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104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-159
_______________________________________________________________________


 
        CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 1996

                                _______


                 June 26, 1995.--Ordered to be printed

_______________________________________________________________________


 Mr. Kasich, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                     [To accompany H. Con. Res. 67]
      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the concurrent 
resolution (H. Con. Res. 67), setting forth the congressional 
budget for the United States Government for the fiscal years 
1996, 1997, 1998, 1999, 2000, 2001, and 2002, having met, after 
full and free conference, have agreed to recommend and do 
recommend to their respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:
SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 1996.

    (a) Declaration.--The Congress determines and declares that 
this resolution is the concurrent resolution on the budget for 
fiscal year 1996, including the appropriate budgetary levels 
for fiscal years 1997, 1998, 1999, 2000, as required by section 
301 of the Congressional Budget Act of 1974, and including the 
appropriate levels for fiscal years 2001 and 2002.
    (b) Table of Contents.--The table of contents for this 
concurrent resolution is as follows:

Sec. 1. Concurrent resolution on the budget for fiscal year 1996.

                       TITLE I--LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.
Sec. 102. Debt increase.
Sec. 103. Social Security.
Sec. 104. Major functional categories.
Sec. 105. Reconciliation.

              TITLE II--BUDGETARY RESTRAINTS AND RULEMAKING

Sec. 201. Discretionary spending limits.
Sec. 202. Extension of pay-as-you-go point of order.
Sec. 203. Tax reserve fund in the Senate.
Sec. 204. Welfare reform reserve fund.
Sec. 205. Budget surplus allowance.
Sec. 206. Sale of government assets.
Sec. 207. Credit reform and direct student loans.
Sec. 208. Extension of Budget Act 60-vote enforcement through 2002.
Sec. 209. Repeal of IRS allowance.
Sec. 210. Tax reduction contingent on balanced budget in the House of 
          Representatives.
Sec. 211. Exercise of rulemaking powers.

 TITLE III--SENSE OF THE CONGRESS, HOUSE OF REPRESENTATIVES, AND SENATE

Sec. 301. Sense of the Congress on the elimination of fraud, waste, and 
          abuse in the medicare system.
Sec. 302. Sense of Congress regarding privatization of the student loan 
          marketing association (Sallie Mae).
Sec. 303. Sense of the Congress regarding the debt limit.
Sec. 304. Sense of the Congress assumptions.
Sec. 305. Sense of the Senate that tax reductions should benefit working 
          families.
Sec. 306. Sense of the Senate on the distribution of agriculture 
          savings.
Sec. 307. Sense of the Senate on the establishment of a medicare 
          solvency commission.
Sec. 308. Sense of the Senate regarding protection of children's health.
Sec. 309. Sense of the Senate on the assumptions.
Sec. 310. House Statement on agriculture savings.
Sec. 311. Sense of the House on baselines.
Sec. 312. Sense of the House regarding a commission on the solvency of 
          the Federal military and civil service retirement funds.
Sec. 313. Sense of the House regarding the repeal of House Rule XLIX.
Sec. 314. Sense of the House on emergencies.
                      TITLE I--LEVELS AND AMOUNTS

SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

    The following budgetary levels are appropriate for the 
fiscal years 1996, 1997, 1998, 1999, 2000, 2001, and 2002:
    (1) Federal Revenues.--For purposes of the enforcement of 
this resolution--
            (A) The recommended levels of Federal revenues are 
        as follows:
                    Fiscal year 1996: $1,042,500,000,000.
                    Fiscal year 1997: $1,082,700,000,000.
                    Fiscal year 1998: $1,134,200,000,000.
                    Fiscal year 1999: $1,186,700,000,000.
                    Fiscal year 2000: $1,245,400,000,000.
                    Fiscal year 2001: $1,313,400,000,000.
                    Fiscal year 2002: $1,384,200,000,000.
            (B) The amounts by which the aggregate levels of 
        Federal revenues should be changed are as follows:
                    Fiscal year 1996: $100,000,000.
                    Fiscal year 1997: $100,000,000.
                    Fiscal year 1998: $200,000,000.
                    Fiscal year 1999: $200,000,000.
                    Fiscal year 2000: $200,000,000.
                    Fiscal year 2001: $200,000,000.
                    Fiscal year 2002: $200,000,000.
            (C) The amounts for Federal Insurance Contributions 
        Act revenues for hospital insurance within the 
        recommended levels of Federal revenues are as follows:
                    Fiscal year 1996: $103,800,000,000.
                    Fiscal year 1997: $109,000,000,000.
                    Fiscal year 1998: $114,900,000,000.
                    Fiscal year 1999: $120,700,000,000.
                    Fiscal year 2000: $126,900,000,000.
                    Fiscal year 2001: $133,600,000,000.
                    Fiscal year 2002: $140,400,000,000.
    (2) New Budget Authority.--For purposes of the enforcement 
of this resolution, the appropriate levels of total new budget 
authority are as follows:
                    Fiscal year 1996: $1,285,500,000,000.
                    Fiscal year 1997: $1,324,300,000,000.
                    Fiscal year 1998: $1,362,300,000,000.
                    Fiscal year 1999: $1,396,900,000,000.
                    Fiscal year 2000: $1,445,600,000,000.
                    Fiscal year 2001: $1,476,300,000,000.
                    Fiscal year 2002: $1,518,800,000,000.
    (3) Budget Outlays.--For purposes of the enforcement of 
this resolution, the appropriate levels of total budget outlays 
are as follows:
                    Fiscal year 1996: $1,288,100,000,000.
                    Fiscal year 1997: $1,316,800,000,000.
                    Fiscal year 1998: $1,338,200,000,000.
                    Fiscal year 1999: $1,379,600,000,000.
                    Fiscal year 2000: $1,426,500,000,000.
                    Fiscal year 2001: $1,453,600,000,000.
                    Fiscal year 2002: $1,492,600,000,000.
    (4) Deficits.--For purposes of the enforcement of this 
resolution, the amounts of the deficits are as follows:
                    Fiscal year 1996: $245,600,000,000.
                    Fiscal year 1997: $234,100,000,000.
                    Fiscal year 1998: $204,000,000,000.
                    Fiscal year 1999: $192,900,000,000.
                    Fiscal year 2000: $181,100,000,000.
                    Fiscal year 2001: $140,200,000,000.
                    Fiscal year 2002: $108,400,000,000.
    (5) Public Debt.--The appropriate levels of the public debt 
are as follows:
                    Fiscal year 1996: $5,210,700,000,000.
                    Fiscal year 1997: $5,510,100,000,000.
                    Fiscal year 1998: $5,779,800,000,000.
                    Fiscal year 1999: $6,038,900,000,000.
                    Fiscal year 2000: $6,288,900,000,000.
                    Fiscal year 2001: $6,503,500,000,000.
                    Fiscal year 2002: $6,688,600,000,000.
    (6) Direct Loan Obligations.--The appropriate levels of 
total new direct loan obligations are as follows:
                    Fiscal year 1996: $37,600,000,000.
                    Fiscal year 1997: $40,200,000,000.
                    Fiscal year 1998: $42,300,000,000.
                    Fiscal year 1999: $45,700,000,000.
                    Fiscal year 2000: $45,800,000,000.
                    Fiscal year 2001: $45,800,000,000.
                    Fiscal year 2002: $46,100,000,000.
    (7) Primary Loan Guarantee Commitments.--The appropriate 
levels of new primary loan guarantee commitments are as 
follows:
                    Fiscal year 1996: $193,400,000,000.
                    Fiscal year 1997: $187,900,000,000.
                    Fiscal year 1998: $185,300,000,000.
                    Fiscal year 1999: $183,300,000,000.
                    Fiscal year 2000: $184,700,000,000.
                    Fiscal year 2001: $186,100,000,000.
                    Fiscal year 2002: $187,600,000,000.

SEC. 102. DEBT INCREASE.

    The amounts of the increase in the public debt subject to 
limitation are as follows:
                    Fiscal year 1996: $307,800,000,000.
                    Fiscal year 1997: $299,300,000,000.
                    Fiscal year 1998: $269,800,000,000.
                    Fiscal year 1999: $259,100,000,000.
                    Fiscal year 2000: $249,900,000,000.
                    Fiscal year 2001: $214,600,000,000.
                    Fiscal year 2002: $185,100,000,000.

SEC. 103. SOCIAL SECURITY.

    (a) Social Security Revenues.--For purposes of Senate 
enforcement under sections 302, 602, and 311 of the 
Congressional Budget Act of 1974, the amounts of revenues of 
the Federal Old-Age and Survivors Insurance Trust Fund and the 
Federal Disability Insurance Trust Fund are as follows:
                    Fiscal year 1996: $374,700,000,000.
                    Fiscal year 1997: $392,000,000,000.
                    Fiscal year 1998: $411,400,000,000.
                    Fiscal year 1999: $430,900,000,000.
                    Fiscal year 2000: $452,000,000,000.
                    Fiscal year 2001: $475,200,000,000.
                    Fiscal year 2002: $498,600,000,000.
    (b) Social Security Outlays.--For purposes of Senate 
enforcement under sections 302, 602, and 311 of the 
Congressional Budget Act of 1974, the amounts of outlays of the 
Federal Old-Age and Survivors Insurance Trust Fund and the 
Federal Disability Insurance Trust Fund are as follows:
                    Fiscal year 1996: $299,400,000,000.
                    Fiscal year 1997: $310,900,000,000.
                    Fiscal year 1998: $324,600,000,000.
                    Fiscal year 1999: $338,500,000,000.
                    Fiscal year 2000: $353,100,000,000.
                    Fiscal year 2001: $368,100,000,000.
                    Fiscal year 2002: $383,800,000,000.

SEC. 104. MAJOR FUNCTIONAL CATEGORIES.

