable motion, or appeal.
  `(3) A motion to further limit debate is not debatable. A motion to recommit
  (except a motion to recommit with instructions to report back within a
  specified number of days, not to exceed 3, not counting any day on which
  the Senate is not in session) is not in order. Debate on any such motion
  to recommit shall be limited to 1 hour, to be equally divided between,
  and controlled by, the mover and the manager of the budget resolution.
  `(4) Notwithstanding any other rule, an amendment or series of amendments
  to a budget resolution proposed in the Senate shall always be in order if
  such amendment or series of amendments proposes to change any figure or
  figures then contained in such budget resolution so as to make such budget
  resolution mathematically consistent or so as to maintain such consistency.
  `(c) PROCEDURES APPLICABLE TO BOTH HOUSES-
  `(1) Following the presentation of opening statements on the budget
  resolution for a fiscal year by the chairman and ranking minority member
  of the Committee on the Budget, there shall be a period of up to four
  hours for debate on economic goals and policies.
  `(2) Only if a budget resolution sets forth the economic goals (as described
  in sections 3(a)(2) and (4)(b) of the Full Employment Act of 1946) that the
  estimates, amounts, and levels set forth in that resolution are designed
  to achieve, shall it be in order to offer to that resolution an amendment
  relating to those goals, and that amendment shall be in order only if
  it also proposes to alter such estimates, amounts, and levels in germane
  fashion in order to be consistent with the goals proposed in such amendment.
  `(3) It shall not be in order to consider any amendment to a budget
  resolution that changes any figure contained therein by any amount other
  than one or more complete increments of $50 million.
  `(d) ACTION ON CONFERENCE REPORTS IN THE SENATE-
  `(1) The conference report on any budget resolution shall be in order in
  the Senate at any time after the third day (excluding Saturdays, Sundays,
  and legal holidays) following the day on which such conference report may be
  made even though a previous motion to the same effect has been disagreed to.
  `(2) During the consideration in the Senate of the conference report on any
  budget resolution, and all amendments in disagreement, and all amendments
  thereto, and debatable motions and appeals in connection therewith, debate
  shall be limited to 10 hours, to be equally divided between, and controlled
  by, the majority leader and minority leader or their designees. Debate
  on any debatable motion or appeal related to the conference report shall
  be limited to 1 hour, to be equally divided between, and controlled by,
  the mover and the manager of the conference report.
  `(3) Should the conference report be defeated, debate on any request for
  a new conference and the appointment of conferees shall be limited to 1
  hour, to be equally divided between, and controlled by, the manager of the
  conference report and the minority leader or his designee, and should any
  motion be made to instruct the conferees before the conferees are named,
  debate on such motion shall be limited to one-half hour, to be equally
  divided between, and controlled by, the mover and the manager of the
  conference report. Debate on any amendment to any such instructions shall
  be limited to 20 minutes, to be equally divided between and controlled
  by the mover and the manager of the conference report. In all cases when
  the manager of the conference report is in favor of any motion, appeal,
  or amendment, the time in opposition shall be under the control of the
  minority leader or his designee.
  `(4) In any case in which there are amendments in disagreement, time on each
  amendment shall be limited to 30 minutes, to be equally divided between,
  and controlled by, the manager of the conference report and the minority
  leader or his designee. No amendment that is not germane to the provisions
  of such amendments shall be received.
  `(e) REQUIRED ACTION BY CONFERENCE COMMITTEE- If at the end of the 10-day
  period (excluding Saturdays, Sundays, and legal holidays) beginning the
  day after the conferees of both Houses have been appointed to a committee
  of conference on a budget resolution, the conferees are unable to reach
  agreement with respect to all matters in disagreement between the two
  Houses, then the conferees shall submit to their respective Houses, on
  the first day thereafter on which their House is in session--
  `(1) a conference report recommending those matters on which they have agreed
  and reporting in disagreement those matters on which they have not agreed; or
  `(2) a conference report in disagreement, if the matter in disagreement
  is an amendment which strikes out the entire text of the budget resolution
  and inserts a substitute text.
  `(f) SENATE VOTES AND MATHEMATICAL CONSISTENCY- It shall not be in order
  in the Senate to vote on the question of agreeing to--
  `(1) a budget resolution unless the figures then contained in such resolution
  are mathematically consistent; or
  `(2) a conference report on a budget resolution unless the figures
  contained in such resolution, as recommended in such conference report,
  are mathematically consistent.
  `(g) Consideration of Conference Reports- Conference reports on concurrent
  resolutions on the budget shall be considered first in the House of
  Representatives.
`SEC. 303. RECONCILIATION.
  `(a) REQUIRED RECONCILIATION DIRECTIVES IN BUDGET RESOLUTIONS-
  `(1) If, for any fiscal year covered by a budget resolution, that
  resolution assumes the enactment of legislation (other than legislation
  making discretionary appropriations) that would decrease the deficit (or
  increase the surplus) as compared to existing law, then that resolution
  shall include reconciliation directives that--
  `(A) specify the amount by which outlays (resulting from new budget authority
  or spending requirements within the jurisdiction of a committee) are to be
  decreased and direct that committee to propose changes in law sufficient
  to accomplish that outlay decrease;
  `(B) specify the amount by which revenues are to be increased and direct
  the committees of jurisdiction to propose changes in law sufficient to
  accomplish that revenue increase;
  `(C) specify the amount by which the deficit is to be changed and direct
  committees to propose changes in laws within their jurisdiction sufficient
  to accomplish that change; or
  `(D) specify and direct any combination of the matters described in
  subparagraphs (A), (B), and (C).
Reconciliation directives may also cover assumed legislation (other than
discretionary appropriations) that would increase the deficit (or reduce
the surplus).
  `(2) It shall not be in order in the House of Representatives or the Senate
  to consider a budget resolution, or any amendment thereto or conference
  report thereon, that contains reconciliation directives to any committee
  to make changes in discretionary appropriations or in the authorization
  of such appropriations.
