Summary: H.R.1516 — 104th Congress (1995-1996)All Information (Except Text)

There is one summary for H.R.1516. Bill summaries are authored by CRS.

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Introduced in House (04/07/1995)

TABLE OF CONTENTS:

Title I: Balancing the Budget

Title II: Technical and Conforming Amendments

Balanced Budget Enforcement Act of 1995 - Title I: Balancing the Budget - Part A: Purpose - Repeals parts C (Emergency Powers to Eliminate Deficits in Excess of Maximum Deficit Amount), D (Budgetary Treatment of Social Security Trust Funds), and E (Miscellaneous and Related Provisions) of the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act).

Part B: The Deficit Elimination Act of 1995 - Sets, for FY 1996 through 2002: (1) deficit reduction targets for direct spending and receipts legislation; and (2) discretionary funding limits, measured in terms of new budget authority. Permits adjustments, whenever appropriate, to discretionary funding limits to reflect the following: (1) changes in concepts; (2) changes in inflation; (3) expiring housing contracts; (4) emergencies; (5) new limits for 2002 and thereafter; and (6) transportation trust funds. Makes provisions: (1) for balancing the budget in 2002; and (2) preventing deficits after 2002. Provides for: (1) a spin-off law, if required, to balance the budget in 2002 and to prevent deficits after 2002; and (2) targeted sequestration if a spin-off law is in effect for a year on the date of the final sequestration report for that year.

(Sec. 106) Establishes a scorecard for: (1) FY 1996 through 2002 upon which shall be entered the estimated increase or decrease in the deficit; (2) FY 2003 and thereafter upon which shall be entered the estimated increase or decrease in the deficit or surplus; and (3) years after 1996 upon which shall be entered the amount of discretionary appropriations.

(Sec. 109) Provides that the amount to be sequestered: (1) for a budget year in which a spin-off law is not in effect shall be the amount (if any) by which the sum of all budget-year entries on the direct spending and receipts scorecard is greater than zero; and (2) if any, shall be increased whenever the average out-year change in direct spending and receipts, combined, achieved during that budget- year session would result in higher deficits than if that average change had equaled the amount targeted for the budget year, with that budget-year target being the amount that the sequestration preview report for the budget year shows was needed to bring the budget-year entries on the direct spending and receipts scorecard to zero. Provides that: (1) within 15 days after the Congress adjourns to end a session and on the same day as a sequestration, if any, under sec. 110 there shall be a sequestration to reduce the amount of receipts in the current policy baseline sum by the sum of the amounts specified in subsection (1) and (2), unless that sum is less than $500 million; and (2) the amount to be sequestered shall be achieved by reducing each non-exempt direct spending account by the uniform percentage necessary to achieve 80 percent of that sum and increasing receipts to achieve the other 20 percent of that sum through tax sequestration surtaxes as enacted under sec. 113 of this Act.

(Sec. 110) Provides for an across-the-board reduction of discretionary programs , if there is a sequestration.

(Sec. 111) Describes and lists programs and activities which shall be exempt from sequestration.

(Sec. 112) Sets forth general and special sequestration rules, including provisions concerning sequestration and: (1) the non-jobs portion of AFDC; (2) the jobs portion of AFDC; (3) the Child Support Enforcement Program; (4) the Commodity Credit Corporation; (5) the Conservation Reserve Program; (6) extended unemployment compensation; (7) the Federal Employees Health Benefits Fund; (8) the Federal Housing Finance Board; (9) Federal pay; (10) Federal insurance programs; (11) Medicaid; (12) Medicare; (13) the Postal Service Fund; (14) power marketing administration funds and the TVA; and (15) veterans' housing loans.

(Sec. 113) Amends the Internal Revenue Code to provide for the imposition of tax sequestration surtaxes on individuals and corporations.

(Sec. 114) Requires both OMB and CBO to prepare both sequestration preview and final reports. Directs the Board of Estimates (established by sec. 119) to choose one of each of the reports as the official report. Directs the President, on the day that the Board chooses the final sequestration report, to issue an order fully implementing without change all required sequestrations and tax actions.

(Sec. 115) Provides for the determination of the current policy baseline and the baseline assuming deficit reduction.

(Sec. 117) Establishes in the Treasury a Stabilization Reserve Fund in order to accumulate balances during years of comparative prosperity, which balances may later be used to cover the loss of receipts and the increase in outlays that occur during times of comparative economic distress.

(Sec. 118) Provides for the suspension of sequestration procedures: (1) upon the declaration of war; and (2) during periods of low economic growth. Sets forth procedures for the consideration of a low growth joint resolution by the Congress.

(Sec. 119) Establishes a Board of Review to report to the President and the Congress concerning the selection of the OMB and CBO sequestration preview and final reports.

(Sec. 120) Provides for expedited judicial review in the United States District Court for the District of Columbia for any Member of Congress or other individual seeking declaratory judgment and injunctive relief with respect to provisions of this Act. Permits review, by the Supreme Court, of any order of such court issued pursuant to provisions of the previous sentence.

Title II: Technical and Conforming Amendments - Sets forth technical and conforming amendments to; (1) the Congressional Budget and Impoundment Act of 1974; (2) the Federal Credit Reform Act of 1990; (3) the Rules of the House of Representatives and the Standing Rules of the Senate; and (4) other Federal law provisions concerning, among other things, the President's budget and the public debt limit.