    The Congress determines and declares that the appropriate 
levels of new budget authority, budget outlays, new direct loan 
obligations, and new primary loan guarantee commitments for 
fiscal years 1996 through 2002 for each major functional 
category are:
    (1) National Defense (050):
            Fiscal year 1996:
                    (A) New budget authority, $264,700,000,000.
                    (B) Outlays, $263,100,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $1,700,000,000.
            Fiscal year 1997:
                    (A) New budget authority, $267,300,000,000.
                    (B) Outlays, $265,000,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $1,700,000,000.
            Fiscal year 1998:
                    (A) New budget authority, $269,000,000,000.
                    (B) Outlays, $263,800,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $1,700,000,000.
            Fiscal year 1999:
                    (A) New budget authority, $271,700,000,000.
                    (B) Outlays, $267,200,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $1,700,000,000.
            Fiscal year 2000:
                    (A) New budget authority, $274,400,000,000.
                    (B) Outlays, $270,900,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $1,700,000,000.
            Fiscal year 2001:
                    (A) New budget authority, $277,100,000,000.
                    (B) Outlays, $270,000,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $1,700,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $280,000,000,000.
                    (B) Outlays, $270,000,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $1,700,000,000.
    (2) International Affairs (150):
            Fiscal year 1996:
                    (A) New budget authority, $15,800,000,000.
                    (B) Outlays, $17,000,000,000.
                    (C) New direct loan obligations, 
                $5,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $18,300,000,000.
            Fiscal year 1997:
                    (A) New budget authority, $14,000,000,000.
                    (B) Outlays, $15,100,000,000.
                    (C) New direct loan obligations, 
                $5,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $18,300,000,000.
            Fiscal year 1998:
                    (A) New budget authority, $12,400,000,000.
                    (B) Outlays, $13,900,000,000.
                    (C) New direct loan obligations, 
                $5,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $18,300,000,000.
            Fiscal year 1999:
                    (A) New budget authority, $11,200,000,000.
                    (B) Outlays, $12,600,000,000.
                    (C) New direct loan obligations, 
                $5,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $18,300,000,000.
            Fiscal year 2000:
                    (A) New budget authority, $12,700,000,000.
                    (B) Outlays, $11,900,000,000.
                    (C) New direct loan obligations, 
                $5,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $18,300,000,000.
            Fiscal year 2001:
                    (A) New budget authority, $12,800,000,000.
                    (B) Outlays, $12,000,000,000.
                    (C) New direct loan obligations, 
                $5,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $18,300,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $12,800,000,000.
                    (B) Outlays, $11,800,000,000.
                    (C) New direct loan obligations, 
                $5,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $18,300,000,000.
    (3) General Science, Space, and Technology (250):
            Fiscal year 1996:
                    (A) New budget authority, $16,700,000,000.
                    (B) Outlays, $16,800,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1997:
                    (A) New budget authority, $16,300,000,000.
                    (B) Outlays, $16,600,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1998:
                    (A) New budget authority, $15,900,000,000.
                    (B) Outlays, $16,100,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1999:
                    (A) New budget authority, $15,600,000,000.
                    (B) Outlays, $15,700,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2000:
                    (A) New budget authority, $15,300,000,000.
                    (B) Outlays, $15,500,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2001:
                    (A) New budget authority, $15,300,000,000.
                    (B) Outlays, $15,400,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2002:
                    (A) New budget authority, $15,300,000,000.
                    (B) Outlays, $15,400,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
    (4) Energy (270):
            Fiscal year 1996:
                    (A) New budget authority, $4,600,000,000.
                    (B) Outlays, $4,500,000,000.
                    (C) New direct loan obligations, 
                $1,200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1997:
                    (A) New budget authority, $4,200,000,000.
                    (B) Outlays, $3,500,000,000.
                    (C) New direct loan obligations, 
                $1,200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1998:
                    (A) New budget authority, $3,800,000,000.
                    (B) Outlays, $3,100,000,000.
                    (C) New direct loan obligations, 
                $1,200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1999:
                    (A) New budget authority, $3,600,000,000.
                    (B) Outlays, $2,600,000,000.
                    (C) New direct loan obligations, 
                $1,200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2000:
                    (A) New budget authority, $3,400,000,000.
                    (B) Outlays, $2,200,000,000.
                    (C) New direct loan obligations, 
                $1,200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2001:
                    (A) New budget authority, $3,300,000,000.
                    (B) Outlays, $2,200,000,000.
                    (C) New direct loan obligations, 
                $1,200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2002:
                    (A) New budget authority, $3,300,000,000.
                    (B) Outlays, $2,200,000,000.
                    (C) New direct loan obligations, 
                $1,200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
    (5) Natural Resources and Environment (300):
            Fiscal year 1996:
                    (A) New budget authority, $19,500,000,000.
                    (B) Outlays, $20,300,000,000.
                    (C) New direct loan obligations 
                $100,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1997:
                    (A) New budget authority, $19,200,000,000.
                    (B) Outlays, $20,000,000,000.
                    (C) New direct loan obligations, 
                $100,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1998:
                    (A) New budget authority, $17,700,000,000.
                    (B) Outlays, $18,700,000,000.
                    (C) New direct loan obligations, 
                $100,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1999:
                    (A) New budget authority, $18,200,000,000.
                    (B) Outlays, $19,000,000,000.
                    (C) New direct loan obligations, 
                $100,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2000:
                    (A) New budget authority, $17,900,000,000.
                    (B) Outlays, $18,500,000,000.
                    (C) New direct loan obligations, 
                $100,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2001:
                    (A) New budget authority, $17,100,000,000.
                    (B) Outlays, $17,400,000,000.
                    (C) New direct loan obligations, 
                $100,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2002:
                    (A) New budget authority, $17,500,000,000.
                    (B) Outlays, $17,700,000,000.
                    (C) New direct loan obligations, 
                $100,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
    (6) Agriculture (350):
            Fiscal year 1996:
                    (A) New budget authority, $13,100,000,000.
                    (B) Outlays, $11,800,000,000.
                    (C) New direct loan obligations, 
                $11,500,000,000.
                    (D) New primary loan guarantee commitments, 
                $5,700,000,000.
            Fiscal year 1997:
                    (A) New budget authority, $12,500,000,000.
                    (B) Outlays, $11,100,000,000.
                    (C) New direct loan obligations, 
                $11,500,000,000.
                    (D) New primary loan guarantee commitments, 
                $5,700,000,000.
            Fiscal year 1998:
                    (A) New budget authority, $11,700,000,000.
                    (B) Outlays, $10,500,000,000.
                    (C) New direct loan obligations, 
                $10,900,000,000.
                    (D) New primary loan guarantee commitments, 
                $5,700,000,000.
            Fiscal year 1999:
                    (A) New budget authority, $11,500,000,000.
                    (B) Outlays, $10,300,000,000.
                    (C) New direct loan obligations, 
                $11,600,000,000.
                    (D) New primary loan guarantee commitments, 
                $5,700,000,000.
            Fiscal year 2000:
                    (A) New budget authority, $10,900,000,000.
                    (B) Outlays, $9,800,000,000.
                    (C) New direct loan obligations, 
                $11,400,000,000.
                    (D) New primary loan guarantee commitments, 
                $5,700,000,000.
            Fiscal year 2001:
                    (A) New budget authority, $9,800,000,000.
                    (B) Outlays, $8,700,000,000.
                    (C) New direct loan obligations, 
                $11,100,000,000.
                    (D) New primary loan guarantee commitments, 
                $5,700,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $9,600,000,000.
                    (B) Outlays, $8,500,000,000.
                    (C) New direct loan obligations, 
                $10,900,000,000.
                    (D) New primary loan guarantee commitments, 
                $5,700,000,000.
    (7) Commerce and Housing Credit (370):
            Fiscal year 1996:
                    (A) New budget authority, $2,600,000,000.
                    (B) Outlays, -$6,900,000,000.
                    (C) New direct loan obligations, 
                $1,400,000,000.
                    (D) New primary loan guarantee commitments, 
                $123,100,000,000.
            Fiscal year 1997:
                    (A) New budget authority, $1,800,000,000.
                    (B) Outlays, -$5,100,000,000.
                    (C) New direct loan obligations, 
                $1,400,000,000.
                    (D) New primary loan guarantee commitments, 
                $123,100,000,000.
            Fiscal year 1998:
                    (A) New budget authority, $900,000,000.
                    (B) Outlays, -$6,700,000,000.
                    (C) New direct loan obligations, 
                $1,400,000,000.
                    (D) New primary loan guarantee commitments, 
                $123,100,000,000.
            Fiscal year 1999:
                    (A) New budget authority, $400,000,000.
                    (B) Outlays, -$4,800,000,000.
                    (C) New direct loan obligations, 
                $1,400,000,000.
                    (D) New primary loan guarantee commitments, 
                $123,100,000,000.
            Fiscal year 2000:
                    (A) New budget authority, $2,100,000,000.
                    (B) Outlays, -$2,200,000,000.
                    (C) New direct loan obligations, 
                $1,400,000,000.
                    (D) New primary loan guarantee commitments, 
                $123,100,000,000.
            Fiscal year 2001:
                    (A) New budget authority, $800,000,000.
                    (B) Outlays, -$2,900,000,000.
                    (C) New direct loan obligations, 
                $1,400,000,000.
                    (D) New primary loan guarantee commitments, 
                $123,100,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $600,000,000.
                    (B) Outlays, -$3,000,000,000.
                    (C) New direct loan obligations, 
                $1,400,000,000.
                    (D) New primary loan guarantee commitments, 
                $123,100,000,000.
    (8) Transportation (400):
            Fiscal year 1996:
                    (A) New budget authority, $36,600,000,000.
                    (B) Outlays, $38,900,000,000.
                    (C) New direct loan obligations, 
                $200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1997:
                    (A) New budget authority, $43,100,000,000.
                    (B) Outlays, $37,600,000,000.
                    (C) New direct loan obligations, 
                $200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1998:
                    (A) New budget authority, $43,900,000,000.
                    (B) Outlays, $36,600,000,000.
                    (C) New direct loan obligations, 
                $200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1999:
                    (A) New budget authority, $42,600,000,000.
                    (B) Outlays, $34,100,000,000.
                    (C) New direct loan obligations, 
                $200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2000:
                    (A) New budget authority, $42,900,000,000.
                    (B) Outlays, $33,200,000,000.
                    (C) New direct loan obligations, 
                $200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2001:
                    (A) New budget authority, $42,200,000,000.
                    (B) Outlays, $32,400,000,000.
                    (C) New direct loan obligations, 
                $200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2002:
                    (A) New budget authority, $41,800,000,000.
                    (B) Outlays, $32,000,000,000.
                    (C) New direct loan obligations, 
                $200,000,000.
                    (D) New primary loan guarantee commitments, 
                $0.
    (9) Community and Regional Development (450):
            Fiscal year 1996:
                    (A) New budget authority, $6,600,000,000.
                    (B) Outlays, $9,900,000,000.
                    (C) New direct loan obligations, 
                $2,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $1,200,000,000.
            Fiscal year 1997:
                    (A) New budget authority, $6,500,000,000.
                    (B) Outlays, $7,800,000,000.
                    (C) New direct loan obligations, 
                $2,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $1,200,000,000.
            Fiscal year 1998:
                    (A) New budget authority, $6,400,000,000.
                    (B) Outlays, $6,500,000,000.
                    (C) New direct loan obligations, 
                $2,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $1,200,000,000.
            Fiscal year 1999:
                    (A) New budget authority, $6,400,000,000.
                    (B) Outlays, $6,200,000,000.
                    (C) New direct loan obligations, 
                $2,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $1,200,000,000.
            Fiscal year 2000:
                    (A) New budget authority, $6,300,000,000.
                    (B) Outlays, $6,200,000,000.
                    (C) New direct loan obligations, 
                $2,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $1,200,000,000.
            Fiscal year 2001:
                    (A) New budget authority, $5,700,000,000.
                    (B) Outlays, $6,100,000,000.
                    (C) New direct loan obligations, 
                $2,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $1,200,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $5,600,000,000.
                    (B) Outlays, $6,100,000,000.
                    (C) New direct loan obligations, 
                $2,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $1,200,000,000.
    (10) Education, Training, Employment, and Social Services 
(500):
            Fiscal year 1996:
                    (A) New budget authority, $48,400,000,000.
                    (B) Outlays, $53,400,000,000.
                    (C) New direct loan obligations, 
                $13,600,000,000.
                    (D) New primary loan guarantee commitments, 
                $16,300,000,000.
            Fiscal year 1997:
                    (A) New budget authority, $47,800,000,000.
                    (B) Outlays, $48,900,000,000.
                    (C) New direct loan obligations, 
                $16,300,000,000.
                    (D) New primary loan guarantee commitments, 
                $15,900,000,000.
            Fiscal year 1998:
                    (A) New budget authority, $47,600,000,000.
                    (B) Outlays, $47,300,000,000.
                    (C) New direct loan obligations, 
                $19,100,000,000.
                    (D) New primary loan guarantee commitments, 
                $15,200,000,000.
            Fiscal year 1999:
                    (A) New budget authority, $48,400,000,000.
                    (B) Outlays, $47,500,000,000.
                    (C) New direct loan obligations, 
                $21,800,000,000.
                    (D) New primary loan guarantee commitments, 
                $14,300,000,000.
            Fiscal year 2000:
                    (A) New budget authority, $49,100,000,000.
                    (B) Outlays, $48,200,000,000.
                    (C) New direct loan obligations, 
                $21,900,000,000.
                    (D) New primary loan guarantee commitments, 
                $15,000,000,000.
            Fiscal year 2001:
                    (A) New budget authority, $48,600,000,000.
                    (B) Outlays, $47,700,000,000.
                    (C) New direct loan obligations, 
                $22,000,000,000.
                    (D) New primary loan guarantee commitments, 
                $15,800,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $48,800,000,000.
                    (B) Outlays, $47,800,000,000.
                    (C) New direct loan obligations, 
                $22,200,000,000.
                    (D) New primary loan guarantee commitments, 
                $16,600,000,000.
    (11) Health (550):
            Fiscal year 1996:
                    (A) New budget authority, $121,000,000,000.
                    (B) Outlays, $121,100,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $300,000,000.
            Fiscal year 1997:
                    (A) New budget authority, $127,600,000,000.
                    (B) Outlays, $127,500,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $300,000,000.
            Fiscal year 1998:
                    (A) New budget authority, $131,600,000,000.
                    (B) Outlays, $131,700,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $300,000,000.
            Fiscal year 1999:
                    (A) New budget authority, $135,700,000,000.
                    (B) Outlays, $135,700,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $300,000,000.
            Fiscal year 2000:
                    (A) New budget authority, $140,100,000,000.
                    (B) Outlays, $139,900,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $300,000,000.
            Fiscal year 2001:
                    (A) New budget authority, $144,500,000,000.
                    (B) Outlays, $144,300,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $300,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $149,200,000,000.
                    (B) Outlays, $149,000,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $300,000,000.
    (12) Medicare (570):
            Fiscal year 1996:
                    (A) New budget authority, $176,100,000,000.
                    (B) Outlays, $173,700,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1997:
                    (A) New budget authority, $184,300,000,000.
                    (B) Outlays, $182,800,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1998:
                    (A) New budget authority, $194,000,000,000.
                    (B) Outlays, $192,300,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1999:
                    (A) New budget authority, $205,700,000,000.
                    (B) Outlays, $203,200,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2000:
                    (A) New budget authority, $216,500,000,000.
                    (B) Outlays, $214,600,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2001:
                    (A) New budget authority, $231,800,000,000.
                    (B) Outlays, $229,700,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2002:
                    (A) New budget authority, $249,200,000,000.
                    (B) Outlays, $247,000,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
    (13) Income Security (600):
            Fiscal year 1996:
                    (A) New budget authority, $225,900,000,000.
                    (B) Outlays, $227,600,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $100,000,000.
            Fiscal year 1997:
                    (A) New budget authority, $231,600,000,000.
                    (B) Outlays, $236,400,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $100,000,000.
            Fiscal year 1998:
                    (A) New budget authority, $250,300,000,000.
                    (B) Outlays, $245,300,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $100,000,000.
            Fiscal year 1999:
                    (A) New budget authority, $253,100,000,000.
                    (B) Outlays, $255,800,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $100,000,000.
            Fiscal year 2000:
                    (A) New budget authority, $269,500,000,000.
                    (B) Outlays, $269,900,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $100,000,000.
            Fiscal year 2001:
                    (A) New budget authority, $274,800,000,000.
                    (B) Outlays, $274,600,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $100,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $288,700,000,000.
                    (B) Outlays, $288,300,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $100,000,000.
    (14) Social Security (650):
            Fiscal year 1996:
                    (A) New budget authority, $5,900,000,000.
                    (B) Outlays, $8,500,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1997:
                    (A) New budget authority, $8,100,000,000.
                    (B) Outlays, $10,500,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1998:
                    (A) New budget authority, $8,800,000,000.
                    (B) Outlays, $11,300,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1999:
                    (A) New budget authority, $9,600,000,000.
                    (B) Outlays, $12,100,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2000:
                    (A) New budget authority, $10,500,000,000.
                    (B) Outlays, $12,900,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2001:
                    (A) New budget authority, $11,100,000,000.
                    (B) Outlays, $13,500,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2002:
                    (A) New budget authority, $11,700,000,000.
                    (B) Outlays, $14,100,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
    (15) Veterans Benefits and Services (700):
            Fiscal year 1996:
                    (A) New budget authority, $37,500,000,000.
                    (B) Outlays, $36,900,000,000.
                    (C) New direct loan obligations, 
                $1,200,000,000.
                    (D) New primary loan guarantee commitments, 
                $26,700,000,000.
            Fiscal year 1997:
                    (A) New budget authority, $37,900,000,000.
                    (B) Outlays, $38,000,000,000.
                    (C) New direct loan obligations, 
                $1,100,000,000.
                    (D) New primary loan guarantee commitments, 
                $21,600,000,000.
            Fiscal year 1998:
                    (A) New budget authority, $38,200,000,000.
                    (B) Outlays, $38,400,000,000.
                    (C) New direct loan obligations, 
                $1,000,000,000.
                    (D) New primary loan guarantee commitments, 
                $19,700,000,000.
            Fiscal year 1999:
                    (A) New budget authority, $38,800,000,000.
                    (B) Outlays, $39,000,000,000.
                    (C) New direct loan obligations, 
                $1,000,000,000.
                    (D) New primary loan guarantee commitments, 
                $18,600,000,000.
            Fiscal year 2000:
                    (A) New budget authority, $39,100,000,000.
                    (B) Outlays, $40,600,000,000.
                    (C) New direct loan obligations, 
                $1,200,000,000.
                    (D) New primary loan guarantee commitments, 
                $19,300,000,000.
            Fiscal year 2001:
                    (A) New budget authority, $39,700,000,000.
                    (B) Outlays, $41,300,000,000.
                    (C) New direct loan obligations, 
                $1,400,000,000.
                    (D) New primary loan guarantee commitments, 
                $19,900,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $40,200,000,000.
                    (B) Outlays, $41,800,000,000.
                    (C) New direct loan obligations, 
                $1,700,000,000.
                    (D) New primary loan guarantee commitments, 
                $20,600,000,000.
    (16) Administration of Justice (750):
            Fiscal year 1996:
                    (A) New budget authority, $19,800,000,000.
                    (B) Outlays, $18,700,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1997:
                    (A) New budget authority, $19,800,000,000.
                    (B) Outlays, $18,900,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1998:
                    (A) New budget authority, $20,200,000,000.
                    (B) Outlays, $19,700,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
        Fiscal year 1999:
                    (A) New budget authority, $21,000,000,000.
                    (B) Outlays, $20,400,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
        Fiscal year 2000:
                    (A) New budget authority, $21,100,000,000.
                    (B) Outlays, $20,900,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2001:
                    (A) New budget authority, $20,700,000,000.
                    (B) Outlays, $20,500,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2002:
                    (A) New budget authority, $20,600,000,000.
                    (B) Outlays, $20,500,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
    (17) General Government (800):
            Fiscal year 1996:
                    (A) New budget authority, $12,400,000,000.
                    (B) Outlays, $12,900,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1997:
                    (A) New budget authority, $12,300,000,000.
                    (B) Outlays, $12,300,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1998:
                    (A) New budget authority, $12,200,000,000.
                    (B) Outlays, $12,200,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1999:
                    (A) New budget authority, $12,100,000,000.
                    (B) Outlays, $12,000,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2000:
                    (A) New budget authority, $12,000,000,000.
                    (B) Outlays, $12,000,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2001:
                    (A) New budget authority, $11,600,000,000.
                    (B) Outlays, $11,600,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2002:
                    (A) New budget authority, $11,600,000,000.
                    (B) Outlays, $11,500,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
    (18) Net Interest (900):
            Fiscal year 1996:
                    (A) New budget authority, $298,400,000,000.
                    (B) Outlays, $298,400,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1997:
                    (A) New budget authority, $310,500,000,000.
                    (B) Outlays, $310,500,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1998:
                    (A) New budget authority, $319,400,000,000.
                    (B) Outlays, $319,400,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1999:
                    (A) New budget authority, $331,500,000,000.
                    (B) Outlays, $331,500,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2000:
                    (A) New budget authority, $342,900,000,000.
                    (B) Outlays, $342,900,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2001:
                    (A) New budget authority, $349,900,000,000.
                    (B) Outlays, $349,900,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2002:
                    (A) New budget authority, $357,600,000,000.
                    (B) Outlays, $357,600,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
    (19) The corresponding levels of gross interest on the 
public debt are as follows:
            Fiscal year 1996: $369,900,000,000.
            Fiscal year 1997: $381,600,000,000.
            Fiscal year 1998: $390,900,000,000.
            Fiscal year 1999: $404,000,000,000.
            Fiscal year 2000: $416,100,000,000.
            Fiscal year 2001: $426,800,000,000.
            Fiscal year 2002: $436,100,000,000.
    (20) Allowances (920):
            Fiscal year 1996:
                    (A) New budget authority, -$6,400,000,000.
                    (B) Outlays, -$4,800,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1997:
                    (A) New budget authority, -$6,300,000,000.
                    (B) Outlays, -$6,400,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1998:
                    (A) New budget authority, -$5,300,000,000.
                    (B) Outlays, -$5,500,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1999:
                    (A) New budget authority, -$4,700,000,000.
                    (B) Outlays, -$5,000,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2000:
                    (A) New budget authority, -$3,700,000,000.
                    (B) Outlays, -$4,000,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2001:
                    (A) New budget authority, -$3,700,000,000.
                    (B) Outlays, -$4,000,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2002:
                    (A) New budget authority, -$3,700,000,000.
                    (B) Outlays, -$4,100,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
    (21) Undistributed Offsetting Receipts (950):
            Fiscal year 1996:
                    (A) New budget authority, -$33,700,000,000.
                    (B) Outlays, -$33,700,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1997:
                    (A) New budget authority, -$34,200,000,000.
                    (B) Outlays, -$34,200,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1998:
                    (A) New budget authority, -$36,400,000,000.
                    (B) Outlays, -$36,400,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 1999:
                    (A) New budget authority, -$35,500,000,000.
                    (B) Outlays, -$35,500,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2000:
                    (A) New budget authority, -$37,400,000,000.
                    (B) Outlays, -$37,400,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2001:
                    (A) New budget authority, -$36,800,000,000.
                    (B) Outlays, -$36,800,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.
            Fiscal year 2002:
                    (A) New budget authority, -$41,600,000,000.
                    (B) Outlays, -$41,600,000,000.
                    (C) New direct loan obligations, $0.
                    (D) New primary loan guarantee commitments, 
                $0.

SEC. 105. RECONCILIATION.