  `(b) REPORTING RECONCILIATION LEGISLATION-
  `(1) If a budget resolution directing one or more committees to propose
  changes in laws under subsection (a) is agreed to by Congress, each committee
  so directed shall make those legislative proposals and submit them to the
  Committee on the Budget of its House by June 10 of the current year.
  `(2) At the same time each committee submits its legislative proposals,
  it shall also submit to the Committee on the Budget of its House all
  the material that would be required by the rules of that House if the
  legislative proposals were bills to be reported to that House; and submit a
  categorization of each provision in its proposal as either (A) a reduction
  in outlays; (B) an increase in outlays; (C) a reduction in revenues or
  offsetting receipts; (D) an increase in revenues or offsetting receipts;
  (E) a budgetary provision with costs estimated at zero; (F) a cost-avoidance
  in discretionary programs; (G) changes in the level of authorization of
  discretionary appropriations; or (H) non-budgetary.
  `(3) The Committee on the Budget of each House shall promptly report to
  its House a reconciliation bill carrying out all such proposals without
  any substantive revision.
  `(c) PROCEDURE IN THE SENATE-
  `(1) Except as provided in paragraph (2), the provisions of section 302 for
  the consideration in the Senate of budget resolutions and conference reports
  thereon shall also apply to the consideration in the Senate of reconciliation
  bills reported under subsection (b) and conference reports thereon.
  `(2) Debate in the Senate on any reconciliation bill reported under
  subsection (b), and all amendments thereto and debatable motions and
  appeals in connection therewith, shall be limited to not more than 20 hours.
  `(d) AMENDMENTS TO RECONCILIATION BILLS-
  `(1) It shall not be in order in the House of Representatives or the Senate
  to consider any amendment to a reconciliation bill if that amendment would
  have the effect of increasing outlays for any item above the level of such
  outlays otherwise resulting from the bill (for the fiscal years covered by
  the reconciliation directive under subsection (a)), or would have the effect
  of reducing any revenue item below the level of such revenues otherwise
  resulting from the bill (for such fiscal years), unless such amendment
  makes at least an equivalent reduction in other outlays, an equivalent
  increase in other revenues, or an equivalent combination thereof (for such
  fiscal years), except that a motion to strike a provision shall always be
  in order in the Senate.
  `(2) Paragraph (1) shall not apply if a declaration of war by the Congress
  is in effect.
  `(3) The Committee on Rules of the House of Representatives may make in
  order amendments to achieve changes specified by reconciliation directives
  under subsection (a) if a committee of the House fails to submit proposals
  to its Committee on the Budget pursuant to its directive or if the proposals
  submitted by a committee do not comply with its directive.
  `(4) LIMITATION ON CHANGES TO SOCIAL SECURITY ACT- It shall not be in order
  in the Senate or the House of Representatives to consider any provision
  of a reconciliation bill reported under subsection (b) or any conference
  report thereon or amendment thereto that amends provisions of the old-age,
  survivors, and disability insurance program established under title II of
  the Social Security Act.
  `(e) COMPLETION OF RECONCILIATION PROCESS-
  `(1) IN GENERAL- The House of Representatives and the Senate shall pass the
  reconciliation bill reported under subsection (b) not later than June 30
  of each year and shall complete action on that bill by August 5 of that year.
  `(2) POINT OF ORDER- It shall not be in order in the House of Representatives
  or the Senate to consider any resolution providing for an adjournment
  period of more than three calendar days after August 5 of any year in which
  a reconciliation directive is issued under subsection (a) until Congress
  completes action on the reconciliation bill for that year reported under
  subsection (b).
`SEC. 304. PERMISSIBLE REVISIONS OF BUDGET RESOLUTIONS.
  `Any time after a budget resolution has been agreed to under section 301,
  the two Houses may adopt a concurrent resolution that revises that budget
  resolution. The revised budget resolution and the report thereon shall meet
  the requirements and be subject to the procedures set forth in section 301
  (except the May 1 requirement) and shall be considered a budget resolution
  under section 301.
`SEC. 305. APPROPRIATION BILLS.
  `(a) REPORTED TO HOUSE BY JUNE 10- On or before June 10 of each year,
  the Committee on Appropriations of the House of Representatives shall
  report annual appropriation bills providing new budget authority under
  the jurisdiction of all of its subcommittees for the budget year.
  `(b) HOUSE PASSAGE BY JUNE 30- It shall not be in order in the House of
  Representatives to consider any resolution providing for an adjournment
  period of more than three calendar days after June 30 of any year until the
  House of Representatives has approved annual appropriation bills providing
  new budget authority under the jurisdiction of all the subcommittees of
  the Committee on Appropriations for the budget year.
  `(c) SENATE PASSAGE BY AUGUST 5- It shall not be in order in the Senate
  to consider any resolution providing for an adjournment period of more
  than three calendar days after August 5 of any year until the Senate has
  approved annual appropriation bills providing new budget authority under
  the jurisdiction of all the subcommittees of the Committee on Appropriations
  for the budget year.
`SEC. 306. LEGISLATION DEALING WITH CONGRESSIONAL BUDGET MUST BE HANDLED BY
BUDGET COMMITTEES.
  `No bill or resolution, and no amendment to any bill or resolution,
  dealing with any matter within the jurisdiction of the Committee on the
  Budget of either House shall be considered in that House unless it is a
  bill or resolution that has been reported by the Committee on the Budget
  of that House (or from the consideration of which such committee has been
  discharged) or unless it is a germane amendment to such a bill or resolution.
`Subtitle II--Enforcement
`SEC. 310. COMMITTEE SPENDING ALLOCATIONS.
  `(a) HOUSE OF REPRESENTATIVES-
  `(1) ALLOCATION AMONG COMMITTEES- The joint explanatory statement
  accompanying a conference report on a budget resolution shall include an
  allocation, consistent with the resolution recommended in the conference
  report, of the appropriate levels of--
  `(A) total new budget authority,
  `(B) total spending requirements, and
  `(C) total outlays;
among each committee of the House of Representatives that has jurisdiction
over legislation providing or creating such amounts.