    (a) Reconciliation of Spending Reductions.--
            (1) Senate committees.--Not later than September 
        22, 1995, the committees named in this subsection shall 
        submit their recommendations to the Committee on the 
        Budget of the Senate. After receiving those 
        recommendations, the Committee on the Budget shall 
        report to the Senate a reconciliation bill carrying out 
        all such recommendations without any substantive 
        revision.
                    (A) Committee on agriculture, nutrition, 
                and forestry.--The Senate Committee on 
                Agriculture, Nutrition, and Forestry shall 
                report changes in laws within its jurisdiction 
                that provide direct spending (as defined in 
                section 250(c)(8) of the Balanced Budget and 
                Emergency Deficit Control Act of 1985) to 
                reduce outlays $2,503,000,000 in fiscal year 
                1996, $29,059,000,000 for the period of fiscal 
                years 1996 through 2000, and $48,402,000,000 
                for the period of fiscal years 1996 through 
                2002.
                    (B) Committee on armed services.--The 
                Senate Committee on Armed Services shall report 
                changes in laws within its jurisdiction that 
                provide direct spending to reduce outlays 
                $1,571,000,000 in fiscal year 1996, 
                $1,888,000,000 for the period of fiscal years 
                1996 through 2000, and $2,199,000,000 for the 
                period of fiscal years 1996 through 2002.
                    (C) Committee on banking, housing, and 
                urban affairs.--The Senate Committee on 
                Banking, Housing, and Urban Affairs shall 
                report changes in laws within its jurisdiction 
                that provide direct spending to reduce outlays 
                $481,000,000 in fiscal year 1996, 
                $1,698,000,000 for the period of fiscal years 
                1996 through 2000, and $2,391,000,000 for the 
                period of fiscal years 1996 through 2002.
                    (D) Committee on commerce, science, and 
                transportation.--The Senate Committee on 
                Commerce, Science, and Transportation shall 
                report changes in laws within its jurisdiction 
                that provide direct spending to reduce outlays 
                $114,000,000 in fiscal year 1996, 
                $9,088,000,000 for the period of fiscal years 
                1996 through 2000, and $15,036,000,000 for the 
                period of fiscal years 1996 through 2002.
                    (E) Committee on energy and natural 
                resources.--The Senate Committee on Energy and 
                Natural Resources shall report changes in laws 
                within its jurisdiction that provide direct 
                spending to reduce outlays $354,000,000 in 
                fiscal year 1996, $4,292,000,000 for the period 
                of fiscal years 1996 through 2000, and 
                $4,001,000,000 for the period of fiscal years 
                1996 through 2002.
                    (F) Committee on environment and public 
                works.--The Senate Committee on Environment and 
                Public Works shall report changes in laws 
                within its jurisdiction that provide direct 
                spending to reduce outlays $118,000,000 in 
                fiscal year 1996, $1,308,000,000 for the period 
                of fiscal years 1996 through 2000, and 
                $2,250,000,000 for the period of fiscal years 
                1996 through 2002.
                    (G) Committee on finance.--(i) The Senate 
                Committee on Finance shall report changes in 
                laws within its jurisdiction that provide 
                direct spending to reduce outlays 
                $15,328,000,000 in fiscal year 1996, 
                $272,974,000,000 for the period of fiscal years 
                1996 through 2000, and $530,359,000,000 for the 
                period of fiscal years 1996 through 2002.
                    (ii) The Senate Committee on Finance shall 
                report changes in laws to increase the 
                statutory limit on the public debt to not more 
                than $5,500,000,000,000.
                    (H) Committee on governmental affairs.--The 
                Senate Committee on Governmental Affairs shall 
                report changes in laws within its jurisdiction 
                to reduce the deficit $524,000,000 in fiscal 
                year 1996, $5,357,000,000 for the period of 
                fiscal years 1996 through 2000, and 
                $9,844,000,000 for the period of fiscal years 
                1996 through 2002.
                    (I) Committee on the judiciary.--The Senate 
                Committee on the Judiciary shall report changes 
                in laws within its jurisdiction that provide 
                direct spending to reduce outlays $0 in fiscal 
                year 1996, $238,000,000 for the period of 
                fiscal years 1996 through 2000, and 
                $476,000,000 for the period of fiscal years 
                1996 through 2002.
                    (J) Committee on labor and human 
                resources.--The Senate Committee on Labor and 
                Human Resources shall report changes in laws 
                within its jurisdiction that provide direct 
                spending to reduce outlays $809,000,000 in 
                fiscal year 1996, $6,956,000,000 for the period 
                of fiscal years 1996 through 2000, and 
                $10,779,000,000 for the period of fiscal years 
                1996 through 2002.
                    (K) Committee on veterans' affairs.--The 
                Senate Committee on Veterans' Affairs shall 
                report changes in laws within its jurisdiction 
                that provide direct spending to reduce outlays 
                $274,000,000 in fiscal year 1996, 
                $3,614,000,000 for the period of fiscal years 
                1996 through 2000, and $6,392,000,000 for the 
                period of fiscal years 1996 through 2002.
            (2)  House committees.--
                    (A) General rules.--(i) Not later than 
                September 22, 1995, the House committees named 
                in clauses (i) through (xii) of subparagraph 
                (B) shall submit their recommendations to the 
                House Committee on the Budget. After receiving 
                those recommendations, the House Committee on 
                the Budget shall report to the House a 
                reconciliation bill carrying out all such 
                recommendations without any substantive 
                revision.
                    (ii) Each committee named in clauses (i) 
                through (xi) of subparagraph (B) shall report 
                changes in laws within its jurisdiction that 
                provide direct spending such that the total 
                level of direct spending for that committee 
                for--
                            (I) fiscal year 1996,
                            (II) the 5-year period beginning 
                        with fiscal year 1996 and ending with 
                        fiscal year 2000, and
                            (III) the 7-year period beginning 
                        with fiscal year 1996 and ending with 
                        fiscal year 2002,
                does not exceed the total level of direct 
                spending in that period in the clause 
                applicable to that committee.
                    (iii) Each committee named in clauses 
                (i)(II), (iv)(II), (v)(II), and (vi)(II) of 
                subparagraph (B) shall report changes in laws 
                within its jurisdiction as set forth in the 
                clause applicable to that committee.
                    (iv) The Committee on Ways and Means shall 
                carry out subparagraph (B)(xii).
                    (B) Committee amounts.--(i)(I) The House 
                Committee on Agriculture: $10,506,000,000 in 
                outlays in fiscal year 1996, $44,741,000,000 in 
                outlays in fiscal years 1996 through 2000, and 
                $59,232,000,000 in outlays in fiscal years 1996 
                through 2002.
                    (II) In addition to the changes in law 
                reported pursuant to subclause (I), the House 
                Committee on Agriculture shall report changes 
                in laws within its jurisdiction that provide 
                direct spending (other than that defined within 
                subparagraph (A) or (B) of section 250(c)(8) of 
                the Balanced Budget and Emergency Deficit 
                Control Act of 1985) such that the total level 
                of direct spending (as so defined) for that 
                committee does not exceed: $26,748,000,000 in 
                outlays in fiscal year 1996, $133,246,000,000 
                in outlays in fiscal years 1996 through 2000, 
                and $192,270,000,000 in outlays in fiscal years 
                1996 through 2002.
                    (ii) The House Committee on Banking and 
                Financial Services: -$13,087,000,000 in outlays 
                in fiscal year 1996, -$50,061,000,000 in 
                outlays in fiscal years 1996 through 2000, and 
                -$65,112,000,000 in outlays in fiscal years 
                1996 through 2002.
                    (iii) The House Committee on Commerce: 
                $285,537,000,000 in outlays in fiscal year 
                1996, $1,592,240,000,000 in outlays in fiscal 
                years 1996 through 2000, and $2,361,708,000,000 
                in outlays in fiscal years 1996 through 2002.
                    (iv)(I) The House Committee on Economic and 
                Educational Opportunities: $16,026,000,000 in 
                outlays in fiscal year 1996, $77,346,000,000 in 
                outlays in fiscal years 1996 through 2000, and 
                $110,936,000,000 in outlays in fiscal years 
                1996 through 2002.
                    (II) In addition to changes in law reported 
                pursuant to subclause (I), the House Committee 
                on Economic and Educational Opportunities shall 
                report program changes in laws within its 
                jurisdiction that would result in a reduction 
                in outlays as follows: -$720,000,000 in fiscal 
                year 1996, -$5,810,000,000 in fiscal years 1996 
                through 2000, and -$8,770,000,000 in fiscal 
                years 1996 through 2002.
                    (v)(I) The House Committee on Government 
                Reform and Oversight: $57,743,000,000 in 
                outlays in fiscal year 1996, $310,364,000,000 
                in outlays in fiscal years 1996 through 2000, 
                and $449,583,000,000 in outlays in fiscal years 
                1996 through 2002.
                    (II) In addition to changes in law reported 
                pursuant to subclause (I), the House Committee 
                on Government Reform and Oversight shall report 
                changes in laws within its jurisdiction that 
                would reduce the deficit by: $85,000,000 in 
                fiscal year 1996, $775,000,000 in fiscal years 
                1996 through 2000, and $1,127,000,000 in fiscal 
                years 1996 through 2002.
                    (vi)(I) The House Committee on 
                International Relations: $14,243,000,000 in 
                outlays in fiscal year 1996, $62,072,000,000 in 
                outlays in fiscal years 1996 through 2000, and 
                $83,221,000,000 in outlays in fiscal years 1996 
                through 2002.
                    (II) In addition to changes in law reported 
                pursuant to subclause (I), the House Committee 
                on International Relations shall report changes 
                in laws within its jurisdiction that would 
                reduce the deficit by: $1,000,000 in fiscal 
                year 1996, $14,000,000 in fiscal years 1996 
                through 2000, and $22,000,000 in fiscal years 
                1996 through 2002.
                    (vii) The House Committee on the Judiciary: 
                $2,580,000,000 in outlays in fiscal year 1996, 
                $13,734,000,000 in outlays in fiscal years 1996 
                through 2000, and $19,530,000,000 in outlays in 
                fiscal years 1996 through 2002.
                    (viii) The House Committee on National 
                Security: $39,601,000,000 in outlays in fiscal 
                year 1996, $226,931,000,000 in outlays in 
                fiscal years 1996 through 2000, and 
                $331,210,000,000 in outlays in fiscal years 
                1996 through 2002.
                    (ix) The House Committee on Resources: 
                $1,535,000,000 in outlays in fiscal year 1996, 
                $7,816,000,000 in outlays in fiscal years 1996 
                through 2000, and $12,871,000,000 in outlays in 
                fiscal years 1996 through 2002.
                    (x) The House Committee on Transportation 
                and Infrastructure: $16,615,000,000 in outlays 
                in fiscal year 1996, $83,070,000,000 in outlays 
                in fiscal years 1996 through 2000, and 
                $116,811,000,000 in outlays in fiscal years 
                1996 through 2002.
                    (xi) The House Committee on Veterans' 
                Affairs: $19,041,000,000 in outlays in fiscal 
                year 1996, $106,163,000,000 in outlays in 
                fiscal years 1996 through 2000, and 
                $154,864,000,000 in outlays in fiscal years 
                1996 through 2002.
                    (xii)(I) The House Committee on Ways and 
                Means shall report changes in laws within its 
                jurisdiction that provide direct spending such 
                that the total level of direct spending for 
                that committee for--
                            (aa) fiscal year 1996,
                            (bb) the 5-year period beginning 
                        with fiscal year 1996 and ending with 
                        fiscal year 2000, and
                            (cc) the 7-year period beginning 
                        with fiscal year 1996 and ending with 
                        fiscal year 2002,
                does not exceed the following level in that 
                period: $349,172,000,000 in outlays in fiscal 
                year 1996, $2,010,751,000,000 in outlays in 
                fiscal years 1996 through 2000, and 
                $3,002,706,000,000 in outlays in fiscal years 
                1996 through 2002.
                    (II) The House Committee on Ways and Means 
                shall report changes in laws within its 
                jurisdiction such that the total level of 
                revenues for that committee for fiscal year 
                2000 is not less than $1,304,215,000,000 and 
                for fiscal years 1996 through 2002 is not less 
                than $17,938,254,000,000.
                    (III) The House Committee on Ways and Means 
                shall report changes in laws to increase the 
                statutory limit on the public debt to not more 
                than $5,500,000,000,000.
                    (C) Definition.--For purposes of this 
                paragraph, the term ``direct spending'' has the 
                meaning given to such term in section 250(c)(8) 
                of the Balanced Budget and Emergency Deficit 
                Control Act of 1985.
    (b) Reconciliation of Revenue Reductions in the Senate.--
            (1) Certification.--In the Senate, upon the 
        certification pursuant to section 205(a) of this 
        resolution, the Senate Committee on Finance shall 
        submit its recommendations pursuant to paragraph (2) to 
        the Senate Committee on the Budget. After receiving 
        those recommendations, the Committee on the Budget 
        shall add these recommendations to the recommendations 
        submitted pursuant to subsection (a) and report a 
        reconciliation bill carrying out all such 
        recommendations without any substantive revision.
            (2) Committee on finance.--Not later than five days 
        after the certification made pursuant to section 
        205(a), the Senate Committee on Finance shall report 
        changes in laws within its jurisdiction necessary to 
        reduce revenues by not more than $50,000,000,000 in 
        fiscal year 2002 and $245,000,000,000 for the period of 
        fiscal years 1996 through 2002.

             TITLE II--BUDGETARY RESTRAINTS AND RULEMAKING

SEC. 201. DISCRETIONARY SPENDING LIMITS.

    (a) Definition.--As used in this section and for the 
purposes of allocations made pursuant to section 302(a) or 
602(a) of the Congressional Budget Act of 1974, for the 
discretionary category, the term ``discretionary spending 
limit'' means--
            (1) with respect to fiscal year 1996--
                    (A) for the defense category 
                $265,406,000,000 in new budget authority and 
                $264,043,000,000 in outlays; and
                    (B) for the nondefense category 
                $219,668,000,000 in new budget authority and 
                $267,725,000,000 in outlays;
            (2) with respect to fiscal year 1997--
                    (A) for the defense category 
                $267,962,000,000 in new budget authority and 
                $265,734,000,000 in outlays; and
                    (B) for the nondefense category 
                $214,468,000,000 in new budget authority and 
                $254,561,000,000 in outlays;
            (3) with respect to fiscal year 1998--
                    (A) for the defense category 
                $269,731,000,000 in new budget authority and 
                $264,531,000,000 in outlays; and
                    (B) for the nondefense category 
                $220,961,000,000 in new budget authority and 
                $248,101,000,000 in outlays;
            (4) with respect to fiscal year 1999, for the 
        discretionary category $482,207,000,000 in new budget 
        authority and $510,482,000,000 in outlays;
            (5) with respect to fiscal year 2000, for the 
        discretionary category $489,379,000,000 in new budget 
        authority and $514,234,000,000 in outlays;
            (6) with respect to fiscal year 2001, for the 
        discretionary category $496,601,000,000 in new budget 
        authority and $516,403,000,000 in outlays; and
            (7) with respect to fiscal year 2002, for the 
        discretionary category $498,837,000,000 in new budget 
        authority and $515,075,000,000 in outlays;
as adjusted for changes in concepts and definitions and 
emergency appropriations.
    (b) Point of Order in the Senate.--
            (1) In general.--Except as provided in paragraph 
        (2), it shall not be in order in the Senate to 
        consider--
                    (A) any concurrent resolution on the budget 
                for fiscal year 1996, 1997, or 1998 (or 
                amendment, motion, or conference report on such 
                a resolution) that provides discretionary 
                spending in excess of the sum of the defense 
                and nondefense discretionary spending limits 
                for such fiscal year;
                    (B) any concurrent resolution on the budget 
                for fiscal years 1999, 2000, 2001, or 2002 (or 
                amendment, motion, or conference report on such 
                a resolution) that provides discretionary 
                spending in excess of the discretionary 
                spending limit for such fiscal year; or
                    (C) any appropriations bill or resolution 
                (or amendment, motion, or conference report on 
                such appropriations bill or resolution) for 
                fiscal year 1995, 1996, 1997, 1998, 1999, 2000, 
                2001, or 2002 that would exceed any of the 
                discretionary spending limits in this section 
                or suballocations of those limits made pursuant 
                to section 602(b) of the Congressional Budget 
                Act of 1974.
            (2) Exception.--
                    (A) In general.--This section shall not 
                apply if a declaration of war by the Congress 
                is in effect or if a joint resolution pursuant 
                to section 258 of the Balanced Budget and 
                Emergency Deficit Control Act of 1985 has been 
                enacted.
                    (B) Enforcement of discretionary limits.--
                Paragraph (1)(A) and the application of 
                paragraph (1)(B) to fiscal years 1997 through 
                2002 shall not take effect until the enactment 
                of a reconciliation bill pursuant to section 
                105 of this resolution.
    (c) Waiver.--This section may be waived or suspended in the 
Senate only by the affirmative vote of three-fifths of the 
Members, duly chosen and sworn.
    (d) Appeals.--Appeals in the Senate from the decisions of 
the Chair relating to any provision of this section shall be 
limited to 1 hour, to be equally divided between, and 
controlled by, the appellant and the manager of the concurrent 
resolution, bill, or joint resolution, as the case may be. An 
affirmative vote of three-fifths of the Members of the Senate, 
duly chosen and sworn, shall be required in the Senate to 
sustain an appeal of the ruling of the Chair on a point of 
order raised under this section.
    (e) Determination of Budget Levels.--For purposes of this 
section, the levels of new budget authority, outlays, new 
entitlement authority, and revenues for a fiscal year shall be 
determined on the basis of estimates made by the Committee on 
the Budget of the Senate.

SEC. 202. EXTENSION OF PAY-AS-YOU-GO POINT OF ORDER.

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

SEC. 203. TAX RESERVE FUND IN THE SENATE.

    (a) In General.--In the Senate, on or after October 1, 
1995, revenue and spending aggregates shall be reduced and 
allocations may be revised for legislation that reduces 
revenues within a committee's jurisdiction if such a committee 
or the committee of conference on such legislation reports such 
legislation, if, to the extent that the costs of such 
legislation are not included in this concurrent resolution on 
the budget, the enactment of such legislation will not increase 
the deficit in this resolution for--
            (1) fiscal year 1996;
            (2) the period of fiscal years 1996 through 2000; 
        or
            (3) the period of fiscal years 2001 through 2005.
    (b) Revised Allocations.--Upon the reporting of legislation 
pursuant to subsection (a), and again upon the submission of a 
conference report on such legislation (if a conference report 
is submitted), the Chairman of the Committee on the Budget of 
the Senate may file with the Senate appropriately revised 
allocations under sections 302(a) and 602(a) of the 
Congressional Budget Act of 1974 and revised functional levels 
and aggregates to carry out this section. These revised 
allocations, functional levels, and aggregates shall be 
considered for the purposes of the Congressional Budget Act of 
1974 as allocations, functional levels, and aggregates 
contained in this concurrent resolution on the budget.
    (c) Reporting Revised Allocations.--The appropriate 
committee shall report appropriately revised allocations 
pursuant to sections 302(b) and 602(b) of the Congressional 
Budget Act of 1974 to carry out this section.

SEC. 204. WELFARE REFORM RESERVE FUND.

    (a) In General.--
            (1) Direct spending.--In the Senate and the House 
        of Representatives, budget authority and outlays, and 
        (in the House) entitlement authority, allocated to a 
        committee may be revised, pursuant to subsection 
        (b)(1), for legislation in that committee's 
        jurisdiction that has the effect of reducing direct 
        spending for a welfare program and authorizes an 
        increase in discretionary spending for that welfare 
        program, if that committee reports such legislation.
            (2) Discretionary spending.--In the Senate and the 
        House of Representatives, budget authority and outlays 
        allocated to the Committee on Appropriations, and (in 
        the Senate) the discretionary spending limits in 
        section 201 of this resolution, may be increased, 
        pursuant to subsection (b)(2), for an appropriation 
        measure that provides new discretionary budget 
        authority for a welfare program pursuant to authority 
        provided in legislation described in paragraph (1), if 
        the Committee on Appropriations reports such an 
        appropriation measure.
    (b) Revised Allocations.--
            (1) Direct spending.--Upon reporting of legislation 
        pursuant to subsection (a)(1) and again upon submission 
        of a conference report on such legislation, the 
        chairman of the Committee on the Budget of the House or 
        Senate (whichever is appropriate) may submit to that 
        House revised allocations under sections 302(a) and 
        602(a) of the Congressional Budget Act of 1974 to carry 
        out this section. Such revised allocations shall be 
        considered for the purposes of the Congressional Budget 
        Act of 1974 to be the allocations under this concurrent 
        budget resolution. In the Senate, the revision shall 
        reflect that amount of the direct spending savings 
        estimated to result from such legislation to the extent 
        they exceed the savings assumed in this concurrent 
        resolution on the budget.
            (2) Discretionary spending.--Upon reporting of 
        legislation pursuant to subsection (a)(2) and again 
        upon the submission of a conference report on such 
        legislation, the chairman of the Committee on the 
        Budget of the House or Senate (whichever is 
        appropriate) may submit to that House revised 
        allocations under sections 302(a) and 602(a) of the 
        Congressional Budget Act of 1974 and revised 
        discretionary spending limits. The revision shall 
        reflect that amount of the new discretionary budget 
        authority provided for the welfare program up to the 
        level authorized in the legislation reported pursuant 
        to subsection (a)(1), except that the budget authority 
        and outlay revisions shall not exceed the adjustments 
        made pursuant to paragraph (1) for that welfare 
        program. Such revised allocations and discretionary 
        spending limits shall be considered, for the purposes 
        of the Congressional Budget Act of 1974, to be the 
        allocations and spending limits under this concurrent 
        resolution on the budget.
    (c) Committee on Appropriations.--The Committees on 
Appropriations may report appropriately revised suballocations 
pursuant to sections 302(b)(1) and 602(b)(1) of the 
Congressional Budget Act of 1974 following the revision of the 
allocations pursuant to subsection (b)(2), to carry out this 
section.

SEC. 205. BUDGET SURPLUS ALLOWANCE.

    (a) CBO Certification of Legislative Submissions.--
            (1) Submission of legislation.--Upon the submission 
        of legislative recommendations pursuant to section 
        105(a) and prior to the submission of a conference 
        report on legislation reported pursuant to section 105, 
        the chairman of the Committee on the Budget of the 
        Senate and the House of Representatives (as the case 
        may be) shall submit such recommendations to the 
        Congressional Budget Office.
            (2) Basis of estimates.--For the purposes of 
        preparing an estimate pursuant to this subsection, the 
        Congressional Budget Office shall include the budgetary 
        impact of all legislation enacted to date, use the 
        economic and technical assumptions underlying this 
        resolution, and assume compliance with the total 
        discretionary spending levels assumed in this 
        resolution unless superseded by law.
            (3) Estimate of legislation.--The Congressional 
        Budget Office shall provide an estimate to the Chairman 
        of the Budget Committee of the Senate and the House of 
        Representatives (as the case may be) and certify 
        whether the legislative recommendations would balance 
        the total budget by fiscal year 2002.
            (4) Certification.--If the Congressional Budget 
        Office certifies that such legislative recommendations 
        would balance the total budget by fiscal year 2002, the 
        Chairman shall submit such certification in his 
        respective House.
    (b) Procedure in the Senate.--
            (1) Adjustments.--For the purposes of points of 
        order under the Congressional Budget Act of 1974 and 
        this concurrent resolution on the budget, the 
        appropriate budgetary allocations and aggregates shall 
        be revised to be consistent with the instructions set 
        forth in section 105(b) for legislation that reduces 
        revenues by providing family tax relief and incentives 
        to stimulate savings, investment, job creation, and 
        economic growth.
            (2) Revised aggregates.--Upon the reporting of 
        legislation pursuant to section 105(b) and again upon 
        the submission of a conference report on such 
        legislation, the Chairman of the Committee on the 
        Budget of the Senate shall submit appropriately revised 
        budgetary allocations and aggregates.
            (3) Effect of revised allocations and aggregates.--
        Revised allocations and aggregates submitted under 
        paragraph (2) shall be considered for the purposes of 
        the Congressional Budget Act of 1974 as allocations and 
        aggregates contained in this resolution.
    (c) Contingencies.--This section shall not apply unless the 
reconciliation legislation--
            (1) complies with the sum of the reconciliation 
        directives for the period of fiscal years 1996 through 
        2002 provided in section 105(a); and
            (2) would balance the total budget for fiscal year 
        2002 and the period of fiscal years 2002 through 2005.
    (d) Definitions.--For the purposes of this section, the 
term ``balance the total budget'' means total outlays are less 
than or equal to total revenues for a fiscal year or a period 
of fiscal years.

SEC. 206. SALE OF GOVERNMENT ASSETS.

    (a) Sense of the Congress.--It is the sense of the Congress 
that--
            (1) the prohibition on scoring asset sales has 
        discouraged the sale of assets that can be better 
        managed by the private sector and generate receipts to 
        reduce the Federal budget deficit;
            (2) the President's fiscal year 1996 budget 
        included $8,000,000,000 in receipts from asset sales 
        and proposed a change in the asset sale scoring rule to 
        allow the proceeds from these sales to be scored;
            (3) assets should not be sold if such sale would 
        increase the budget deficit over the long run; and
            (4) the asset sale scoring prohibition should be 
        repealed and consideration should be given to replacing 
        it with a methodology that takes into account the long-
        term budgetary impact of asset sales.
    (b) Budgetary Treatment.--For purposes of any concurrent 
resolution on the budget and the Congressional Budget Act of 
1974, the amounts realized from sales of assets shall be scored 
with respect to the level of budget authority, outlays, or 
revenues.
    (c) Definitions.--For purposes of this section, the term 
``sale of an asset'' shall have the same meaning as under 
section 250(c)(21) of the Balanced Budget and Emergency Deficit 
Control Act of 1985.
    (d) Treatment of Loan Assets.--For the purposes of this 
section, the sale of loan assets or the prepayment of a loan 
shall be governed by the terms of the Federal Credit Reform Act 
of 1990.