  `(2) NO DOUBLE COUNTING- Any item allocated to one committee of the House
  of Representatives may not be allocated to another such committee.
  `(3) FURTHER DIVISION OF AMOUNTS- The amounts allocated to each committee
  for each fiscal year, other than the Committee on Appropriations, shall
  be further divided between amounts provided or required by law on the
  date of filing of that conference report and amounts not so provided or
  required. The amounts allocated to the Committee on Appropriations for each
  fiscal year shall be further divided between discretionary and mandatory
  amounts or programs, as appropriate.
  `(b) SENATE ALLOCATION AMONG COMMITTEES- The joint explanatory statement
  accompanying a conference report on a budget resolution shall include an
  allocation, consistent with the resolution recommended in the conference
  report, of the appropriate levels of--
  `(1) total new budget authority, and
  `(2) total outlays;
among each committee of the Senate that has jurisdiction over legislation
providing or creating such amounts.
  `(c) FISCAL YEARS COVERED BY ALLOCATION- For the Committee on Appropriations
  of each House, amounts shall be separately allocated for the budget year
  and the current year. For all other committees, amounts shall be separately
  allocated for each fiscal year covered by that resolution.
  `(d) AMOUNTS NOT ALLOCATED- If a committee receives no allocation of new
  budget authority or spending requirements, that committee shall be deemed
  to have received an allocation equal to zero for new budget authority or
  spending requirements.
`SEC. 311. SUBALLOCATIONS BY THE APPROPRIATIONS COMMITTEES.
  `(a) INITIAL SUBALLOCATIONS- As soon as practicable after a budget
  resolution is agreed to, the Committee on Appropriations of each House
  (after consulting with the Committee on Appropriations of the other House)
  shall suballocate each amount allocated to it for the budget year under
  sections 310 among its subcommittees.
  `(b) REVISED ALLOCATION- If a revised allocation is made in connection
  with a revised budget resolution under section 304, the Committees on
  Appropriations shall make revised suballocations if amounts allocated to
  them have been changed.
  `(c) REVISED SUBALLOCATIONS- The Committee on Appropriations of either
  House may revise any suballocations it makes under this section.
  `(d) FILING- Each Committee on Appropriations shall promptly report to
  its House suballocations made or revised under this section.
`SEC. 312. ADOPTION OF BUDGET RESOLUTION MUST PRECEDE CONSIDERATION OF
BUDGET LEGISLATION.
  (a) IN GENERAL- It shall not be in order in the House of Representatives
  or the Senate to consider any bill or resolution as reported to its House,
  or amendment thereto or conference report thereon, that--
  `(1) provides new budget authority for a fiscal year;
  `(2) creates a new spending requirement that is first effective in a fiscal
  year; or
  `(3) provides a decrease in revenues that is first effective in a fiscal
  year;
until a budget resolution covering that year is adopted, allocations have
been made under section 310, and in the case of legislation reported by the
Committee on Appropriations of either House, suballocations have been filed
under section 311.
  `(b) EXCEPTIONS- Subsection (a) shall not apply to--
  `(1) new budget authority for the budget year in any appropriation bill
  or resolution making continuing appropriations, or amendment thereto or
  conference report thereon, that is considered after May 1 and before the
  following January 1 if a budget resolution for that budget year has not
  been adopted;
  `(2) new budget authority for any outyear in any appropriation bill or
  resolution making continuing appropriations, or amendment thereto or
  conference report thereon; or
  `(3) new budget authority in a fiscal year beyond the last year covered
  by the most recent allocation made under section 310 if that new budget
  authority occurs in such year as the result of a spending requirement
  first effective during the period covered by that allocation.
  `(c) PROCEDURE FOR WAIVER IN THE SENATE-
  `(1) The committee of the Senate that reports any bill or resolution (or
  amendment thereto) to which subsection (a) applies may, at or after the
  time it reports such bill or resolution (or amendment), report a resolution
  to the Senate--
  `(A) providing for the waiver of subsection (a) with respect to that bill
  or resolution (or amendment), and
  `(B) stating the reasons why the waiver is necessary.
The resolution shall then be referred to the Committee on the Budget of the
Senate. That committee shall report the resolution to the Senate within 10
days after the resolution is referred to it (not counting any day on which
the Senate is not in session) beginning with the day following the day on
which it is so referred, accompanied by that committee's recommendations
and reasons for such recommendations with respect to the resolution. If the
committee does not report the resolution within the 10-day period, it shall
automatically be discharged from further consideration of the resolution
and the resolution shall be placed on the calendar.
  `(2) During the consideration of any such resolution, debate shall be
  limited to one hour, to be equally divided between, and controlled by,
  the majority leader and minority leader or their designees, and the time
  on any debatable motion or appeal shall be limited to twenty minutes, to be
  equally divided between, and controlled by, the mover and the manager of the
  resolution. In the event the manager of the resolution is in favor of any
  such motion or appeal, the time in opposition thereto shall be controlled
  by the minority leader or his designee. Such leaders, or either of them,
  may, from the time under their control on the passage of such resolution,
  allot additional time to any Senator during the consideration of any
  debatable motion or appeal. No amendment to the resolution is in order.
  `(3) If, after the Committee on the Budget has reported (or been discharged
  from further consideration of) the resolution, the Senate agrees to the
  resolution, then subsection (a) shall not apply with respect to the bill
  or resolution (or amendment thereto) to which the resolution so agreed
  to applies.
`SEC. 313. ENFORCING SPENDING AND REVENUE FIGURES.
  `It shall not be in order in the House of Representatives or the Senate
  to consider any spending or revenue legislation if, as proposed to be
  enacted and when added to amounts already enacted (if any), it would
  breach the appropriate allocation of new budget authority or new spending
  requirements under, or the aggregate levels of revenues established in,
  the most recently agreed-to budget resolution.
`SEC. 314. INTERPRETATION OF POINTS OF ORDER.
  `For purposes of section 313--
  `(1) LEGISLATION- The term `legislation' means--
  `(A) any bill, resolution, or conference report, (as reported to its
  House); or
  `(B) any amendment.
  `(2) SPENDING LEGISLATION- The term `spending legislation' means legislation
  providing new budget authority for a fiscal year or creating new spending
  requirements effective in a fiscal year.
  `(3) REVENUE LEGISLATION- The term `revenue legislation' means legislation
  that results in a change in the level of revenues in a fiscal year.
  `(4) ENACT- The term `enact' means passage of a bill or resolution in
  identical form by both Houses, except a vetoed bill or resolution when
  the veto message is referred to committee in either House or when either
  House votes to sustain the veto.
  `(5) BREACH- The term `breach' means--
  `(A) with regard to a level of new budget authority or new spending
  requirements (as applicable), exceed or further exceed; or
  `(B) with regard to an aggregate level of revenues, fall below, or fall
  further below.
  `(6) AGGREGATE LEVELS OF REVENUES- The term `aggregate levels of revenues'
  means the total level of revenues under section 301(c)(2) for the budget
  year, for the current year, or for the total six-year period comprising
  the current year, the budget year, and the outyears.
  `(7) APPROPRIATE ALLOCATION IN THE HOUSE-
  `(A) With regard to the Committee on Appropriations of the House of
  Representatives, the term `appropriate allocation' means--
  `(i) the allocation to that committee of discretionary budget authority
  for the budget year under section 310 and each suballocation of that
  discretionary budget authority under section 311; or
  `(ii) the allocation to that committee of discretionary budget authority
  for the current year under section 310.
  `(B) With regard to any other committee of the House of Representatives,
  the term `appropriate allocation' means its allocation under section 310
  of amounts of spending requirements or new budget authority not provided
  or required by law on the date of filing of the conference report on that
  year's budget resolution (i) for the budget year; (ii) for the current
  year; or (iii) for the six-year period comprising the current year, the
  budget year, and the outyears.
  `(8) APPROPRIATE ALLOCATION IN THE SENATE- The term `appropriate allocation'
  means--
  `(A) with regard to the Committee on Appropriations of the Senate--
  `(i) the allocation to that committee of new budget authority for the
  budget year under section 310 and each suballocation of new budget authority
  under section 311; or
  `(ii) the allocation to that committee of new budget authority for the
  current year under section 310; and
  `(B) with regard to any other committee of the Senate, its allocation under
  section 310 of new budget authority for the budget year, for the current
  year, or for the total six-year period comprising the current year, the
  budget year, and the outyears.
`Subtitle III--Scorekeeping
`SEC. 320. BUDGET COMMITTEE DETERMINATIONS.
  `(a) DETERMINATIONS- For purposes of determinations and points of order under
  sections 312 and 313, the existence and levels of spending requirements,
  new budget authority, and revenues for a fiscal year shall be determined
  on the basis of classifications and estimates made by the Committee on the
  Budget of the House of Representatives or the Senate, as the case may be,
  after consultation with the Congressional Budget Office.
  `(b) GUIDELINES- Among the guidelines which the Committees on the Budget
  shall apply in carrying out their duties under subsection (a) are the
  following:
  `(1) Determinations by the Committees on the Budget shall be based upon the
  common economic and technical assumptions set forth in the joint explanatory
  statement accompanying the most recently agreed to budget resolution.
  `(2) Whenever a law, bill, or resolution makes the existence or levels
  of revenues, spending requirements, or new budget authority (other than
  discretionary appropriations) contingent upon conditions (other than the
  enactment of subsequent legislation), the conditions shall be assumed to
  be satisfied except to the extent that the Committee on the Budget of the
  appropriate House determines otherwise.
  `(3) Whenever the level of revenues, spending requirements, or new budget
  authority (other than discretionary appropriations) provided by a law,
  bill, or resolution is affected by administrative or other discretion,
  the Committee on the Budget of the appropriate House shall make its best
  estimate of the effect of such discretion on such level.
  `(4) Whenever an appropriation provides discretionary new budget authority
  contingent upon the enactment of legislation other than future appropriation
  Acts, that appropriation shall be deemed to provide the new budget authority.
`SEC. 321. DIRECTED SCOREKEEPING AND OFF-BUDGET DESIGNATIONS.
  `(a) SCORING ONLY AFTER ENACTMENT- In determining any classification or
  estimate of new budget authority, outlays, spending requirements, and
  revenues under titles III and IV, the definitions and guidelines in this
  Act shall be used unless legislation enacted, or a resolution agreed to,
  before the determination of such classification or estimate specifically
  directs otherwise.
  `(b) BUDGETARY TREATMENT OF GOVERNMENT-SPONSORED ENTERPRISES- A
  Government-sponsored enterprise is not a Federal entity under this Act
  and shall be excluded from the totals of the budget of the United States.
  `(c) POINTS OF ORDER-
  `(1) No bill or resolution carrying a direction that existing law,
  pending legislation, or future legislation be scored in a manner
  inconsistent with this Act or projected in a manner inconsistent with the
  Truth-in-Budgeting Reform Act of 1990 shall be reported by any committee
  other than the Committee on the Budget or the Committee on Rules in the
  House of Representatives or the Committee on the Budget or the Committee
  on Rules and Administration in the Senate. No amendment carrying such a
  direction shall be in order during consideration of a bill or resolution
  not reported by one of those committees. A question of order on such a
  direction may be raised at any time.
  `(2) No bill or resolution excluding a new or existing Federal entity from
  the budget of the United States may be reported by any committee other than
  the Committee on Government Operations in the House of Representatives or
  the Committee on Governmental Affairs in the Senate. No amendment carrying
  such an exclusion shall be in order during consideration of a bill or
  resolution not reported by one of those committees. A question of order
  on such an exclusion may be raised at any time.
  `(3) It shall not be in order in the House of Representatives or the
  Senate to consider a conference report that contains matter that would
  be a violation of paragraph (1) or (2) if contained in a reported bill
  or resolution.
`SEC. 322. NEW TIMING SHIFTS NOT COUNTED.