SEC. 207. CREDIT REFORM AND DIRECT STUDENT LOANS.

    For the purposes of any concurrent resolution on the budget 
and the Congressional Budget Act of 1974, the cost of a direct 
loan under the Federal direct student loan program shall be the 
net present value, at the time when the direct loan is 
disbursed, of the following cash flows for the estimated life 
of the loan:
            (1) Loan disbursements.
            (2) Repayments of principal.
            (3) Payments of interest and other payments by or 
        to the Government over the life of the loan after 
        adjusting for estimated defaults, prepayments, fees, 
        penalties, and other recoveries.
            (4) Direct expenses, including--
                    (A) activities related to credit extension, 
                loan origination, loan servicing, management of 
                contractors, and payments to contractors, other 
                government entities, and program participants;
                    (B) collection of delinquent loans; and
                    (C) writeoff and closeout of loans.

SEC. 208. EXTENSION OF BUDGET ACT 60-VOTE ENFORCEMENT THROUGH 2002.

    Notwithstanding section 275(b) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (as amended by sections 
13112(b) and 13208(b)(3) of the Budget Enforcement Act of 
1990), the second sentence of section 904(c) of the 
Congressional Budget Act of 1974 (except insofar as it relates 
to section 313 of that Act) and the final sentence of section 
904(d) of that Act (except insofar as it relates to section 313 
of that Act) shall continue to have effect as rules of the 
Senate through (but no later than) September 30, 2002.
SEC. 209. REPEAL OF IRS ALLOWANCE.

    Section 25 of House Concurrent Resolution 218 (103d 
Congress, 2d Session) is repealed.

SEC. 210. TAX REDUCTION CONTINGENT ON BALANCED BUDGET IN THE HOUSE OF 
                    REPRESENTATIVES

    (a) Estimates and Certification.--
            (1) Estimates.--Upon reporting a reconciliation 
        bill to carry out this resolution, the chairman of the 
        Committee on the Budget of the House shall submit such 
        legislation to the Director of the Congressional Budget 
        Office (hereinafter in this section referred to as the 
        ``Director''). The Director shall provide an estimate 
        of whether the enactment of the bill, as reported, 
        would result in a balanced total budget by fiscal year 
        2002.
            (2) Certification.--(A) If the enactment of the 
        bill as estimated by the Director would so balance the 
        budget, the chairman of the Committee on the Budget is 
        authorized to so certify.
            (B) If the enactment of the bill as estimated by 
        the Director would not so balance the budget, the 
        chairman of the Committee on the Budget shall notify 
        the chairman of the Committee on Rules. The Committee 
        on Rules may recommend to the House a resolution 
        providing for the consideration of an amendment in the 
        nature of a substitute consisting of the text of the 
        reconciliation bill reported by the Committee on the 
        Budget, modified by amendments to achieve a balanced 
        budget by fiscal year 2002 and amendments described in 
        section 310(d) of the Congressional Budget Act of 1974, 
        as an original bill for purposes of amendment.
            (C) If the Committee on Rules so recommends, the 
        chairman of the Committee on the Budget shall submit 
        the substitute text to the Director, who shall provide 
        an estimate of whether the substitute text would 
        balance the total budget by fiscal year 2002. If the 
        enactment of the bill as estimated by the Director 
        would so balance the budget, the chairman of the 
        Committee on the Budget is authorized to so certify.
            (3) Basis of estimate.--In preparing any estimate 
        under this section, the Director shall include the 
        budgetary impact of all legislation enacted through the 
        date of submission of that estimate and of all 
        legislation incorporated by reference in the 
        reconciliation bill, use the economic and technical 
        assumptions underlying this resolution, assume 
        compliance with the total discretionary levels assumed 
        in this resolution unless superseded by law, and 
        include changes in outlays and revenues estimated to 
        result from the economic impact of balancing the budget 
        by fiscal year 2002 as estimated by the Congressional 
        Budget Office in Table B-4 in Appendix B of its 
        Analysis of the President's Budgetary Proposals for 
        Fiscal Year 1996.
    (b) Procedure in the House of Representatives.--
            (1) Adjustments.--Upon certification by the 
        chairman of the Committee on the Budget of the House 
        under subsection (a), the chairman shall submit a 
        report to the House that revises the appropriate 
        budgetary allocations, aggregates, and totals to be 
        consistent with the instructions set forth in section 
        105(a)(2)(B)(xii)(II).
            (2) Effect of revised allocations, aggregates, and 
        totals.--In the House of Representatives, revised 
        allocations, aggregates, and totals submitted under 
        paragraph (1) shall be deemed as the allocations, 
        aggregates, and totals contained in this resolution for 
        all purposes under the Congressional Budget Act of 
        1974.
            (3) Statement regarding point of order.--If the 
        chairman of the House Committee on the Budget does not 
        certify a balanced budget by 2002, then the 
        reconciliation bill to carry out this resolution would 
        be subject to a point of order under the Congressional 
        Budget Act of 1974.

SEC. 211. EXERCISE OF RULEMAKING POWERS.

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

 TITLE III--SENSE OF THE CONGRESS, HOUSE OF REPRESENTATIVES, AND SENATE

SEC. 301. SENSE OF THE CONGRESS ON THE ELIMINATION OF FRAUD, WASTE, AND 
                    ABUSE IN THE MEDICARE SYSTEM.

    It is the sense of the Congress that, in order to meet the 
aggregate levels in this budget resolution--
            (1) the committees of jurisdiction should give high 
        priority to proposals that identify, eliminate, and 
        recover funds expended from the medicare trust funds 
        due to fraud and abuse in the medicare program in order 
        to address the long-term solvency of medicare; and
            (2) any funds recovered from enhanced antifraud and 
        abuse efforts should be used to enhance the solvency of 
        medicare.

SEC. 302. SENSE OF CONGRESS REGARDING PRIVATIZATION OF THE STUDENT LOAN 
                    MARKETING ASSOCIATION (SALLIE MAE).

    It is the sense of that the Student Loan Marketing 
Association should be restructured as a private corporation.

SEC. 303. SENSE OF THE CONGRESS REGARDING THE DEBT LIMIT.

    It is the sense of the Congress that--
            (1) the reconciliation legislation under section 
        105 of this budget resolution should be enacted prior 
        to passage of legislation that will extend the public 
        debt limit; and
            (2) the extension of the public debt should be set 
        at levels and for durations that ensure a balanced 
        budget by fiscal year 2002, consistent with this budget 
        resolution.
SEC. 304. SENSE OF THE CONGRESS ASSUMPTIONS.

    It is the sense of the Congress that the aggregates and 
functional levels included in this budget resolution assume 
that--
            (1) Federal programs should be restructured to meet 
        identified priorities in the most effective and 
        efficient manner, to eliminate obsolete programs, and 
        to reduce duplication;
            (2) Federal programs should be reviewed to 
        determine whether they are more appropriately the 
        responsibility of the States and, for programs that 
        should be under State responsibility, that--
                    (A) Federal funding of these programs 
                should be provided in a manner that rewards 
                work, promotes families, and provides a helping 
                hand during times of crisis;
                    (B) the programs should be returned in the 
                form of block grants that provide maximum 
                flexibility to the States and localities to 
                ensure the maximum benefit at the least cost to 
                the American taxpayer;
                    (C) Federal funds should not supplant 
                existing expenditures by other sources, both 
                public and private; and
                    (D) the Federal interest in the program 
                should be protected with adequate safeguards, 
                such as auditing or maintenance of effort 
                provisions, and that Federal goals and 
                principles may be appropriate;
            (3) Congress should examine Federal functions to 
        determine those that could be more conveniently, 
        efficiently, and effectively performed by the private 
        sector and, in order to facilitate the privatization of 
        these functions--
                    (A) provisions of law that prohibit or 
                ``lockout'' the private sector from competing 
                for the provision of certain services should be 
                eliminated;
                    (B) section 257(e) of the Balanced Budget 
                and Emergency Deficit Control Act of 1985 
                should be repealed or modified to permit the 
                sale of assets when appropriate to 
                privatization goals;
                    (C) each Federal agency and department 
                should be encouraged to develop and evaluate 
                privatization initiatives; and
                    (D) the ``Common Rule'', modified by 
                Executive Order 12803, should be modified to 
                delete grant repayment provisions which 
                restrict local governments and prevent private 
                sector investments in Federal-aid facilities;
            (4) Congress, in fulfilling its responsibility to 
        future generations, should--
                    (A) enact a plan that balances the budget 
                by 2002 and develop a regimen for paying off 
                the Federal debt; and
                    (B) once the budget is in balance, use the 
                surpluses to implement that regimen;
            (5) in considering child nutrition programs--
                    (A) reductions in nutrition program 
                spending should be achieved without 
                compromising the nutritional well-being of 
                program recipients;
                    (B) school lunches should continue to meet 
                minimal nutrition requirements and should not 
                have to compete with alternative foods of 
                minimal nutritional value during lunch hours; 
                and
                    (C) the content of the Women, Infants, and 
                Children (WIC) food package should continue to 
                be based on scientific evidence; and
            (6) science and technology development are critical 
        to sustainable long-term economic growth and priority 
        should be given to Federal funding for science and 
        basic and applied research.

SEC. 305. SENSE OF THE SENATE THAT TAX REDUCTIONS SHOULD BENEFIT 
                    WORKING FAMILIES.

    It is the sense of the Senate that this concurrent 
resolution on the budget assumes any reductions in taxes should 
be structured to benefit working families by providing family 
tax relief and incentives to stimulate savings, investment, job 
creation, and economic growth.

SEC. 306. SENSE OF THE SENATE ON THE DISTRIBUTION OF AGRICULTURE 
                    SAVINGS.

    It is the sense of the Senate that, in response to the 
reconciliation instructions in section 105 of this resolution, 
the Senate Committee on Agriculture, Nutrition, and Forestry 
should provide that no more than 20 percent of the savings be 
achieved in commodity programs.

SEC. 307. SENSE OF THE SENATE ON THE ESTABLISHMENT OF A MEDICARE 
                    SOLVENCY COMMISSION.

    It is the sense of the Senate that, in order to meet the 
aggregates and levels in this budget resolution--
            (1) a special bipartisan commission should be 
        established immediately to make recommendations on the 
        most appropriate response to the short-term solvency 
        crisis facing medicare;
            (2) the commission should report its 
        recommendations under paragraph (1) at the earliest 
        possible date, in order that the committees of 
        jurisdiction may give due consideration to those 
        recommendations in fashioning their response pursuant 
        to section 105 of this resolution; and
            (3) the commission should study, evaluate, and make 
        recommendations to sustain the long-term viability of 
        the medicare system and should report those 
        recommendations to Congress by February 1, 1996.

SEC. 308. SENSE OF THE SENATE REGARDING PROTECTION OF CHILDREN'S 
                    HEALTH.

    It is the sense of the Senate that, in meeting the 
aggregates and levels in this resolution, the committees of 
jurisdiction of the Senate--
            (1) should give careful consideration to the impact 
        of medicaid reform legislation on children's health; 
        and
            (2) should encourage States to place a priority on 
        funding for low-income pregnant women and children 
        within any medicaid reform legislation that allows 
        greater flexibility to the States in the delivery of 
        care and in controlling the rate of growth in costs 
        under the program.

SEC. 309. SENSE OF THE SENATE ON THE ASSUMPTIONS.

    It is the sense of the Senate that the aggregates and 
functional levels included in this budget resolution assume 
that--
            (1) beginning with fiscal year 1997, the Federal 
        government should establish, implement, and maintain a 
        uniform accounting system and provide financial 
        statements in accordance with accepted accounting 
        principles under standards and interpretations 
        recommended by the Federal Accounting Standards 
        Advisory Board;
            (2) Congress should revise the Internal Revenue 
        Code to ensure that very wealthy individuals are not 
        able to reduce or avoid United States income, estate or 
        gift tax liability by relinquishing their U.S. 
        citizenship and, that, any savings resulting from this 
        revision should be used to reduce the deficit;
            (3) in furtherance of the goals of the Decade of 
        the Brain, full funding should be provided for research 
        on brain diseases and disorders;
            (4) the essential air service program should 
        receive sufficient funding to continue to provide air 
        service to small rural communities;
            (5) funds will be made available to reimburse 
        States for the costs of implementing the National Voter 
        Registration Act of 1993; and
            (6) a temporary nonpartisan commission should be 
        established to make recommendations concerning the 
        appropriateness and accuracy of the methodology and 
        calculations that determine the Consumer Price Index 
        (CPI) and those recommendations should be submitted to 
        the Bureau of Labor Statistics at the earliest possible 
        date.

SEC. 310. HOUSE STATEMENT ON AGRICULTURE SAVINGS.

    The House of Representatives shall re-examine budget 
reductions for agricultural programs in the United States 
Department of Agriculture for fiscal years 1999 and 2000 unless 
the following conditions are met:
            (1) Land values on agricultural land on January 1, 
        1998, are at least 95 percent of the same values on the 
        date of adoption of this resolution.
            (2) There is enacted into law regulatory relief for 
        the agricultural sector in the areas of wetlands 
        regulation, the Endangered Species Act, private 
        property rights and cost-benefit analyses of proposed 
        regulations.
            (3) There is tax relief for producers in the form 
        of capital gains tax reduction, increased estate tax 
        exemptions and mechanisms to average tax loads over 
        strong and weak income years.
            (4) There is no government interference in the 
        international market in the form of agricultural trade 
        embargoes in effect and there is successful 
        implementation and enforcement of trade agreements, 
        including the General Agreement on Tariffs and Trade 
        (GATT) and the North American Free Trade Agreement 
        (NAFTA) to lower export subsidies and reduce import 
        barriers to trade imposed by foreign governments.

SEC. 311. SENSE OF THE HOUSE ON BASELINES.

    (a) Findings.--The House of Representatives finds that--
            (1) baselines are projections of future spending if 
        existing policies remain unchanged;
            (2) under baseline assumptions, spending 
        automatically rises with inflation even if such 
        increases are not provided under current law;
            (3) baseline budgeting is inherently biased against 
        policies that would reduce the projected growth in 
        spending because such policies are scored as a 
        reduction from a rising baseline; and
            (4) the baseline concept has encouraged Congress to 
        abdicate its constitutional responsibility to control 
        the public purse for programs which are automatically 
        funded under existing law.
    (b) Sense of the House.--It is the sense of the House of 
Representatives that baseline budgeting should be replaced with 
a form of budgeting that requires full justification and 
analysis of budget proposals and maximizes congressional 
accountability for public spending.

SEC. 312. SENSE OF THE HOUSE REGARDING A COMMISSION ON THE SOLVENCY OF 
                    THE FEDERAL MILITARY AND CIVIL SERVICE RETIREMENT 
                    FUNDS.

    (a) Findings.--The House of Representatives finds that the 
Federal retirement system, for both military and civil service 
retirees, currently has liabilities of $1,100,000,000,000, 
while holding assets worth $340,000,000,000 and anticipating 
employee contributions of $220,000,000,000, which leaves an 
unfunded liability of $540,000,000,000,000.
    (b) Sense of House.--It is the sense of the House of 
Representatives that a high-level commission should be convened 
to study the problems associated with the Federal retirement 
system and make recommendations that will ensure the long-term 
solvency of the military and civil service retirement funds.

SEC. 313. SENSE OF THE HOUSE REGARDING THE REPEAL OF HOUSE RULE XLIX.

    It is the sense of the House that rule XLIX of the Rules of 
the House of Representatives (popularly known as the Gephardt 
rule) should be repealed.

SEC. 314. SENSE OF THE HOUSE ON EMERGENCIES.

    (a) Findings.--The House of Representative finds that--
            (1) The Budget Enforcement Act of 1990 exempted 
        from the discretionary spending limits and the Pay-As-
        You-Go requirements for entitlement and tax legislation 
        funding requirements that are designated by Congress 
        and the President as an emergency.
            (2) Congress and the President have increasingly 
        misused the emergency designation by--
                    (A) designating funding as an emergency 
                that is neither unforeseen nor a genuine 
                emergency; and
                    (B) circumventing spending limits or 
                passing controversial items that would not pass 
                scrutiny in a free-standing bill.
    (b) Sense of the House.--It is the sense of the House that 
Congress should study alternative approaches to budgeting for 
emergencies, including codifying the definition of an emergency 
and establishing contingency funds to pay for emergencies.
      And the Senate agree to the same.
                                   John R. Kasich,
                                   Dave Hobson,
                                   Bob Walker,
                                   Jim Kolbe,
                                   Christopher Shays,
                                   Wally Herger,
                                   Wayne Allard,
                                   Bob Franks,
                                   Steve Largent,
                                   Sue Myrick,
                                   Mike Parker,
                                 Managers on the Part of the House.

                                   Pete Domenici,
                                   Chuck Grassley,
                                   Don Nickles,
                                   Trent Lott,
                                   Hank Brown,
                                   Slade Gorton,
                                   Judd Gregg,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the Senate and the House at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the concurrent resolution (House 
Concurrent Resolution 67) setting forth the congressional 
budget for the United States Budget for the fiscal years 1996, 
1997, 1998, 1999, 2000, 2001, and 2002, submit the following 
joint statement to the House and the Senate in explanation of 
the effect of the action agreed upon by the managers and 
recommended in the accompanying conference report:
      The Senate amendment struck out all of the House 
resolution after the resolving clause and inserted a substitute 
text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment which is a substitute for the 
House resolution and the Senate amendment.

                EXPLANATION OF THE CONFERENCE AGREEMENT

             aggregates and functional level summary tables

(Secs. 2 and 3 of the House resolution, Secs. 101 and 104 of the Senate 
     amendment, and Secs. 101 and 104 of the conference agreement)

Aggregates and function levels
      The following tables show the budget aggregates and 
functional levels included in the conference agreement, the 
House resolution, and the Senate amendment. While the 
conference agreement includes only the on-budget figures, 
pursuant to law, these tables also display the off-budget and 
total budget figures. The last table in this part compares the 
conference agreement to the 1995 and current law levels.