  `Changes in the level of new budget authority, new spending requirements,
  outlays, or revenues resulting from new timing shifts shall not be counted.
`SEC. 323. BILL COST ESTIMATES; BUDGET COMMITTEE SCOREKEEPING REPORTS.
  `(a) COMMITTEE REPORTS ON LEGISLATION-
  `(1) Whenever a committee of either House reports a bill or resolution
  or committee amendment thereto, providing new budget authority (except a
  continuing appropriation for less than the entire fiscal year) or increasing
  or decreasing spending requirements or revenues in one or more fiscal years,
  the report accompanying that bill or resolution shall contain a statement,
  or the committee shall make available such a statement in the case of an
  approved committee amendment that is not reported to its House, prepared
  after consultation with the Director of the Congressional Budget Office,
  that--
  `(A) compares the levels in such measure to the appropriate allocations
  or suballocations under section 310 or 311 for the most recently agreed
  to budget resolution for such fiscal years;
  `(B) includes an identification of any new spending requirements contained
  in such measure and a justification for the use of that financing method
  instead of annual discretionary appropriations;
  `(C) contains an estimate by the Congressional Budget Office of how such
  measure will affect the levels of new budget authority, outlays, spending
  requirements, and revenues for the current year, budget year, and outyears,
  if timely submitted;
  `(D) contains an identification prepared by the CBO of each provision that
  is a new timing shift as defined in this Act, if timely submitted; and
  `(E) contains an estimate by the Congressional Budget Office of the level
  of new budget authority for assistance to State and local governments
  provided by such measure, if timely submitted.
  `(2) Whenever a conference report is filed in either House and such
  conference report or any amendment reported in disagreement or any amendment
  contained in the joint statement of managers to be proposed by the conferees
  in the case of technical disagreement on such bill or resolution provides
  new budget authority (except a continuing appropriation for less than the
  entire fiscal year) or increases or decreases spending requirements or
  revenues for a fiscal year, the statement of managers accompanying such
  conference report shall contain the information described in paragraph (1),
  if available on a timely basis. If such information is not available when
  the conference report is filed, the committees of jurisdiction shall make
  such information available to the Members as soon as practicable before
  the consideration of such conference report.
  `(b) UP-TO-DATE BUDGET COMMITTEE TABULATIONS OF CONGRESSIONAL BUDGET ACTION-
  The Committee on the Budget of each House shall make available to Members
  of its House summary budget scorekeeping reports. Such reports--
  `(1) shall be made available on at least a monthly basis, but in any case
  frequently enough to provide Members of each House an accurate representation
  of the current status of congressional consideration of the budget;
  `(2) shall include summaries of the levels of new budget authority, spending
  requirements, outlays, and revenues associated with existing law and with
  bills and resolutions passed by the respective House; and
  `(3) shall be based on information provided by the Congressional Budget
  Office.
The chairman of the Committee on the Budget of the House of Representatives
shall submit such reports to the Speaker.'.
SEC. 404. AMENDMENTS TO TITLE IV OF THE CONGRESSIONAL BUDGET ACT OF 1974.
  The Congressional Budget Act of 1974 is amended by repealing sections 401,
  402, and 404, by redesignating sections 403, 405, 406, and 407 as sections
  405, 406, 407, and 408, respectively, and by inserting before section 405
  (as redesignated) the following new sections:
`SEC. 401. BILLS PROVIDING CONTRACT OR BORROWING AUTHORITY.
  `No bill or resolution providing contract authority or borrowing authority
  shall be reported by any committee other than the Committee on Appropriations
  of either House. No amendment providing contract authority or borrowing
  authority shall be in order during consideration of a bill or resolution
  not reported by the Committee on Appropriations of either House. A question
  of order on such a provision may be raised at any time. It shall not be
  in order in the House of Representatives or the Senate to consider any
  conference report that provides contract authority or borrowing authority
  other than a conference report on a bill or resolution reported by the
  Committee on Appropriations of either House.
`SEC. 402. BILLS PROVIDING CREDIT AUTHORITY.
  `No bill or resolution providing the authority to incur direct loan
  obligations or make loan guarantee commitments shall be reported by any
  committee other than the Committee on Appropriations of either House. No
  amendment providing the authority to incur direct loan obligations or
  make loan guarantee commitments shall be in order during consideration
  of a bill or resolution not reported by the Committee on Appropriations
  of either House. A question of order on such a provision may be raised
  at any time. It shall not be in order in the House of Representatives or
  the Senate to consider any conference report that provides the authority
  to incur direct loan obligations or make loan guarantee commitments other
  than a conference report on a bill or resolution reported by the Committee
  on Appropriations of either House.
`SEC. 403. BILLS REDUCING OFFSETTING COLLECTIONS.
  `No bill or resolution that reduces offsetting collections credited to
  an account contained in an appropriation Act shall be reported by any
  committee other than the Committee on Appropriations of either House. No
  amendment that reduces offsetting collections credited to an account
  contained in an appropriation Act shall be in order during consideration
  of a bill or resolution not reported by the Committee on Appropriations
  of either House. A question of order on such a provision may be raised
  at any time. It shall not be in order in the House of Representatives
  or the Senate to consider any conference report that reduces offsetting
  collections credited to an account contained in an appropriation Act other
  than a conference report on a bill or resolution reported by the Committee
  on Appropriations of either House.
`SEC. 404. EXCEPTIONS TO CONTROLS ON BACKDOOR SPENDING.
  `Section 401, 402, or 403 shall not apply if the authority or collections
  referred to in such section is derived from or collected into--
  `(1) a trust fund, at least 90 percent of whose receipts consist or will
  consist of amounts (transferred from the general fund of the Treasury)
  equivalent to amounts of taxes (related to the purposes for which such
  trust fund exists) received under specified provisions of the Internal
  Revenue Code of 1986;
  `(2) gifts or bequests made to the Government for a specific purpose; or
  `(3) any government corporation set forth in section 9101 of title 31,
  United States Code, as of January 1, 1990.'.