                                                HOUSE RESOLUTION                                                
                                              [Dollars in billions]                                             
----------------------------------------------------------------------------------------------------------------
                                    1995      1996      1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
050: National                                                                                                   
 Defense...........         BA      $261.4    $267.3    $269.3    $277.3    $281.3    $287.3    $287.3    $287.2
                            OT       269.6     265.1     265.3     265.3     271.3     279.3     279.3    $279.2
150: International                                                                                              
 Affairs...........         BA        18.9      15.8      13.7      11.3       9.7      10.5      12.0      12.0
                            OT        18.9      17.0      15.1      13.3      11.5      10.0      11.1      10.7
250: Science, Space                                                                                             
 and Technology....         BA        17.2      16.7      16.3      15.7      15.3      14.9      14.9      14.9
                            OT        17.5      16.9      16.6      16.0      15.4      15.0      14.9      14.9
270: Energy........         BA         6.3       4.4       3.9       3.6       3.9       3.6       3.6       3.5
                            OT         4.9       4.3       3.2       2.9       3.1       2.7       2.5       2.3
300: Natural                                                                                                    
 Resources and                                                                                                  
 Environment.......         BA        22.3      19.3      19.1      17.2      18.6      17.4      17.9      17.8
                            OT        21.7      20.2      19.9      17.8      19.1      17.8      18.2      18.1
350: Agriculture...         BA        14.0      13.0      12.8      11.6      11.4      10.2       8.1       8.1
                            OT        12.7      11.8      11.5      10.4      10.1       9.2       7.1       7.0
  370: Commerce and                                                                                             
 Housing Credit:                                                                                                
    On-budget......         BA         5.4       2.3       4.1       2.8       2.2       1.9       1.3       1.0
                            OT       -13.7      -6.9      -2.6      -4.7      -3.0      -2.2      -2.5      -2.6
    Off-budget.....         BA         3.5       4.1       6.8       1.2       2.9      -0.2  ........  ........
                            OT         0.2      -0.0      -0.8      -1.4      -0.1      -1.4  ........  ........
                    --------------------------------------------------------------------------------------------
      Total........         BA         8.9       6.4      10.9       4.0       5.0       1.7       1.3       1.0
                            OT       -13.5      -7.0      -3.5      -6.1      -3.1      -3.6      -2.5      -2.6
400: Transportation         BA        42.5      40.5      42.7      43.5      43.7      44.3      43.8      43.3
                            OT        39.3      38.8      37.5      36.6      35.6      34.9      39.3      33.7
450: Community and                                                                                              
 Regional                                                                                                       
 Development.......         BA         9.2       6.7       6.7       6.7       6.7       6.7       6.2       6.1
                            OT        11.6       9.9       7.8       6.7       6.5       6.6       6.4       6.4
500: Education,                                                                                                 
 Training,                                                                                                      
 Employment and                                                                                                 
 Social Services...         BA        58.3      45.7      45.0      44.9      45.4      45.9      45.0      44.6
                            OT        54.7      52.3      46.4      44.6      44.7      45.2      44.2      43.7
550: Health........         BA       116.6     121.9     127.7     132.1     136.7     141.5     146.3     149.1
                            OT       115.8     122.3     127.8     132.2     136.7     141.4     146.2     148.9
570: Medicare......         BA       162.6     179.1     188.7     196.5     209.0     213.9     224.0     234.0
                            OT       161.1     176.8     187.1     194.9     206.4     212.0     222.0     231.8
600: Income                                                                                                     
 Security..........         BA       219.9     222.7     231.8     248.4     255.4     265.9     267.6     277.6
                            OT       222.2     225.0     235.3     243.9     254.3     267.6     269.0     279.1
  650: Social                                                                                                   
 Security:                                                                                                      
    On-budget......         BA         6.8       5.9       8.1       8.8       9.6      10.5      11.1      11.7
                            OT         9.3       8.5      10.5      11.3      12.1      12.9      13.5      14.1
    Off-budget.....         BA       330.1     348.4     366.0     385.5     404.3     423.4     443.9     465.5
                            OT       326.9     345.7     362.5     381.9     400.5     419.8     440.2     461.6
                    --------------------------------------------------------------------------------------------
      Total........         BA       336.9     354.3     374.0     394.3     413.9     433.9     454.9     477.2
                            OT       336.2     354.2     373.1     393.1     412.6     432.7     453.7     475.7
700: Veterans                                                                                                   
 Benefits..........         BA        37.7      37.6      38.1      38.5      39.1      39.2      39.7      40.1
                            OT        37.4      36.9      38.1      38.5      39.0      40.6      41.2      41.6
750: Administration                                                                                             
 of Justice........         BA        18.5      17.8      16.9      16.6      16.4      16.4      16.0      15.9
                            OT        17.1      17.8      17.1      16.9      16.7      16.6      16.2      16.1
  Total Spending:                                                                                               
    On-budget......         BA     1,260.9   1,287.3   1,324.2   1,356.5   1,391.7   1,421.3   1,436.2   1,459.8
                            OT     1,243.7   1,288.4   1,315.9   1,327.6   1,366.7   1,400.2   1,419.5   1,437.3
    Off-budget.....         BA       292.6     306.2     321.1     329.5     343.9     353.5     367.2     381.3
                            OT       286.1     299.4     310.0     323.3     337.2     348.8     363.5     377.4
                    --------------------------------------------------------------------------------------------
      Total........         BA     1,553.6   1,593.6   1,645.3   1,686.0   1,735.6   1,774.9   1,803.4   1,841.1
                            OT     1,529.9   1,587.8   1,625.9   1,650.9   1,703.9   1,749.0   1,783.0   1,814.7
  Revenues:                                                                                                     
    On-budget......  ...........     997.8   1,057.5   1,058.5   1,099.6   1,138.7   1,189.3   1,247.2   1,316.6
    Off-budget.....  ...........     357.4     374.7     392.0     411.4     430.9     452.0     475.2     498.6
                    --------------------------------------------------------------------------------------------
      Total........  ...........   1,355.2   1,432.2   1,450.5   1,511.0   1,569.6   1,641.3   1,722.4   1,815.2
  Deficit:                                                                                                      
    On-budget......  ...........    -245.9    -230.9    -257.4    -228.0    -228.0    -211.0    -172.3    -120.7
    Off-budget.....  ...........      71.3      75.3      81.9      88.1      93.7     103.2     111.7     121.2
                    --------------------------------------------------------------------------------------------
      Total........  ...........    -174.6    -155.6    -175.5    -139.9    -134.3    -107.8     -60.6       0.5
800: General                                                                                                    
 Government........         BA        13.3      11.6      11.6      12.5      11.7      12.1      11.3      11.3
                            OT        13.4      12.4      11.8      12.6      11.5      12.0      11.1      11.0
  900: Net                                                                                                      
 Interest:                                                                                                      
    On-budget......         BA       269.9     295.8     304.3     308.7     314.7     319.9     320.6     323.3
                            OT       269.9     295.8     304.3     308.7     314.7     319.9     320.6     323.3
    Off-budget.....         BA       -34.5     -39.5     -44.5     -49.7     -55.1     -60.9     -67.2     -74.0
                            OT       -34.5     -39.5     -44.5     -49.7     -55.1     -60.9     -67.2     -74.0
                    --------------------------------------------------------------------------------------------
      Total........         BA       235.4     256.4     259.8     259.0     259.5     258.9     253.4     249.4
                            OT       235.3     256.4     259.8     259.0     259.5     258.9     253.4     249.4
920: Allowances....         BA    ........      -2.3      -2.4      -2.4      -2.5      -2.6      -2.6      -2.6
                            OT    ........      -1.9      -2.3      -2.5      -2.7      -2.8      -2.9      -2.9
  950:                                                                                                          
 Undistributed                                                                                                  
 Offsetting                                                                                                     
 Receipts:                                                                                                      
    On-budget......         BA       -39.8     -34.4     -34.2     -37.6     -36.4     -38.1     -37.9     -39.0
                            OT       -39.8     -34.4     -34.2     -37.6     -36.4     -38.1     -37.9     -39.0
    Off-budget.....         BA        -6.4      -6.8      -7.1      -7.6      -8.1      -8.7      -9.5     -10.3
                            OT        -6.4      -6.8      -7.1      -7.6      -8.1      -8.7      -9.5     -10.3
                    --------------------------------------------------------------------------------------------
      Total........         BA       -46.2     -41.2     -41.3     -45.2     -44.5     -46.9     -47.4     -49.3
                            OT       -46.2     -41.2     -41.3     -45.2     -44.5     -46.9     -47.4     -49.3
----------------------------------------------------------------------------------------------------------------


                                                SENATE AMENDMENT                                                
                                              [Dollars in billions]                                             
----------------------------------------------------------------------------------------------------------------
                                    1995      1996      1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
050: National                                                                                                   
 Defense...........         BA      $261.4    $257.7    $253.4    $259.6    $266.2    $276.0    $275.9    $275.9
                            OT       269.6     261.1     257.0     254.5     259.6     267.8     267.7     269.2
150: International                                                                                              
 Affairs...........         BA        18.9      15.4      14.3      13.5      12.6      14.1      14.3      14.2
                            OT        18.9      16.9      15.1      14.3      13.5      13.1      13.4      13.3
250: Science, Space                                                                                             
 and Technology....                                                                                             
                            BA        17.2      16.7      16.3      16.1      16.0      15.8      15.8      15.8
                            OT        17.5      16.7      16.6      16.3      16.0      15.9      15.9      15.9
270: Energy........         BA         6.3       2.9       1.7       3.3       4.2       4.1       4.0       4.0
                            OT         4.9       2.7       1.0       2.6       3.1       2.8       2.9       2.9
300: Natural                                                                                                    
 Resources and                                                                                                  
 Environment.......         BA        22.3      19.5      18.2      15.4      16.6      16.2      14.9      15.7
                            OT        21.7      20.4      20.1      17.9      18.3      17.3      15.8      16.5
350: Agriculture...         BA        14.0      13.1      12.2      11.8      11.7      11.7      10.5      10.1
                            OT        12.7      11.9      10.9      10.6      10.4      10.6       9.4       9.1
  370: Commerce and                                                                                             
 Housing Credit:                                                                                                
     On-budget.....         BA         5.4       2.5       1.5       0.6       0.1       1.7       0.5       0.2
                            OT       -13.7      -7.0      -5.4      -7.0      -5.1      -2.5      -3.3      -3.4
    Off-budget.....         BA         3.5       4.1       6.8       1.2       2.9      -0.2  ........  ........
                            OT         0.2      -0.0      -0.8      -1.4      -0.1      -1.4  ........  ........
                    --------------------------------------------------------------------------------------------
      Total........         BA         8.9       6.6       8.3       1.8       3.0       1.5       0.5       0.2
                            OT       -13.5      -7.0      -6.2      -8.4      -5.2      -3.9      -3.3      -3.4
400: Transportation         BA        42.5      36.5      38.8      39.4      40.2      41.2      41.0      40.8
                            OT        39.3      38.3      32.8      31.8      31.3      31.1      31.1      31.1
450: Community and                                                                                              
 Regional                                                                                                       
 Development.......         BA         9.2       5.8       5.5       5.3       5.3       5.2       4.6       4.5
                            OT        11.6       9.8       7.3       5.6       5.2       5.2       5.1       5.1
500: Education,                                                                                                 
 Training,                                                                                                      
 Employment and                                                                                                 
 Social Services...         BA        58.3      49.0      48.4      48.4      48.8      49.4      48.9      49.1
                            OT        54.7      52.6      49.0      48.2      48.2      48.8      48.3      48.5
550: Health........         BA       116.6     121.1     127.6     133.1     138.0     142.1     146.2     150.6
                            OT       115.8     121.0     127.4     133.2     137.9     141.9     146.0     150.3
570: Medicare......         BA       162.6     171.9     180.5     193.1     207.4     221.4     238.9     258.9
                            OT       161.1     169.5     178.9     191.4     204.8     219.5     236.9     256.7
600: Income                                                                                                     
 Security..........         BA       219.9     226.3     233.7     253.0     256.0     272.6     277.5     291.9
                            OT       222.2     225.9     235.6     246.1     257.9     272.6     277.4     291.7
  650: Social                                                                                                   
 Security:                                                                                                      
    On-budget......         BA         6.8       5.9       8.1       8.8       9.6      10.5      11.1      11.7
                            OT         9.3       8.5      10.5      11.3      12.1      12.9      13.5      14.1
    Off-budget.....         BA       330.1     348.4     366.0     385.5     405.4     426.2     448.5     472.0
                            OT       326.9     345.7     362.5     381.9     401.7     422.7     444.8     468.1
                    --------------------------------------------------------------------------------------------
      Total........         BA       336.9     354.3     374.0     394.3     415.0     436.7     459.6     483.7
                            OT       336.2     354.2     373.1     393.1     413.7     435.6     458.3     482.2
700: Veterans                                                                                                   
 Benefits..........         BA        37.7      37.4      37.5      37.6      37.9      37.9      38.3      38.7
                            OT        37.4      36.9      37.7      38.0      38.2      39.4      40.1      40.4
750: Administration                                                                                             
 of Justice........         BA        18.5      20.0      20.7      21.4      22.3      22.3      21.9      21.8
                            OT        17.1      19.6      21.2      22.4      23.1      23.7      23.3      23.2
800: General                                                                                                    
 Government........         BA        13.3      12.5      12.4      12.2      12.1      12.0      11.6      11.6
                            OT        13.4      13.0      12.4      12.3      12.0      11.9      11.7      11.6
  900: Net                                                                                                      
 Interest:                                                                                                      
    On-budget......         BA       269.9     297.9     308.9     316.6     327.8     338.6     345.5     353.3
                            OT       269.9     297.9     308.9     316.6     327.8     338.6     345.5     353.3
    Off-budget.....         BA       -34.5     -39.5     -44.5     -49.7     -55.1     -60.9     -67.2     -74.0
                            OT       -34.5     -39.5     -44.5     -49.7     -55.1     -60.9     -67.2     -74.0
                    --------------------------------------------------------------------------------------------
      Total........         BA       235.4     258.5     264.4     266.9     272.7     277.7     278.3     279.3
                            OT       235.3     258.5     264.4     266.9     272.7     277.7     278.3     279.3
920: Allowances....         BA    ........      -9.6      -9.5      -8.3      -7.8      -6.7      -6.7      -6.7
                            OT    ........      -6.9      -9.4      -8.6      -8.1      -7.1      -7.1      -7.1
  950:                                                                                                          
 Undistributed                                                                                                  
 Offsetting                                                                                                     
 Receipts:                                                                                                      
    On-budget......         BA       -39.8     -33.1     -33.8     -36.3     -37.7     -39.7     -41.1     -42.3
                            OT       -39.8     -33.1     -33.8     -36.3     -37.7     -39.7     -41.1     -42.3
    Off-budget.....         BA        -6.4      -6.8      -7.1      -7.6      -8.1      -8.7      -9.5     -10.3
                            OT        -6.4      -6.8      -7.1      -7.6      -8.1      -8.7      -9.5     -10.3
                    --------------------------------------------------------------------------------------------
      Total........         BA       -46.2     -39.9     -40.9     -43.9     -45.8     -48.5     -50.5     -52.6
                            OT       -46.2     -39.9     -40.9     -43.9     -45.8     -48.5     -50.5     -52.6
  Total Spending:                                                                                               
    On-budget......         BA     1,260.9   1,269.4   1,296.5   1.344.7   1,387.3   1,446.3   1,473.7   1,519.7
                            OT     1,243.7   1,275.7   1,293.8   1,321.1   1,368.7   1,423.6   1.452.6   1,500.1
    Off-budget.....         BA       292.6     306.2     321.1     329.5     345.1     356.4     371.9     387.8
                            OT       286.1     299.4     310.0     323.3     338.4     351.6     368.1     383.9
                    --------------------------------------------------------------------------------------------
      Total........         BA     1,553.6   1,575.7   1,617.6   1,674.2   1,732.4   1,802.7   1,845.5   1,907.5
                            OT     1,529.9   1,575.1   1,603.8   1,644.3   1,707.1   1,775.3   1,820.7   1,884.0
  Revenues:                                                                                                     
    On-budget......  ...........     997.8   1,043.3   1,083.9   1,135.5   1,189.8   1,248.9   1,315.7   1,386.7
    Off-budget.....  ...........     357.4     374.7     392.0     411.4     430.9     452.0     475.2     498.6
                    --------------------------------------------------------------------------------------------
Total..............  ...........   1,355.2   1,418.0   1,475.9   1,546.9   1,620.7   1,700.9   1,790.9   1,885.3
                                                                                                                
    On-budget......  ...........    -245.9    -232.4    -209.9    -185.6    -178.9    -174.7    -136.8    -113.4
    Off-budget.....  ...........      71.3      75.3      81.9      88.1      92.5     100.4     107.1     114.7
                    --------------------------------------------------------------------------------------------
      Total........  ...........    -174.6    -157.1    -127.9     -97.5     -86.4     -74.3     -29.8       1.3
----------------------------------------------------------------------------------------------------------------


                                              CONFERENCE AGREEMENT                                              
                                              [Dollars in billions]                                             
----------------------------------------------------------------------------------------------------------------
                                    1995      1996      1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
050: National                                                                                                   
 Defense...........         BA      $261.4    $264.7    $267.3    $269.0    $271.7    $274.4    $277.1    $280.0
                            OT       269.6     263.1     265.0     263.8     267.2     270.9     270.0     270.0
150: International                                                                                              
 Affairs...........         BA        18.9      15.8      14.0      12.4      11.2      12.7      12.8      12.8
                            OT        18.9      17.0      15.1      13.9      12.6      11.9      12.0      11.8
250: Science, Space                                                                                             
 and Technology....         BA        17.2      16.7      16.3      15.9      15.6      15.3      15.3      15.3
                            OT        17.5      16.8      16.6      16.1      15.7      15.5      15.4      15.4
270: Energy........         BA         6.3       4.6       4.2       3.8       3.6       3.4       3.3       3.3
                            OT         4.9       4.5       3.5       3.1       2.6       2.2       2.2       2.2
300: Natural                                                                                                    
 Resources and                                                                                                  
 Environment.......         BA        22.3      19.5      19.2      17.7      18.2      17.9      17.1      17.5
                            OT        21.7      20.3      20.0      18.7      19.0      18.5      17.4      17.7
350: Agriculture...         BA        14.0      13.1      12.5      11.7      11.5      10.9       9.8       9.6
                            OT        12.7      11.8      11.1      10.5      10.3       9.8       8.7       8.5
  370: Commerce and                                                                                             
 Housing Credit:                                                                                                
    On-budget......         BA         5.4       2.6       1.8       0.9       0.4       2.1       0.8       0.6
                            OT       -13.7      -7.0      -5.1      -6.7      -4.8      -2.2      -2.9      -3.0
    Off-budget.....         BA         3.5       4.1       6.8       1.2       2.9      -0.2  ........  ........
                            OT         0.2       0.0      -0.8      -1.4      -0.1      -1.4  ........  ........
                    --------------------------------------------------------------------------------------------
      Total........         BA         8.9       6.7       8.6       2.1       3.3       1.9       0.8       0.6
                            OT       -13.5      -6.9      -5.9      -8.1      -4.9      -3.6      -2.9      -3.0
400: Transportation         BA        42.5      36.6      43.1      43.9      42.6      42.9      42.2      41.8
                            OT        39.3      38.9      37.6      36.6      34.1      33.2      32.4      32.0
450: Community and                                                                                              
 Regional                                                                                                       
 Development.......         BA         9.2       6.6       6.5       6.4       6.4       6.3       5.7       5.6
                            OT        11.6       9.9       7.8       6.5       6.2       6.2       6.1       6.1
500: Education,                                                                                                 
 Training,                                                                                                      
 Employment and                                                                                                 
 Social Services...         BA        58.3      48.4      47.8      47.6      48.4      49.1      48.6      48.8
                            OT        54.7      53.4      48.9      47.3      47.5      48.2      47.7      47.8
550: Health........         BA       116.6     121.0     127.6     131.6     135.7     140.1     144.5     149.2
                            OT       115.8     121.1     127.5     131.7     135.7     139.9     144.3     149.0
570: Medicare......         BA       162.6     176.1     184.3     194.0     205.7     216.5     231.8     249.2
                            OT       161.1     173.7     182.8     192.3     203.1     214.6     229.7     247.0
600: Income                                                                                                     
 Security..........         BA       219.9     225.9     231.6     250.3     253.1     269.5     274.8     288.7
                            OT       222.2     227.6     236.4     245.3     255.8     269.9     274.6     288.3
  650: Social                                                                                                   
 Security:                                                                                                      
    On-budget......         BA         6.8       5.9       8.1       8.8       9.6      10.5      11.1      11.7
                            OT         9.3       8.5      10.5      11.3      12.1      12.9      13.5      14.1
    Off-budget.....         BA       330.1     348.4     366.0     385.5     405.4     426.2     448.5     472.0
                            OT       326.9     345.7     362.5     381.9     401.7     422.7     444.8     468.1
                    --------------------------------------------------------------------------------------------
      Total........         BA       336.9     354.3     374.1     394.3     415.0     436.7     459.6     483.7
                            OT       336.2     354.2     373.0     393.2     413.8     435.6     458.3     482.2
700: Veterans                                                                                                   
 Benefits..........         BA        37.7      37.5      37.9      38.2      38.8      39.1      39.7      40.2
                            OT        37.4      36.9      38.0      38.4      39.0      40.6      41.3      41.8
750: Administration                                                                                             
 of Justice........         BA        18.5      19.8      19.8      20.2      21.0      21.1      20.7      20.6
                            OT        17.1      18.7      18.9      19.7      20.4      20.9      20.5      20.5
800: General                                                                                                    
 Government........         BA        13.3      12.4      12.3      12.2      12.1      12.0      11.6      11.6
                            OT        13.4      12.9      12.3      12.2      12.0      12.0      11.6      11.5
  900: Net                                                                                                      
 Interest:                                                                                                      
    On-budget......         BA       269.9     298.4     310.5     319.4     331.5     342.9     349.9     357.6
                            OT       269.9     298.4     310.5     319.4     331.5     342.9     349.9     357.6
    Off-budget.....         BA       -34.5     -39.5     -44.5     -49.7     -55.1     -60.9     -67.2     -74.0
                            0T       -34.5     -39.5     -44.5     -49.7     -55.1     -60.9     -67.2     -74.0
                    --------------------------------------------------------------------------------------------
      Total........         BA       235.4     258.9     266.0     269.7     276.4     282.0     282.7     283.6
                            OT       235.3     258.9     266.0     269.7     276.4     282.0     282.7     283.6
920: Allowances....         BA          --      -6.4      -6.3      -5.3      -4.7      -3.7      -3.7      -3.7
                            OT          --      -4.8      -6.4      -5.5      -5.0      -4.0      -4.0      -4.1
  950:                                                                                                          
 Undistributed                                                                                                  
 Offsetting                                                                                                     
 Receipts:                                                                                                      
    On-budget......         BA       -39.8     -33.7     -34.2     -36.4     -35.5     -37.4     -36.8     -41.6
                            OT       -39.8     -33.7     -34.2     -36.4     -35.5     -37.4     -36.8     -41.6
    Off-budget.....         BA        -6.4      -6.8      -7.1      -7.6      -8.1      -8.7      -9.5     -10.3
                            OT        -6.4      -6.8      -7.1      -7.6      -8.1      -8.7      -9.5     -10.3
                    --------------------------------------------------------------------------------------------
      Total........         BA       -46.2     -40.5     -41.3     -44.0     -43.6     -46.1     -46.3     -51.8
                            OT       -46.2     -40.5     -41.3     -44.0     -43.6     -46.1     -46.3     -51.8
  Total Spending:                                                                                               
    On-budget......         BA      1260.9    1285.5    1324.3    1362.3    1396.9    1445.6    1476.3    1518.8
                            OT      1243.7    1288.1    1316.8    1338.2    1379.6    1426.5    1453.6    1492.6
    Off-budget.....         BA       292.6     306.2     321.2     329.4     345.1     356.4     371.8     387.7
                            OT       286.1     299.4     310.1     323.2     338.4     351.7     368.1     383.8
                    --------------------------------------------------------------------------------------------
      Total........         BA      1553.6    1591.7    1645.5    1691.7    1742.0    1802.0    1848.1    1906.5
                            OT      1529.9    1587.5    1626.9    1661.4    1718.0    1778.2    1821.7    1876.4
  Revenues:                                                                                                     
    On-budget......         --       997.8    1042.5    1082.7    1134.2    1186.7    1245.4    1313.4    1384.2
    Off-budget.....         --       357.4     374.7     392.0     411.4     430.9     452.0     475.2     498.6
                    --------------------------------------------------------------------------------------------
      Total........         --      1355.2    1417.2    1474.7    1545.6    1617.6    1697.4    1788.6    1882.8
  Deficit:                                                                                                      
    On-budget......         --      -245.9    -245.6    -234.1    -204.0    -192.9    -181.1    -140.2    -108.4
    Off-budget.....         --        71.3      75.3      81.9      88.2      92.5     100.3     107.1     114.8
                    --------------------------------------------------------------------------------------------
      Total........         --      -174.6    -170.3    -152.2    -115.8    -100.4     -80.8     -33.1       6.4
----------------------------------------------------------------------------------------------------------------