SEC. 405. JOINT COMMITTEE ON TAXATION ESTIMATES.
  (a) Section 201 of the Congressional Budget Act of 1974 is amended by
  redesignating subsection (f) as subsection (g) and by inserting after
  subsection (e) the following:
  `(f) RELATIONSHIP TO JOINT COMMITTEE ON TAXATION- For purposes of providing
  information on legislation affecting income, payroll, excise, estate or
  gift taxes, the Office shall exclusively use revenue estimates prepared by
  the Joint Committee on Taxation, if timely received. The joint committee
  shall prepare such estimates upon the request of the Office, in the following
  order of priority: legislation reported by committee or conference committee;
  estimates needed by the Office in preparing its annual report under section
  202(f); proposals for the chairman of the Committee on Ways and Means,
  Finance, or the Budget; proposals for any other member of those committees;
  and proposals for any other Member of Congress. Estimates prepared by the
  joint committee shall be consistent with the economic assumptions used in
  the applicable budget resolution; shall compare legislation or proposals
  to the baseline used in constructing that budget resolution; and shall
  cover the current year, the budget year, and each outyear.'.
  (b) CONFORMING AMENDMENT- Section 273 of the Balanced Budget and Emergency
  Deficit Control Act of 1985 is repealed.
SEC. 406. DUTIES OF CONGRESSIONAL BUDGET OFFICE.
  Section 202(f)(1) of the Congressional Budget Act of 1974 is amended
  by adding at the end the following: `Such report shall also include a
  projection for the period of 5 fiscal years beginning with such fiscal year
  of (A) total new budget authority and total outlays for each fiscal year
  in such period; (B) revenues to be received and the major sources thereof,
  and the surplus or deficit, if any, for each fiscal year in such period;
  and (C) tax expenditures for each fiscal year in such period.'.
SEC. 407. SENATE WAIVERS.
  (a) Sections 904 (b) and (c) of the Congressional Budget Act of 1974 are
  amended to read as follows:
  `(b) Any provision of title III or IV may be waived or suspended in the
  Senate by the unanimous consent of the Senate or by a majority vote of
  the Members voting, a quorum being present.'.
  (b) Section 904(d) of the Congressional Budget Act of 1974 is redesignated
  as 904(c).
  (c) Sections 271 (a), (b), and (c) of the Balanced Budget and Emergency
  Deficit Control Act of 1985 are repealed and in subsection (d) of such
  section strike `(d) RULEMAKING POWERS- '.
TITLE V--CREDIT REFORM
SEC. 501. CREDIT REFORM.
  Title V of the Congressional Budget Act of 1974 is amended to read as
  follows:
`TITLE V--CREDIT REFORM
`SEC. 501. COST TO THE GOVERNMENT.
  `As used in this title, the term `cost' means the cost to the Government
  of any direct loan or loan guarantee, including the cost of and receipts
  from insurance purchased by the Government, except indirect costs such as
  administrative costs or any effect on revenues, and shall be calculated
  as follows:
  `(1) DIRECT LOANS- For a direct loan to the public made by the Government,
  the difference between the face value of the loan and the net present
  value of--
  `(A) the expected repayments of principal; and
  `(B) payments of interest and other payments;
to the Government by the borrower over the life of the loan, after adjusting
for estimated defaults, prepayments, fees, penalties, and any other recoveries.
  `(2) LOAN GUARANTEES-
  `(A) IN GENERAL- For a loan made by a private lender to a private borrower
  that is guaranteed as to principal or interest, in whole or in part,
  by the Government, the net present value of (i) estimated payments by
  the Government to cover defaults, (ii) any interest payments made by
  the Government, and (iii) receipts (such as origination and other fees,
  penalties, and other recoveries) by the Government.
  `(B) DEPOSIT INSURANCE- Deposit insurance shall be treated as a loan
  guarantee.
  `(3) CHANGES IN COSTS- Any government action that alters any factors used
  in estimating costs of direct loans or loan guarantees shall be treated as
  increasing or decreasing, as the case may be, the cost to the Government
  of such loans or guarantees.
  `(4) DISCOUNT RATE- The estimated average interest rate on new issues
  of Treasury securities of similar maturity to the direct loans or loan
  guarantees being estimated shall be used as the discount to present value.
`SEC. 502. BUDGETARY ACCOUNTING.
  `(a) NEW BUDGET AUTHORITY- The authority to incur new direct loan obligations
  or make new loan guarantee commitments is new budget authority in an amount
  equal to the cost (as defined in section 501), in the fiscal year in which
  the authority to incur the obligation or commitment becomes available.
  `(b) OUTLAYS- Outlays resulting from new budget authority referred to in
  subsection (a) shall be recorded in the fiscal years in which a direct
  loan is disbursed or a loan guarantee commitment is made.
  `(c) RESIDUAL CASH FLOW-
  `(1) IN GENERAL- All flows of cash relating to direct loan obligations and
  loan guarantee commitments (including those made before fiscal year 1991)
  other than the outlays recorded pursuant to subsection (b) shall be a
  means of financing the deficit.
  `(2) EXPENDITURES OF DEPOSIT INSURANCE AGENCIES- Obligations and
  disbursements of Federal deposit insurance agencies made to forestall more
  costly insurance claims shall be a means of financing the deficit.
`SEC. 503. CONGRESSIONAL CONTROL OF LOAN COSTS.
  `(a) APPROPRIATION REQUIRED- Notwithstanding any other provision of
  law, new direct loan obligations may be incurred and new loan guarantee
  commitments may be made after September 30, 1990, only to the extent that
  appropriations of new budget authority to cover their costs are made in
  appropriation Acts enacted after the date of enactment of this title.
  `(b) NEW BUDGET AUTHORITY AND GROSS LOAN LEVELS- Whenever any Act
  appropriates an amount of new budget authority for fiscal year 1991 or
  thereafter insufficient to fund the cost of the gross loan level specified
  in such Act for a particular program, there are hereby appropriated such
  additional amounts of new budget authority as are necessary to fund the
  costs of such program.
  `(c) EXEMPTION FOR MANDATORY PROGRAMS- Subsection (a) shall not apply to
  any loan program that constitutes a spending requirement, such as loan
  programs administered by the Commodity Credit Corporation, the Guaranteed
  Student Loan Programs, the Veterans' Administration home loan programs,
  and Federal deposit insurance programs.
`SEC. 504. EXECUTIVE BRANCH COST ESTIMATES.
  `For the executive branch, all estimates required by this subtitle shall
  be made by the Director of the Office of Management and Budget after
  consultation with the agencies that administer loan programs (or, if he
  delegates such authority, by those agencies), and shall be based upon
  guidelines, regulations, or criteria (consistent with the definitions
  in this subtitle) established by the Secretary of the Treasury after
  consultation with the Director of the Office of Management and the Budget
  and the Director of the Congressional Budget Office.
`SEC. 505. BUDGET PRESENTATION OF COSTS.
  `(a) ACTUALS- For fiscal year 1991 and each ensuing fiscal year, end-of-year
  loan costs contained in the President's budget shall be revised to the
  extent that estimates of such costs proved inaccurate when the loan was
  repaid, prepaid, or fully defaulted.
  `(b) YEARS BEFORE FISCAL YEAR 1991- The Office of Management and Budget
  shall, to the extent possible, make summary estimates of loan costs incurred
  in years before fiscal year 1991 and shall make such information available
  to supplement or adjust (as appropriate) historical data for such years.'.
TITLE VI--STATUTORY LIMIT ON THE PUBLIC DEBT
SEC. 601. STATUTORY LIMIT ON THE PUBLIC DEBT.
  Title III of the Congressional Budget Act of 1974, as amended by this Act,
  is amended by adding at the end the following new subtitle:
`Subtitle V--Statutory Limit on the Public Debt
`ESTABLISHMENT OF STATUTORY LIMIT ON THE PUBLIC DEBT
  `SEC. 340. (a) IN GENERAL-
  `(1) Upon the adoption by the Congress (under section 301 and 304) of
  any concurrent resolution on the budget setting forth as the appropriate
  level of the public debt for the period to which such concurrent budget
  resolution relates an amount that differs from the amount of the statutory
  limit on the public debt that would otherwise be in effect for such period,
  the enrolling clerk of the House of Representatives shall prepare an
  engrossment of a joint resolution, in the form prescribed in subsection
  (b), increasing or decreasing the statutory limit on the public debt.
  `(2) The votes by which the conference report on the concurrent resolution
  on the budget was agreed to in the House and the Senate, respectively
  (or by which the concurrent budget resolution itself was adopted in the
  House and the Senate, respectively, if there is no conference report),
  shall be deemed to have been votes in favor of the joint resolution prepared
  pursuant to paragraph (1) upon final passage in the House of Representatives
  and the Senate, respectively.
  `(3) Upon the engrossment of the joint resolution prepared pursuant to
  paragraph (1), it shall be deemed to have passed the House of Representatives
  and been duly certified and examined; the engrossed copy shall be signed
  by the Clerk and transmitted to the Senate. Upon the receipt of the joint
  resolution by the Senate it shall be deemed to have passed the Senate and
  been duly certified and examined. Upon certification in the Senate, the
  joint resolution shall be signed by the presiding officers of both Houses
  and presented to the President for signature (and otherwise treated for all
  purposes) in the manner provided for bills and joint resolutions generally.
  `(b) FORM OF JOINT RESOLUTION-
  `(1) The matter after the resolving clause in any joint resolution described
  in subsection (a) shall be as follows:  `That subsection (b) of section
  3101 of title 31, United States Code, is amended by striking the dollar
  limitation contained in such subsection and inserting `$----------------' ',
  with the blank being filled in with a limitation equal to the appropriate
  level of the public debt as set forth, pursuant to section 301(a)(5)
  in the concurrent resolution on the budget (whether such resolution was
  adopted under section 301, 304, or 310 of such Act).
  `(2) Only one joint resolution shall be prepared under subsection (a)
  upon the adoption of any joint resolution on the budget.
  `(c) REPORTS OF COMMITTEES ON THE BUDGET-
  `(1) The reports of the Committees on the Budget of the House of
  Representatives and Senate, respectively, accompanying any concurrent
  resolution on the budget under section 301(d), as well as the joint
  explanatory statement accompanying the conference report on any concurrent
  resolution on the budget, shall contain a clear statement of the effect
  under this rule that the adoption by both the House and the Senate of such
  concurrent resolution in the form in which it is being reported (and the
  adoption of the joint resolution thereupon prepared and enrolled under
  subsection (a)) would have upon the statutory limit on the public debt.
  `(2) It shall not be in order in the House of Representatives at any time
  to consider or adopt any concurrent resolution on the budget (or agree
  to any conference report thereon) if at that time the report accompanying
  such concurrent budget resolution (or the joint statement accompanying such
  conference report) does not comply with the requirements of this subsection.
  `(d) AUTHORITY OF THE HOUSE AND SENATE- Except as provided in section 310(g),
  nothing in this section shall be construed as limiting or otherwise affecting
  the power of the House of Representatives or the Senate to consider and
  pass a bill that (without regard to the procedures under subsection (a))
  changes the statutory limit on the public debt most recently established
  under this section or otherwise; and the rights of Members and committees
  of the House and Senate, respectively, with respect to the introduction,
  consideration, and reporting of any such bill shall be determined as though
  this section had not been enacted.
  `(e) DEFINITIONS- As used in this section, the term `statutory limit on
  the public debt' means the maximum face amount of obligations issued under
  authority of chapter 31 of title 31, United States Code, and obligations
  guaranteed as to principal and interest by the United States (except such
  guaranteed obligations as may be held by the Secretary of the Treasury),
  determined under section 3101(b) of title 31 after the application of
  section 3101(a), title 31, that may be outstanding at any one time.'.
TITLE VII--BUDGET CONTENTS
SEC. 701. BUDGET CONTENTS.