                               CONFERENCE AGREEMENT COMPARED TO CURRENT LAW LEVELS                              
                                              [Dollars in billions]                                             
----------------------------------------------------------------------------------------------------------------
                                    1996      1997      1998      1999      2000      2001      2002      Total 
----------------------------------------------------------------------------------------------------------------
050: National                                                                                                   
 Defense...........         BA        $9.7     $15.6     $10.7      $6.8      $2.8      $5.6      $8.5     $59.8
                            OT         5.7       8.2       7.7       9.3       9.4       8.6       8.6      57.6
150: International                                                                                              
 Affairs...........         BA        -2.1      -3.4      -4.6      -5.4      -5.7      -5.7      -5.7     -32.6
                            OT        -0.4      -1.7      -2.9      -3.9      -4.7      -4.8      -5.0     -23.4
250: Science, Space                                                                                             
 and Technology....         BA        -0.5      -0.9      -1.3      -1.6      -1.8      -1.8      -1.8      -9.7
                            OT        -0.1      -0.6      -1.0      -1.4      -1.7      -1.8      -1.8      -8.5
270: Energy........         BA        -1.0      -1.1      -1.5      -2.1      -2.1      -2.2      -2.2     -12.2
                            OT        -0.2      -0.5      -1.0      -1.7      -2.0      -2.0      -2.0      -9.3
300: Natural                                                                                                    
 Resources and                                                                                                  
 Environment.......         BA        -2.5      -2.8      -3.9      -3.3      -3.4      -3.8      -3.3     -22.9
                            OT        -1.1      -1.9      -3.2      -2.8      -3.1      -3.7      -3.2     -19.0
350: Agriculture...         BA        -1.4      -1.8      -2.4      -2.3      -2.7      -2.8      -3.0     -16.4
                            OT        -1.2      -1.7      -2.4      -2.3      -2.7      -2.8      -3.0     -16.1
  370: Commerce and                                                                                             
 Housing Credit:                                                                                                
    On-budget......         BA        -1.3      -1.5      -1.9      -2.2      -0.4      -1.7      -2.0     -11.0
                            OT        -0.9      -1.3      -1.8      -2.2      -0.5      -1.7      -2.0     -10.4
    Off-budget.....         BA    ........  ........  ........  ........  ........  ........  ........  ........
                            OT    ........  ........  ........  ........  ........  ........  ........  ........
                    --------------------------------------------------------------------------------------------
      Total........         BA        -1.3      -1.5      -1.9      -2.2      -0.4      -1.7      -2.0     -11.0
                            OT        -0.8      -1.3      -1.8      -2.2      -0.5      -1.7      -2.0     -10.4
400: Transportation         BA        -1.6      -1.5      -1.7      -4.0      -4.7      -5.2      -5.3     -24.1
                            OT        -0.7      -2.1      -3.1      -5.7      -6.8      -7.6      -8.0     -33.9
450: Community and                                                                                              
 Regional                                                                                                       
 Development.......         BA        -2.5      -2.6      -2.7      -2.7      -2.8      -2.8      -2.9     -19.0
                            OT        -0.4      -1.2      -2.0      -2.5      -2.7      -2.7      -2.7     -14.2
500: Education,                                                                                                 
 Training,                                                                                                      
 Employment and                                                                                                 
 Social Services...         BA        -8.8      -9.1      -9.7      -9.9     -10.0     -10.1     -10.2     -67.7
                            OT        -2.8      -7.5      -9.3      -9.8      -9.9     -10.0     -10.2     -59.4
550: Health........         BA        -5.7     -10.2     -18.6     -27.7     -37.0     -47.6     -58.6    -205.3
                            OT        -5.0     -10.2     -18.6     -27.7     -37.1     -47.6     -58.6    -204.6
570: Medicare......         BA        -8.0     -17.7     -26.6     -37.2     -49.2     -60.0     -71.4    -270.0
                            OT        -8.0     -17.7     -26.6     -37.2     -49.2     -60.0     -71.4    -270.0
600: Income                                                                                                     
 Security..........         BA        -2.2     -11.0      -3.5     -13.1     -11.9     -13.6     -16.3     -71.6
                            OT        -3.7     -10.8     -11.5     -12.7     -14.5     -16.7     -19.6     -89.5
  650: Social                                                                                                   
 Security:                                                                                                      
    On-budget......         BA    ........  ........  ........  ........  ........  ........  ........  ........
                            OT    ........  ........  ........  ........  ........  ........  ........  ........
    Off-budget.....         BA    ........  ........  ........  ........  ........  ........  ........  ........
                            OT    ........  ........  ........  ........  ........  ........  ........  ........
                    --------------------------------------------------------------------------------------------
      Total........         BA    ........  ........  ........  ........  ........  ........  ........  ........
                            OT    ........  ........  ........  ........  ........  ........  ........  ........
700: Veterans                                                                                                   
 Benefits..........         BA        -0.6      -0.7      -0.9      -1.6      -1.7      -1.8      -1.9      -9.3
                            OT        -0.3      -0.5      -0.7      -1.4      -1.7      -1.7      -1.9      -8.2
750: Administration                                                                                             
 of Justice........         BA         1.4       1.4       1.5       2.4       2.5       2.5       2.5      14.1
                            OT         0.5       0.7       1.2       1.8       2.4       2.4       2.4      11.3
800: General                                                                                                    
 Government........         BA        -0.8      -1.0      -1.1      -1.2      -1.3      -1.3      -1.3      -7.9
                            OT        -0.6      -0.8      -0.9      -1.1      -1.2      -1.3      -1.3      -7.2
  900: Net                                                                                                      
 Interest:                                                                                                      
    On-budget......         BA        -1.0      -3.8      -8.5     -15.1     -23.5     -34.1     -47.1    -133.1
                            OT        -1.0      -3.8      -8.5     -15.1     -23.5     -34.1     -47.1    -133.1
    Off-budget.....         BA    ........  ........  ........  ........  ........  ........  ........  ........
                            OT    ........  ........  ........  ........  ........  ........  ........  ........
                    --------------------------------------------------------------------------------------------
      Total........         BA        -1.0      -3.9      -8.6     -15.2     -23.7     -34.3     -47.3    -134.1
                            OT        -1.0      -3.9      -8.6     -15.2     -23.7     -34.3     -47.3    -134.1
920: Allowances....         BA        -6.4      -6.3      -5.3      -4.7      -3.7      -3.7      -3.7     -33.8
                            OT        -4.8      -6.4      -5.5      -5.0      -4.0      -4.0      -4.1     -33.8
  950:                                                                                                          
 Undistributed                                                                                                  
 Offsetting                                                                                                     
 Receipts:                                                                                                      
    On-budget......         BA        -2.4      -3.0      -4.4      -2.6      -2.6      -0.7      -4.1     -19.8
                            OT        -2.4      -3.0      -4.4      -2.6      -2.6      -0.7      -4.1     -19.8
    Off-budget.....         BA    ........  ........  ........  ........  ........  ........  ........  ........
                            OT    ........  ........  ........  ........  ........  ........  ........  ........
                    --------------------------------------------------------------------------------------------
      Total........         BA        -2.4      -3.0      -4.4      -2.6      -2.6      -0.7      -4.1     -19.8
                            OT        -2.4      -3.0      -4.4      -2.6      -2.6      -0.7      -4.1     -19.8
  Total Spending:                                                                                               
    On-budget......         BA       -37.9     -61.3     -86.4    -127.5    -159.4    -190.9    -230.0    -893.4
                            OT       -27.3     -62.7     -94.7    -124.1    -156.3    -192.4    -235.1    -892.6
    Off-budget.....         BA    ........  ........  ........  ........  ........  ........  ........  ........
                            OT    ........  ........  ........  ........  ........  ........  ........  ........
                    --------------------------------------------------------------------------------------------
      Total........         BA       -37.9     -61.3     -86.4    -127.5    -159.4    -190.9    -230.0    -893.4
                            OT       -27.3     -62.7     -94.7    -124.1    -156.3    -192.4    -235.1    -892.6
  Revenues:                                                                                                     
    On-budget......  ...........       0.1       0.1       0.2       0.2       0.2       0.2       0.2       1.1
    Off-budget.....  ...........  ........  ........  ........  ........  ........  ........  ........  ........
                    --------------------------------------------------------------------------------------------
      Total........  ...........       0.1       0.1       0.2       0.2       0.2       0.2       0.2       1.1
  Deficit/Surplus:                                                                                              
    On-budget......  ...........      27.4      62.8      94.8     124.3     156.5     192.6     235.3     893.7
    Off-budget.....  ...........  ........  ........  ........  ........  ........  ........  ........  ........
                    --------------------------------------------------------------------------------------------
      Total........  ...........      27.4      62.8      94.8     124.3     156.5     192.6     235.3     893.7
----------------------------------------------------------------------------------------------------------------


                                      CONFERENCE AGREEMENT COMPARED TO 1995                                     
                                              [Dollars in billions]                                             
----------------------------------------------------------------------------------------------------------------
                                    1996      1997      1998      1999      2000      2001      2002      Total 
----------------------------------------------------------------------------------------------------------------
050: National                                                                                                   
 Defense...........         BA        $3.3      $5.9      $7.6     $10.3     $13.0     $15.7     $18.6     $74.2
                            OT        -6.5      -4.6      -5.8      -2.4       1.3       0.4       0.4     -17.4
150: International                                                                                              
 Affairs...........         BA        -3.1      -4.9      -6.5      -7.7      -6.2      -6.0      -6.0     -40.4
                            OT        -1.8      -3.8      -5.0      -6.3      -7.0      -6.9      -7.1     -38.0
250: Science, Space                                                                                             
 and Technology....         BA        -0.5      -0.9      -1.2      -1.5      -1.8      -1.8      -1.8      -9.5
                            OT        -0.7      -0.9      -1.4      -1.8      -2.1      -2.1      -2.1     -11.3
270: Energy........         BA        -1.8      -2.2      -2.5      -2.8      -3.0      -3.0      -3.1     -18.3
                            OT        -0.4      -1.4      -1.8      -2.4      -2.7      -2.7      -2.8     -14.3
300: Natural                                                                                                    
 Resources and                                                                                                  
 Environment.......         BA        -2.8      -3.1      -4.6      -4.1      -4.4      -5.2      -4.8     -29.1
                            OT        -1.5      -1.8      -3.0      -2.7      -3.3      -4.3      -4.0     -20.6
350: Agriculture...         BA        -0.9      -1.5      -2.3      -2.5      -3.0      -4.2      -4.4     -18.7
                            OT        -0.9      -1.6      -2.2      -2.5      -3.0      -4.0      -4.2     -18.2
370: Commerce and                                                                                               
 Housing Credit:                                                                                                
    On-budget......         BA        -2.8      -3.6      -4.5      -5.0      -3.3      -4.6      -4.8     -28.5
                            OT         6.8       8.7       7.0       9.0      11.5      10.8      10.7      64.5
    Off-budget.....         BA         0.6       3.3      -2.3      -0.7      -3.7      -3.5      -3.5      -9.9
                            OT        -0.2      -1.0      -1.6      -0.3      -1.6      -0.2      -0.2      -5.1
                    --------------------------------------------------------------------------------------------
      Total........         BA        -2.2      -0.3      -6.8      -5.6      -7.0      -8.1      -8.4     -38.5
                            OT         6.6       7.6       5.4       8.7      10.0      10.6      10.5      59.4
400: Transportation         BA        -6.0       0.6       1.3       0.0       0.3      -0.3      -0.7      -4.6
                            OT        -0.4      -1.8      -2.7      -5.2      -6.1      -6.9      -7.4     -30.6
450: Community and                                                                                              
 Regional                                                                                                       
 Development.......         BA        -2.6      -2.7      -2.8      -2.8      -2.9      -3.4      -3.6     -20.8
                            OT        -1.7      -3.8      -5.1      -5.4      -5.4      -5.5      -5.5     -32.4
500: Education,                                                                                                 
 Training,                                                                                                      
 Employment and                                                                                                 
 Social Services...         BA        -9.9     -10.5     -10.7      -9.9      -9.2      -9.7      -9.5     -69.4
                            OT        -1.3      -5.8      -7.4      -7.2      -6.5      -7.1      -6.9     -42.3
550: Health........         BA         4.3      11.0      15.0      19.1      23.5      27.9      32.6     133.4
                            OT         5.4      11.8      15.9      20.0      24.1      28.6      33.2     138.9
570: Medicare......         BA        13.4      21.7      31.3      43.1      53.8      69.1      86.6     319.1
                            OT        12.7      21.7      31.3      42.1      53.6      68.7      85.9     315.9
600: Income                                                                                                     
 Security..........         BA         6.0      11.7      30.3      33.2      49.5      54.8      68.7     254.3
                            OT         5.4      14.2      23.1      33.6      47.7      52.4      66.0     242.3
650: Social                                                                                                     
 Security:                                                                                                      
    On-budget......         BA        -0.9       1.3       2.0       2.8       3.7       4.3       4.9      18.1
                            OT        -0.8       1.2       2.0       2.8       3.6       4.2       4.8      17.7
    Off-budget.....         BA        18.3      35.9      55.4      75.4      96.1     118.4     142.0     541.5
                            OT        18.8      35.6      55.0      74.8      95.7     117.9     141.2     538.9
                    --------------------------------------------------------------------------------------------
      Total........         BA        17.4      37.2      57.4      78.2      99.8     122.7     146.8     559.6
                            OT        17.9      36.8      56.9      77.5      99.4     122.1     146.0     556.6
700: Veterans                                                                                                   
 Benefits..........         BA        -0.1       0.2       0.6       1.2       1.4       2.0       2.5       7.9
                            OT        -0.5       0.6       1.0       1.6       3.2       3.9       4.4      14.3
750: Administration                                                                                             
 of Justice........         BA         1.3       1.3       1.6       2.5       2.6       2.2       2.1      13.6
                            OT         1.6       1.8       2.6       3.3       3.8       3.4       3.3      19.8
800: General                                                                                                    
 Government........         BA        -0.9      -1.0      -1.1      -1.1      -1.3      -1.6      -1.7      -8.7
                            OT        -0.5      -1.1      -1.1      -1.4      -1.4      -1.8      -1.9      -9.2
900: Net Interest:                                                                                              
    On-budget......         BA        28.5      40.6      49.5      61.6      73.0      80.0      87.7     421.0
                            OT        28.5      40.6      49.5      61.6      73.0      80.0      87.7     421.0
    Off-budget.....         BA        -4.9     -10.0     -15.1     -20.6     -26.4     -32.7     -39.4    -149.1
                            OT        -4.9     -10.0     -15.1     -20.6     -26.4     -32.7     -39.4    -149.0
                    --------------------------------------------------------------------------------------------
      Total........         BA        23.6      30.6      34.4      41.1      46.6      47.4      48.3     271.9
                            OT        23.6      30.6      34.4      41.1      46.6      47.4      48.3     272.0
920: Allowances....         BA        -6.4      -6.3      -5.3      -4.7      -3.7      -3.7      -3.7     -33.8
                            OT        -4.8      -6.4      -5.5      -5.0      -4.0      -4.0      -4.1     -33.8
950: Undistributed                                                                                              
 Offsetting                                                                                                     
 Receipts:                                                                                                      
    On-budget......         BA         6.1       5.6       3.4       4.3       2.4       3.0      -1.8      23.0
                            OT         6.1       5.6       3.4       4.3       2.4       3.0      -1.8      23.0
    Off-budget.....         BA        -0.4      -0.7      -1.1      -1.6      -2.3      -3.0      -3.8     -13.0
                            OT        -0.4      -0.7      -1.1      -1.6      -2.3      -3.0      -3.8     -13.0
                    --------------------------------------------------------------------------------------------
      Total........         BA         5.8       4.9       2.2       2.6       0.1      -0.0      -5.6      10.0
                            OT         5.8       4.9       2.2       2.6       0.1      -0.0      -5.6      10.0
Total Spending:                                                                                                 
    On-budget......         BA        24.4      63.4     101.3     135.9     184.6     215.3     257.8     982.9
                            OT        44.4      73.1      94.5     135.8     182.8     209.9     248.8     989.4
    Off-budget.....         BA        13.6      28.5      36.8      52.5      63.7      79.2      95.1     369.4
                            OT        13.3      23.9      37.1      52.2      65.5      82.0      97.7     371.7
                    --------------------------------------------------------------------------------------------
      Total........         BA        38.1      91.9     138.1     188.4     248.4     294.5     352.9    1352.3
                            OT        57.7      97.0     131.6     188.1     248.3     291.9     346.5    1361.1
Revenues:                                                                                                       
    On-budget......  ...........      44.8      84.9     136.4     189.0     247.6     315.6     386.4    1404.7
    Off-Budget.....  ...........      17.2      34.5      54.0      73.4      94.6     117.7     141.2     532.6
                    --------------------------------------------------------------------------------------------
      Total........  ...........      62.0     119.5     190.4     262.4     342.2     433.4     527.5    1937.4
----------------------------------------------------------------------------------------------------------------

Discretionary and mandatory spending levels
      The following tables show the discretionary and mandatory 
spending levels in the aggregate and by function included in 
the conference agreement.