  Section 1105(a) of title 31, United States Code, is amended by adding the
  following new paragraph:
  `(28) The budget transmitted pursuant to subsection (a) for a fiscal year
  shall include charts showing:
  `(A) the percentage breakdown of total budget revenues and total budget
  outlays of the United States Government including the receipts, reflected
  as revenues, and the disbursements, reflected as outlays, of the Federal
  Old-Age and Survivors Insurance Trust Fund and the Federal Disability
  Insurance Trust Fund; and
  `(B) the percentage breakdown of total budget revenues and total budget
  outlays of the United States Government excluding receipts and disbursements
  of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal
  Disability Insurance Trust Fund.'.
TITLE VIII--CONFORMING AMENDMENTS
SEC. 801. CONFORMING AMENDMENTS TO PRESIDENTIAL BUDGET REQUIREMENTS.
  (a) COMPARABLE DEFINITIONS AND TREATMENTS- Section 1101 of title 31, United
  States Code, is amended by adding at the end the following new paragraphs--
  `(3) other terms used herein, and all terms used in any budget submitted
  under section 1105(a) or 1106 shall have the meanings set forth in section
  3 of the Congressional Budget and Impoundment Control Act of 1974.
  `(4) estimates used in any budget submitted under sections 1105(a) or
  1106 shall follow the scorekeeping guidelines and rules specified in the
  Congressional Budget Act of 1974.'.
  (b) COMPARABLE YEAR-TO-YEAR FIGURES- For any budget year, the Director of
  the Office of Management and Budget shall, to the extent possible, conform
  budget data for years prior to the budget year 1991 to the definitions,
  treatments, and estimating rules applicable under this Act and the amendments
  made by this Act to that budget year.
  (c) SUBMISSION DATE- Section 1105(a) of title 31, United States Code,
  is amended by striking `first Monday after January 3' and by inserting
  `second Monday after January 3'.
SEC. 802. CONFORMING AMENDMENTS TO HOUSE AND SENATE RULES REGARDING BACKDOOR
SPENDING.
  (a) NEW SPENDING AUTHORITY- Clause 1(b)(4) of rule X of the House of
  Representatives is repealed.
  (b) REFERRAL OF NEW SPENDING AUTHORITY- Clause 4(a)(2) of rule X of the House
  of Representatives is repealed and clause 4(a)(3) is renumbered accordingly.
  (c) NEW SPENDING AUTHORITY- Paragraphs 1(b)(3) and 1(b)(4) of rule XXV of
  the Standing Rules of the Senate are repealed.
SEC. 803. CONFORMING AMENDMENT TO HOUSE RULES REGARDING MULTIYEAR REVENUE
ESTIMATES.
  Clause 7(a)(1) of rule XIII of the House of Representatives is amended by
  striking `, except that, in the case of measures affecting the revenues,
  such reports shall require only an estimate of the gain or loss in revenues
  for a one-year period'.
SEC. 804. CONFORMING AMENDMENT TO HOUSE RULES REGARDING CONGRESSIONAL RESPONSE
TO PRESIDENTIAL ORDER.
  Clause 1(e)(2) of rule X of the House of Representatives is amended by
  striking `Act, and any resolution pursuant to section 254(b) of the Balanced
  Budget and Emergency Deficit Control Act of 1985' and inserting `Act'.
SEC. 805. CONFORMING AMENDMENTS TO HOUSE RULES REGARDING RECONCILIATION.
  Rule X of the House of Representatives is amended--
  (1) in clause 4(b)(3) by striking `and resolutions'; and
  (2) in clause 4(i) by striking `laws, bills, or resolutions' and inserting
  `laws' and by striking `or resolution (or both)'.
SEC. 806. CONFORMING AMENDMENT TO HOUSE RULES REGARDING SUBALLOCATIONS.
  Clause 4(h) of rule X of the House of Representatives is amended by striking
  `each standing committee of the House (after consulting with the appropriate
  committee or committees of the Senate) shall subdivide any allocations'
  and inserting `the Committee on Appropriations (after consulting with the
  Committee on Appropriations of the Senate) shall subdivide the allocations'
  and by striking `section 302' and inserting `section 311'.
SEC. 807. CONFORMING AMENDMENTS TO HOUSE RULES, SENATE RULES, AND THE
CONGRESSIONAL BUDGET ACT OF 1974 REGARDING DEFINITIONS.
  (a) Clause 1(e)(2) of rule X of the Rules of the House of Representatives
  is amended by striking `(a)(4)'.
  (b) Paragraph 1(e)(1) of rule XXV of the Standing Rules of the Senate is
  amended by striking `(a)(4)'.
  (c) Section 202(a)(1) and the second sentence of 202(f)(1) of the
  Congressional Budget Act of 1974 are amended by striking `budget authority'
  and inserting `new budget authority'.
  (d) Clause 4(a)(2) of rule X of the House of Representatives (as
  renumbered) is amended by striking `spending authority' and inserting
  `spending requirements'.
  (e) Clause 2(l)(3)(B) of rule XI of the House of Representatives is amended
  to read as follows: `(B) the statement required by section 323(a)(1)
  of the Congressional Budget Act of 1974;'.
  (f) Clause 2(l)(3)(C) of rule XI of the House of Representatives is
  amended to read as follows: `(C) the estimate and comparison prepared by
  the Director of the Congressional Budget Office under section 406; and'.
SEC. 808. CONFORMING AMENDMENT TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT
CONTROL ACT OF 1974 TABLE OF CONTENTS.
  Section 1(b) of the Congressional Budget and Impoundment Control Act of
  1974 is amended to reflect the new section numbers and headings created
  by this Act.
SEC. 809. CONFORMING AMENDMENT TO PUBLIC LAW 100-119 REGARDING TIMING SHIFTS.
  Section 202 of Public Law 100-119 is repealed.
TITLE IX--EFFECTIVE DATE
SEC. 901. EFFECTIVE DATE.
  The amendments made by this Act shall apply with respect to fiscal years
  beginning after September 30, 1990.