                                   CONFERENCE AGREEMENT--DISCRETIONARY TOTALS                                   
                                              [Dollars in billions]                                             
----------------------------------------------------------------------------------------------------------------
                                    1995      1996      1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
050: National                                                                                                   
 Defense...........         BA      $262.3    $265.4    $268.0    $269.7    $272.4    $275.1    $277.8    $280.7
                            OT       270.3     264.0     265.7     264.5     267.9     271.6     270.8     270.8
150: International                                                                                              
 Affairs...........         BA        20.4      18.3      17.1      15.8      15.1      14.7      14.7      14.7
                            OT        21.1      20.7      19.2      17.7      16.5      15.6      15.5      15.3
250: Science, Space                                                                                             
 and Technology....         BA        17.1      16.7      16.3      15.9      15.6      15.3      15.3      15.3
                            OT        17.5      16.8      16.5      16.1      15.7      15.4      15.4      15.3
270: Energy........         BA         6.3       5.5       5.1       4.7       4.8       4.8       4.7       4.7
                            OT         6.6       6.4       5.6       5.2       5.1       5.0       4.9       4.8
300: Natural                                                                                                    
 Resources and                                                                                                  
 Environment.......         BA        22.0      19.1      18.8      18.5      18.4      18.3      18.4      18.4
                            OT        21.5      20.2      19.7      19.6      19.3      19.0      18.9      18.8
350: Agriculture...         BA         4.0       3.6       3.6       3.6       3.6       3.6       3.6       3.6
                            OT         4.2       3.8       3.7       3.6       3.6       3.6       3.6       3.6
370: Commerce and                                                                                               
 Housing Credit....         BA         3.3       2.3       1.9       1.6       1.4       3.2       1.8       1.5
                            OT         3.1       2.6       2.1       1.6       1.4       3.1       1.8       1.5
400: Transportation         BA        15.5      13.9      14.0      13.8      11.6      10.8      10.4      10.3
                            OT        38.9      38.4      37.1      36.1      33.6      32.7      31.9      31.5
450: Community and                                                                                              
 Regional                                                                                                       
 Development.......         BA         8.9       6.6       6.5       6.4       6.4       6.4       6.3       6.3
                            OT        11.6      10.3       7.9       7.1       6.7       6.5       6.5       6.5
500: Education,                                                                                                 
 Training,                                                                                                      
 Employment and                                                                                                 
 Social Services...         BA        42.0      36.0      35.9      35.6      35.6      35.6      35.6      35.6
                            OT        39.3      40.3      37.0      35.5      35.3      35.3      35.3      35.3
550: Health........         BA        22.8      20.9      20.7      20.5      20.1      19.9      19.6      19.3
                            OT        22.4      21.2      20.6      20.5      20.1      19.9      19.6      19.3
570: Medicare......         BA         3.0       3.0       3.0       3.0       3.0       3.0       3.0       3.0
                            OT         3.0       3.0       3.0       3.0       3.0       3.0       3.0       3.0
600: Income                                                                                                     
 Security..........         BA        34.0      35.2      34.0      43.5      36.0      39.4      39.4      39.5
                            OT        38.7      39.2      41.5      41.1      41.2      42.0      41.5      41.5
650: Social                                                                                                     
 Security..........         BA    ........  ........  ........  ........  ........  ........  ........  ........
                            OT         2.5       2.6       2.5       2.5       2.5       2.5       2.5       2.5
700: Veterans                                                                                                   
 Benefits..........         BA        18.3      18.0      18.0      18.0      17.9      17.9      17.9      17.9
                            OT        18.0      18.9      18.3      18.2      18.1      18.0      17.9      17.9
750: Administration                                                                                             
 of Justice........         BA        18.1      19.5      19.5      19.7      20.5      20.6      20.6      20.6
                            OT        16.8      18.4      18.7      19.3      20.0      20.5      20.5      20.5
800: General                                                                                                    
 Government........         BA        12.3      11.6      11.5      11.3      11.2      11.1      11.1      11.1
                            OT        12.4      12.0      11.5      11.5      11.1      11.0      11.0      11.0
920: Allowances....         BA    ........      -6.4      -6.3      -5.3      -4.7      -3.7      -3.7      -3.7
                            OT    ........      -4.8      -6.4      -5.5      -5.0      -4.0      -4.0      -4.1
                    --------------------------------------------------------------------------------------------
      Total                                                                                                     
       Discretionar                                                                                             
       y...........         BA       510.4     489.2     487.4     496.2     488.7     495.9     496.6     498.8
                            OT       547.9     534.0     524.1     517.5     516.1     520.5     516.4     515.1
Defense............         BA       262.3     265.4     268.0     269.7     272.4     275.1     277.8     280.7
                            OT       270.3     264.0     265.7     264.5     267.9     271.6     270.8     270.8
Nondefense.........         BA       248.1     223.8     219.5     226.5     216.3     220.8     218.8     218.1
                            OT       277.6     269.9     258.4     253.0     248.2     248.9     245.6     244.3
050: National                                                                                                   
 Defense...........         BA        -0.9      -0.7      -0.7      -0.7      -0.7      -0.7      -0.7      -0.8
                            OT        -0.7      -0.9      -0.7      -0.7      -0.7      -0.7      -0.7      -0.8
150: International                                                                                              
 Affairs...........         BA        -1.5      -2.5      -3.1      -3.4      -3.9      -2.0      -1.9      -1.9
                            OT        -2.3      -3.7      -4.1      -3.8      -3.9      -3.7      -3.5      -3.5
250: Science, Space                                                                                             
 and Technology....         BA         0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0
                            OT         0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0
270: Energy........         BA         0.0      -1.0      -0.9      -0.9      -1.3      -1.4      -1.4      -1.5
                            OT        -1.6      -1.9      -2.1      -2.1      -2.6      -2.8      -2.7      -2.7
300: Natural                                                                                                    
 Resources and                                                                                                  
 Environment.......         BA         0.3       0.4       0.4      -0.8      -0.2      -0.4      -1.3      -0.9
                            OT         0.2       0.1       0.3      -0.9      -0.3      -0.5      -1.5      -1.1
350: Agriculture...         BA        10.0       9.5       8.9       8.1       7.9       7.4       6.2       6.0
                            OT         8.5       8.0       7.5       6.8       6.6       6.1       5.1       4.9
370: Commerce and                                                                                               
 Housing Credit....         BA         5.6       4.3       6.7       0.6       1.9      -1.3      -1.0      -1.0
                            OT       -16.6      -9.5      -8.0      -9.7      -6.2      -6.6      -4.7      -4.6
400: Transportation         BA        27.1      22.7      29.1      30.0      31.0      32.0      31.8      31.5
                            OT         0.5       0.5       0.5       0.5       0.5       0.5       0.5       0.5
450: Community and                                                                                              
 Regional                                                                                                       
 Development.......         BA         0.3      -0.0      -0.0      -0.0      -0.0      -0.1      -0.6      -0.7
                            OT        -0.1      -0.3      -0.2      -0.6      -0.6      -0.3      -0.4      -0.4
500: Education,                                                                                                 
 Training,                                                                                                      
 Employment and                                                                                                 
 Social Services...         BA        16.3      12.4      11.9      12.1      12.8      13.6      13.0      13.2
                            OT        15.4      13.1      12.0      11.8      12.2      12.9      12.3      12.5
550: Health........         BA        93.8     100.0     106.9     111.2     115.6     120.2     124.9     129.9
                            OT        93.4     100.0     106.9     111.2     115.6     120.0     124.7     129.7
570: Medicare......         BA       159.6     173.1     181.3     191.0     202.7     213.5     228.8     246.2
                            OT       158.1     170.7     179.8     189.3     200.2     211.6     226.7     244.0
600: Income                                                                                                     
 Security..........         BA       185.9     190.7     197.6     206.8     217.1     230.1     235.4     249.2
                            OT       183.5     188.4     194.9     204.2     214.6     227.9     233.1     246.8
650: Social                                                                                                     
 Security..........         BA       336.9     354.3     374.0     394.3     415.0     436.7     459.6     483.7
                            OT       333.7     351.6     370.6     390.7     411.3     433.1     455.8     479.7
700: Veterans                                                                                                   
 Benefits..........         BA        19.3      19.5      19.9      20.3      20.9      21.2      21.8      22.3
                            OT        19.4      18.0      19.7      20.2      20.9      22.6      23.4      23.9
750: Administration                                                                                             
 of Justice........         BA         0.4       0.4       0.3       0.5       0.5       0.5       0.0      -0.0
                            OT         0.3       0.3       0.3       0.4       0.4       0.4       0.0      -0.0
800: General                                                                                                    
 Government........         BA         1.0       0.8       0.8       0.9       0.9       0.9       0.6       0.5
                            OT         1.0       0.9       0.7       0.8       0.9       1.0       0.6       0.6
900: Net Interest..         BA       235.4     258.9     266.0     269.7     276.4     281.9     282.7     283.6
                            OT       235.3     258.9     266.0     269.7     276.4     281.9     282.7     283.6
950: Undistributed                                                                                              
 Offsetting                                                                                                     
 Receipts..........         BA       -46.2     -40.5     -41.3     -44.0     -43.6     -46.1     -46.3     -51.8
                            OT       -46.2     -40.5     -41.3     -44.0     -43.6     -46.1     -46.3     -51.8
                    --------------------------------------------------------------------------------------------
      Total                                                                                                     
       Spending....         BA      1043.2    1102.4    1158.0    1195.5    1253.3    1306.0    1351.7    1407.7
                            OT       981.9    1053.7    1102.8    1144.0    1201.7    1257.6    1305.4    1361.3
----------------------------------------------------------------------------------------------------------------

Credit levels
      The following tables show the credit levels in the 
aggregate and by function included in the conference agreement.

                                CREDIT LEVELS IN CONFERENCE AGREEMENT BY FUNCTION                               
                                              [Dollars in billions]                                             
----------------------------------------------------------------------------------------------------------------
                                        1996       1997       1998       1999       2000       2001       2002  
----------------------------------------------------------------------------------------------------------------
  Function 050:                                                                                                 
    Direct loans...................        0.0        0.0        0.0        0.0        0.0        0.0        0.0
    Guaranteed loans...............        1.7        1.7        1.7        1.7        1.7        1.7        1.7
  Function 150:                                                                                                 
    Direct loans...................        5.7        5.7        5.7        5.7        5.7        5.7        5.7
    Guaranteed loans...............       18.3       18.3       18.3       18.3       18.3       18.3       18.3
  Function 270:                                                                                                 
    Direct loans...................        1.2        1.2        1.2        1.2        1.2        1.2        1.2
    Guaranteed loans...............        0.0        0.0        0.0        0.0        0.0        0.0        0.0
  Function 300:                                                                                                 
    Direct loans...................        0.1        0.1        0.1        0.1        0.1        0.1        0.1
    Guaranteed loans...............        0.0        0.0        0.0        0.0        0.0        0.0        0.0
  Function 350:                                                                                                 
    Direct loans...................       11.5       11.5       10.9       11.6       11.4       11.1       10.9
    Guaranteed loans...............        5.7        5.7        5.7        5.7        5.7        5.7        5.7
  Function 370:                                                                                                 
    Direct loans...................        1.4        1.4        1.4        1.4        1.4        1.4        1.4
    Guaranteed loans...............      123.1      123.1      123.1      123.1      123.1      123.1      123.1
  Function 400:                                                                                                 
    Direct loans...................        0.2        0.2        0.2        0.2        0.2        0.2        0.2
    Guaranteed loans...............        0.0        0.0        0.0        0.0        0.0        0.0        0.0
  Function 450:                                                                                                 
    Direct loans...................        2.7        2.7        2.7        2.7        2.7        2.7        2.7
    Guaranteed loans...............        1.2        1.2        1.2        1.2        1.2        1.2        1.2
  Function 500:                                                                                                 
    Direct loans...................       13.6       16.3       19.1       21.8       21.9       22.0       22.2
    Guaranteed loans...............       16.3       15.9       15.2       14.3       15.0       15.8       16.6
  Function 550:                                                                                                 
    Direct loans...................        0.0        0.0        0.0        0.0        0.0        0.0        0.0
    Guaranteed loans...............        0.3        0.3        0.3        0.3        0.3        0.3        0.3
  Function 600:                                                                                                 
    Direct loans...................        0.0        0.0        0.0        0.0        0.0        0.0        0.0
    Guaranteed loans...............        0.1        0.1        0.1        0.1        0.1        0.1        0.1
  Function 700:                                                                                                 
    Direct loans...................        1.2        1.1        1.0        1.0        1.2        1.4        1.7
    Guaranteed loans...............       26.7       21.6       19.7       18.6       19.3       19.9       20.6
                                    ----------------------------------------------------------------------------
  Grand total:                                                                                                  
      Direct loans.................       37.6       40.2       42.3       45.7       45.8       45.8       46.1
      Guaranteed loans.............      193.4      187.9      185.3      183.3      184.7      186.1      187.6
----------------------------------------------------------------------------------------------------------------

                             RECONCILIATION

(Sec. 4 of the House resolution, sec. 105 of the Senate amendment, and 
                 sec. 105 of the conference agreement)

      The following tables show the instructions to the various 
authorizing committees of the House and Senate pursuant to 
section 301(b)(2) and section 310 of the Congressional Budget 
Act. Those sections authorize the concurrent resolution on the 
budget to include reconciliation instructions to the various 
committees to implement the amounts and levels in that 
resolution. The reconciliation instructions in this concurrent 
resolution of the budget require the committees to report 
changes in law that, based on CBO and Budget Committee scoring, 
meet the specified targets in their instructions. Those 
legislative changes are to be reported to the appropriate 
Budget Committee by September 22, 1995.

              SENATE COMMITTEE RECONCILIATION INSTRUCTIONS              
                          [Dollars in millions]                         
------------------------------------------------------------------------
      Committee                        1996        5-Year       7-Year  
------------------------------------------------------------------------
Agriculture,                                                            
 Nutrition and                                                          
 Forestry...........         OT        -$2,503     -$29,059     -$48,402
Armed Services......         OT         -1,571       -1,888       -2,199
Banking, Housing and                                                    
 Urban Affairs......         OT           -481       -1,698       -2,391
Commerce, Science                                                       
 and Transportation.         OT           -114       -9,088      -15,036
Energy and Natural                                                      
 Resources..........         OT           -354       -4,292       -4,001
Environment and                                                         
 Public Works.......         OT           -118       -1,308       -2,250
Finance.............         OT        -15,328     -272,974     -530,359
Governmental Affairs         DR           -524       -5,357       -9,844
Judiciary...........         OT    ...........         -238         -476
Labor and Human                                                         
 Resources..........         OT           -809       -6,956      -10,779
Veterans' Affairs...         OT           -274       -3,614       -6,392
                     ---------------------------------------------------
    Total                                                               
     reconciliation                                                     
     instructions...         OT        -22,076     -336,472     -632,129
------------------------------------------------------------------------


                    RECONCILIATION BY HOUSE COMMITTEE                   
                        [In millions of dollars]                        
------------------------------------------------------------------------
                                                    1996 to     1996 to 
              Committee                   1996       2000        2002   
------------------------------------------------------------------------
Agriculture:                                                            
    Food stamps......................     26,748     133,246     192,270
    All other programs...............     10,506      44,741      59,232
Banking and Financial Services:                                         
 Direct spending.....................    -13,087     -50,061     -65,112
Commerce: Direct spending............    285,537   1,592,240   2,361,708
Economic & Educational Opportunities:                                   
    Direct spending..................     16,026      77,346     110,936
    Authorization....................       -720      -5,810      -8,770
Government Reform & Oversight:                                          
    Direct spending..................     57,743     310,364     449,583
    Deficit reduction................        -85        -775      -1,127
International Relations:                                                
    Direct spending..................     14,243      82,072      83,221
    Deficit reduction................         -1         -14         -22
Judiciary: Direct spending...........      2,580      13,734      19,530
National Security: Direct spending...     39,601     226,931     331,210
Resources: Direct spending...........      1,536       7,816      12,871
Transportation & Infrastructure:                                        
 Direct spending.....................     16,615      83,070     116,811
Veterans Affairs: Direct spending....     19,041     106,163     154,884
Ways & Means: Direct spending........    349,172   2,010,751   3,002,706
Offset to Multiple Jurisdictions:                                       
    Direct spending..................     -9,830    -140,151    -269,826
    Deficit reduction................          1          14          22
                                      ----------------------------------
  Total                                                                 
      Direct spending................    816,630   4,478,262   6,550,004
      Deficit reduction..............        -86        -875      -1,387
      Revenues.......................          0   1,304,215   7,938,254
                                      ----------------------------------
      Authorization..................       -720      -5,810      -8,770
Ways & Means Revenues................  .........   1,304,215   7,938,254
------------------------------------------------------------------------

       The conference agreement includes in the reconciliation 
directives an instruction to increase the statutory limit on 
the public debt. The conferees intend that the debt limit be 
enacted as separated legislation and not as part of 
reconciliation. However, if debt limit legislation has not been 
enacted this instruction would authorize the committees of 
jurisdiction to include the debt limit in the reconciliation 
bill.
      Because the goal of this resolution is to achieve a 
balanced budget in 2002 in a manner that generates economic 
dividends, the conferees discourage committees from attempting 
to meet their reconciliation instructions with changes that 
only appear to reduce the deficit (through timing changes or 
other artifices) rather than changes with real economic 
effects. For example, the 1993 budget reconciliation bill 
included a provision directing the Federal Reserve to transfer 
$213 million from its surplus capital account to the Treasury 
over 1997 and 1998. Because the Federal Reserve is not included 
in the unified budget, the slated transfer was counted as 
savings for reconciliation purposes even though there is 
general agreement that the transfer is a timing gimmick, acts 
like an intragovernmental transfer, and leaves the private 
sector and the rest of the economy unaffected. The 
Congressional Budget Office concurs with the conferees that 
such a transfer has no real economic impact on the deficit. 
Given this understanding, the conferees (using the authority 
provided to the budget committees for estimating outlays and 
revenues by section 310(d)(4) of the Congressional Budget Act) 
direct the Congressional Budget Office to not score any savings 
for any new legislation that might affect the Federal Reserve's 
transfer of the surplus capital account to the Treasury.

                      ALLOCATIONS AMONG COMMITTEES

      Sections 302(a) and 602(a) of the Congressional Budget 
Act of 1974 (the Budget Act) require the joint explanatory 
statement of managers accompanying the conference report on a 
concurrent resolution on the budget (the budget resolution) to 
include committee allocations, based on the amounts in the 
budget resolution as recommended in the conference report. 
These allocations allocate the appropriate level of total new 
budget authority, outlays, new entitlement authority (for the 
House only), and Social Security outlays (for the Senate only) 
in the budget resolution among each committee of the Senate and 
the House of Representatives that has jurisdiction over 
legislation providing those amounts.
      Section 602 further requires that the allocations include 
an allocation for the first fiscal year covered by the budget 
resolution (fiscal year 1996) and for the total of the first 
fiscal year and the four succeeding fiscal years covered by the 
budget resolution (fiscal years 1996 through 2000). These 
allocations form the basis for congressional enforcement of the 
budget resolution through points of order under the Budget Act. 
These allocations follow:

  SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO  
   SECTION 302 OF THE CONGRESSIONAL BUDGET ACT BUDGET YEAR TOTAL: 1996  
                        [In millions of dollars]                        
------------------------------------------------------------------------
                           Direct spending       Entitlements funded in 
                            jurisdiction          annual appropriations 
      Committee      ---------------------------------------------------
                         Budget                    Budget               
                       authority     Outlays     authority     Outlays  
------------------------------------------------------------------------
Appropriations......      772,349      807,374  ...........  ...........
Appropriations                                                          
 (Violent Crime                                                         
 Trust Fund)........        4,087        2,227  ...........  ...........
Agriculture,                                                            
 Nutrition, and                                                         
 Forestry...........        6,896        4,859       18,566        8,096
Armed Services......       40,159       39,806  ...........  ...........
Banking, Housing,                                                       
 and Urban Affairs..        4,143       -8,527  ...........  ...........
Commerce, Science,                                                      
 and Transportation.        2,619          -33          584          581
Energy and Natural                                                      
 Resources..........        1,121          951           48           37
Environment and                                                         
 Public Works.......       19,811        1,750  ...........  ...........
Finance.............      631,582      628,118      119,856      120,666
Foreign Relations...       13,926       14,093  ...........  ...........
Governmental Affairs       51,873       50,760  ...........  ...........
Judiciary...........        2,227        2,170          230          229
Labor and Human                                                         
 Resources..........        6,117        6,276        2,155        1,869
Rules and                                                               
 Administration.....           94          204  ...........  ...........
Veterans Affairs....        1,400        1,423       19,235       17,686
Select Indian                                                           
 Affairs............          409          378  ...........  ...........
Small Business......            3         -450  ...........  ...........
Not allocated to                                                        
 committees.........     -273,356     -263,279  ...........  ...........
                     ---------------------------------------------------
    Total...........    1,285,500    1,288,100      160,674      149,164
------------------------------------------------------------------------


  SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO  
 SECTION 302 OF THE CONGRESSIONAL BUDGET ACT FIVE-YEAR TOTAL: 1996-2000 
                        [In millions of dollars]                        
------------------------------------------------------------------------
                           Direct spending       Entitlements funded in 
                            jurisdiction          annual appropriations 
      Committee      ---------------------------------------------------
                         Budget                    Budget               
                       authority     Outlays     authority     Outlays  
------------------------------------------------------------------------
Agriculture,                                                            
 Nutrition, and                                                         
 Forestry...........       16,389        4,241       86,339       46,402
Armed Services......      228,914      227,993  ...........  ...........
Banking, Housing,                                                       
 and Urban Affairs..       21,890      -33,850  ...........  ...........
Commerce, Science,                                                      
 and Transportation.        5,389       -8,794        3,254        3,236
Energy and Natural                                                      
 Resources..........        4,490        4,179          228          232
Environment and                                                         
 Public Works.......      121,753        5,724  ...........  ...........
Finance.............    3,393,472    3,377,584      657,433      658,546
Foreign Relations...       57,253       61,166  ...........  ...........
Governmental Affairs      280,326      275,090  ...........  ...........
Judiciary...........       11,593       11,305        1,153        1,149
Labor and Human                                                         
 Resources..........       26,159       25,023       12,186       11,427
Rules and                                                               
 Administration.....          470          556  ...........  ...........
Veterans Affairs....        6,228        7,247      100,341       99,237
Select Indian                                                           
 Affairs............        2,149        1,987  ...........  ...........
Small Business......           12       -1,745  ...........  ...........
------------------------------------------------------------------------


    FISCAL YEAR 1996--ALLOCATION OF SPENDING RESPONSIBILITY TO HOUSE    
   COMMITTEES PURSUANT TO SEC. 602(a) OF THE CONGRESSIONAL BUDGET ACT   
                        [In millions of dollars]                        
------------------------------------------------------------------------
                                      Budget                 Entitlement
                                    authority     Outlays     authority 
------------------------------------------------------------------------
   HOUSE APPROPRIATIONS COMMITTEE                                       
  Current level (enacted law):                                          
    050  National Defense........          214          214           0 
    150  International Affairs...          169          169           0 
    300  Natural Resources and                                          
     Environment.................        2,094        1,947           0 
    350  Agriculture.............       11,967        1,530           0 
    370  Commerce and Housing                                           
     Credit......................           38          138           0 
    400  Transportation..........          584          581           0 
    500  Education, Training,                                           
     Employment, and Social                                             
     Services....................       11,298       11,243           0 
    550  Health..................      103,457      103,461           0 
    570  Medicare................       54,785       54,785           0 
    600  Income Security.........       53,673       54,192           0 
    650  Social Security.........           23           23           0 
    700  Veterans Benefits and                                          
     Services....................       19,346       17,783           0 
    750  Administration of                                              
     Justice.....................          411          409           0 
    800  General Government......        7,902        7,890           0 
    900  Net Interest............           15           15           0 
                                  --------------------------------------
      Subtotals..................      265,976      254,381           0 
                                  ======================================
   HOUSE APPROPRIATONS COMMITTEE                                        
                                                                        
  Discretionary appropriations                                          
 action (assumed legislation):                                          
    050  National Defense........      265,406      264,043           0 
    150  International Affairs...       18,292       20,718           0 
    250  General Science, Space,                                        
     and Technology..............       16,656       16,754           0 
    270  Energy..................        5,545        6,403           0 
    300  Natural Resources and                                          
     Environment.................       19,107       20,153           0 
    350  Agriculture.............        3,585        3,793           0 
    370  Commerce and Housing                                           
     Credit......................        2,333        2,575           0 
    400  Transportation..........       13,887       38,444           0 
    450  Community and Regional                                         
     Development.................        6,601       10,261           0 
    500  Education, Training,                                           
     Employment, and Social                                             
     Services....................       35,962       40,345           0 
    550  Health..................       20,943       21,164           0 
    570  Medicare................        2,992        2,992           0 
    600  Income Security.........       35,204       39,234           0 
    650  Social Security.........            0        2,574           0 
    700  Veterans Benefits and                                          
     Services....................       18,022       18,933           0 
    750  Administration of                                              
     Justice.....................       15,387       16,154           0 
    800  General Government......       11,581       12,033           0 
    920  Allowances..............       -6,429       -4,805           0 
                                  --------------------------------------
      Subtotals..................      485,074      531,768           0 
                                  ======================================
  Violent Crime Reduction Trust                                         
 Fund:                                                                  
    750  Administration of                                              
     Justice.....................        4,087        2,227           0 
  Discretionary action by other                                         
 committees (assumed entitlement                                        
 legislation):                                                          
    500  Education, training,                                           
     employment, and social                                             
     services....................       -1,686       -1,138           0 
    550  Health..................       -3,719       -3,719           0 
    600  Income security.........       20,197       20,200           0 
    700  Veterans benefits and                                          
     services....................         -208         -195           0 
    750  Administration of                                              
     justice.....................           -4           -4           0 
    800  General government......            4            4           0 
                                  --------------------------------------
      Subtotals..................       14,584       15,148           0 
      Committee totals...........      769,720      803,523           0 
                                  ======================================
    HOUSE AGRICULTURE COMMITTEE                                         
                                                                        
  Current level (enacted law):                                          
    150  International Affairs...         -474         -474           0 
    270  Energy..................            0         -645           0 
    300  Natural Resources and                                          
     Environment.................          471          483           0 
    350  Agriculture.............        9,041        7,636       8,896 
    400  Transportation..........           40           40           0 
    450  Community and Regional                                         
     Development.................          257          237           0 
    600  Income Security.........            0            0          11 
    800  General government......          251          250           0 
    900  Net Interest............            0            0          15 
                                  --------------------------------------
      Subtotals..................        9,585        7,527       8,922 
                                  ======================================
  Discretionary action (assumed                                         
 legislation):                                                          
    350  Agriculture.............         -992         -992        -992 
    600  Income Security.........            0            0       1,169 
                                  --------------------------------------
      Subtotals..................         -992         -992         177 
      Committee totals...........        8,593        6,535       9,099 
                                  ======================================
      HOUSE NATIONAL SECURITY                                           
            COMMITTEE                                                   
                                                                        
  Current level (enacted law):                                          
    050  National Defense........       12,592       12,355           0 
    300  Natural Resources and                                          
     Environment.................            3            2           0 
    400  Transportation..........            0           -5           0 
    500  Education, Training,                                           
     Employment, and Social                                             
     Services....................            4            3           0 
    600  Income Security.........       28,534       28,427           0 
    700  Veterans Benefits and                                          
     Services....................          197          190         190 
                                  --------------------------------------
    Subtotals....................       41,330       40,971         190 
                                  ======================================
  Discretionary action (assumed                                         
 legislation):                                                          
    600  Income security.........          382          382         382 
    950  Undistributed offsetting                                       
     receipts....................       -1,550       -1,550           0 
                                  --------------------------------------
      Subtotals..................       -1,168       -1,168         382 
      Committee totals...........       40,162       39,803         572 
                                  ======================================
    HOUSE BANKING AND FINANCIAL                                         
        SERVICES COMMITTEE                                              
                                                                        
  Current level (enacted law):                                          
    150  International Affairs...         -585       -1,930           0 
    370  Commerce and Housing                                           
     Credit......................          364       -9,258           0 
    450  Community and Regional                                         
     Development.................            5          -79           0 
    600  Income Security.........           50          100           0 
    800  General Government......            6          -27           0 
    900  Net Interest............        3,118        3,118           0 
                                  --------------------------------------
      Subtotals..................        2,959       -8,074           0 
                                  ======================================
  Discretionary action (assumed                                         
 legislation):                                                          
    370  Commerce and Housing                                           
     Credit......................         -210         -210           0 
    450  Community and Regional                                         
     Development.................         -271         -271           0 
                                  --------------------------------------
      Subtotals..................         -481         -481           0 
      Committee totals...........        2,478       -8,555           0 
                                  ======================================
   HOUSE ECONOMIC AND EDUCATIONAL                                       
     OPPORTUNITIES COMMITTEE                                            
                                                                        
  Current level (enacted law):                                          
    500  Education, Training,                                           
     Employment, and Social                                             
     Services....................        3,891        3,726       4,833 
    600  Income Security.........          153          143       9,575 
                                  --------------------------------------
      Subtotals..................        4,044        3,870      14,409 
                                  ======================================
  Discretionary action (assumed                                         
 legislation):                                                          
    500  Education, Training,                                           
     Employment, and Social                                             
     Services....................       -1,068         -723        -723 
    600  Income Security.........          940          845      -1,292 
                                  --------------------------------------
      Subtotals..................         -128          122      -2,015 
      Committee totals...........        3,916        3,992      12,394 
                                  ======================================
      HOUSE COMMERCE COMMITTEE                                          
                                                                        
  Current level (enacted law):                                          
    300  Natural Resources and                                          
     Environment.................            0            3           0 
    500  Education, Training,                                           
     Employment, and Social                                             
     Services....................            1            1           0 
    550  Health..................          496          489      99,517 
    800  General Government......            8            8           0 
                                  --------------------------------------
      Subtotals..................          506          501      99,517 
                                  ======================================
  Discretionary action (assumed                                         
 legislation):                                                          
    270  Energy..................            0          150           0 
    370  Commerce and Housing                                           
     Credit......................          -69          -69           0 
    550  Health..................          -86          -86      -3,619 
    950  Undistributed offsetting                                       
     receipts....................         -400         -400           0 
                                  --------------------------------------
      Subtotals..................         -555         -405      -3,619 
      Committee totals...........          -49           96      95,898 
                                  ======================================
   HOUSE INTERNATIONAL RELATIONS                                        
            COMMITTEE                                                   
                                                                        
  Current level (enacted law)                                           
    150  International Affairs...       13,416       13,580           0 
    400  Transportation..........            7           10           0 
    600  Income Security.........          506          506         494 
    800  General Government......            5            5           0 
                                  --------------------------------------
      Subtotals..................       13,933       14,100         494 
                                  ======================================
  Discretionary action (assumed                                         
 legislation):                                                          
    950  Undistributed offsetting                                       
     receipts....................           -3           -3           0 
                                  --------------------------------------
      Subtotals..................           -3           -3           0 
      Committee totals...........       13,930       14,097         494 
                                  ======================================
    HOUSE GOVERNMENT REFORM AND                                         
       OVERSIGHT COMMITTEE                                              
                                                                        
  Current level (enacted law):                                          
    550  Health..................            0          -44       3,818 
    600  Income Security.........       39,209       38,140      38,140 
    750  Administration of                                              
     Justice.....................           40           40          40 
    800  General Government......       12,870       12,870           0 
    900  Net Interest............           93           93           0 
                                  --------------------------------------
      Subtotals..................       52,212       51,099      41,998 
                                  ======================================
  Discretionary action (assumed                                         
 legislation):                                                          
    550  Health..................            0            0        -100 
    750  Administration of                                              
     Justice.....................            0            0          -4 
    800  General Government......         -100         -100          -2 
    950  Undistributed offsetting                                       
     receipts....................         -336         -336           0 
                                  --------------------------------------
      Subtotals..................         -436         -436        -106 
      Committee totals...........       51,776       50,663      41,892 
                                  ======================================
     HOUSE OVERSIGHT COMMITTEE                                          
                                                                        
  Current level (enacted law):                                          
    500  Education, Training,                                           
     Employment, and Social                                             
     Services....................           21           18           0 
    800  General Government......           72          186         275 
                                  --------------------------------------
      Subtotals..................           93          204         275 
      Committee totals...........           93          204         275 
                                  ======================================
     HOUSE RESOURCES COMMITTEE                                          
                                                                        
  Current level (enacted law):                                          
    270  Energy..................          -93         -377           0 
    300  Natural Resources and                                          
     Environment.................          772          700           0 
    370  Commerce and Housing                                           
     Credit......................           67           11           0 
    450  Community and Regional                                         
     Development.................          405          373           0 
    550  Health..................            5            5           0 
    800  General Government......          863          865         165 
                                  --------------------------------------
      Subtotals..................        2,018        1,577         165 
                                  ======================================
  Discretionary action (assumed                                         
 legislation):                                                          
    300  Natural Resources and                                          
     Environment.................          -29          -27           0 
    950  Undistributed offsetting                                       
     receipts....................          -77          -77           0 
                                  --------------------------------------
      Subtotals..................         -106         -104           0 
      Committee totals...........        1,912        1,473         165 
                                  ======================================
     HOUSE JUDICIARY COMMITTEE                                          
                                                                        
  Current level (enacted law):                                          
    370  Commerce and Housing                                           
     Credit......................          197          197           0 
    600  Income Security.........           62           18           9 
    750  Administration of                                              
     Justice.....................        1,451        1,439         233 
    800  General Government......          517          517           0 
                                  --------------------------------------
      Subtotals..................        2,227        2,170         242 
      Committee totals...........        2,227        2,170         242 
                                  ======================================
      HOUSE TRANSPORTATION AND                                          
     INFRASTRUCTURE COMMITTEE                                           
                                                                        
  Current level (enacted law):                                          
    270  Energy..................          943          820           0 
    300  Natural Resources and                                          
     Environment.................          417          361           0 
    400  Transportation..........       22,227           12         581 
    450  Community and Regional                                         
     Development.................            5          105           0 
    600  Income Security.........       14,795       14,774           0 
    800  General Government......           16           16           0 
                                  --------------------------------------
      Subtotals..................       38,403       16,088         581 
                                  ======================================
  Discretionary action (assumed                                         
 legislation):                                                          
    300  Natural Resources and                                          
     Environment.................           -6           -6           0 
    400  Transportation..........          -45          -45           0 
    450  Community and Regional                                         
     Development.................          -12          -12           0 
                                  --------------------------------------
      Subtotals..................          -63          -12           0 
      Committee totals...........       38,340       16,025         581 
                                  ======================================
      HOUSE SCIENCE COMMITTEE                                           
                                                                        
  Current level (enacted law):                                          
    250  General Science, Space,                                        
     and Technology..............           39           39           0 
    500  Education, Training,                                           
     Employment, and Social                                             
     Services....................            1            1           0 
                                  --------------------------------------
      Subtotals..................           40           40           0 
      Committee totals...........           40           40           0 
                                  ======================================
   HOUSE SMALL BUSINESS COMMITTEE                                       
                                                                        
  Current level (Enacted law):                                          
    370  Commerce and Housing                                           
     Credit......................            3         -164           0 
    450  Community and Regional                                         
     Development.................            0         -286           0 
                                  --------------------------------------
      Subtotals..................            3         -450           0 
      Committee totals...........            3         -450           0 
                                  ======================================
      HOUSE VETERANS' AFFAIRS                                           
            COMMITTEE                                                   
                                                                        
  Current level (enacted law):                                          
    700  Veterans Benefits and                                          
     Services....................        1,519        1,532      19,303 
                                  --------------------------------------
      Subtotals..................        1,519        1,532      19,303 
                                  ======================================
  Discretionary action (assumed                                         
 legislation):                                                          
    700  Veterans Benefits and                                          
     Services....................          -79          -79        -195 
                                  --------------------------------------
      Subtotals..................          -79          -79         195 
      Committee totals...........        1,440        1,453      19,108 
                                  ======================================
   HOUSE WAYS AND MEANS COMMITTEE                                       
                                                                        
  Current level (enacted law):                                          
    500  Education, Training,                                           
     Employment, and Social                                             
     Services....................            0            0       8,152 
    550  Health..................            0          -28           0 
    570  Medicare................      206,253      203,935     199,066 
    600  Income Security.........       43,611       42,484      36,916 
    650  Social Security.........        7,371        7,371           0 
    750  Administration of                                              
     Justice.....................          405          370           0 
    800  General Government......          540          534           0 
    900  Net Interest............      373,259      373,259     373,259 
                                  --------------------------------------
      Subtotals..................      631,438      627,926     617,393 
                                  ======================================
  Discretionary action (assumed                                         
 legislation):                                                          
    500  Education, Training,                                           
     Employment, and Social                                             
     Services....................            0            0      -1,138 
    570  Medicare................       -8,000       -8,000           0 
    600  Income Security.........        1,821        1,369      -2,380 
    900  Net Interest............         -984         -984        -984 
                                  --------------------------------------
      Subtotals..................       -7,163       -7,615      -4,502 
      Committee totals...........      624,275      620,311     612,891 
                                  ======================================
             UNASSIGNED                                                 
                                                                        
  Current level (enacted law):                                          
    050  National Defense........      -13,511      -13,512           0 
    150  International Affairs...      -15,018      -15,064           0 
    250  General Science, Space,                                        
     and Technology..............            5            8           0 
    270  Energy..................       -1,794       -1,850           0 
    300  Natural Resources and                                          
     Environment.................       -3,329       -3,315           0 
    350  Agriculture.............      -10,501         -167           0 
    370  Commerce and Housing                                           
     Credit......................         -123         -120           0 
    400  Transportation..........         -101         -137           0 
    450  Community and Regional                                         
     Development.................         -389         -428           0 
    500  Education, Training,                                           
     Employment, and Social                                             
     Services....................          -26          -77           0 
    550  Health..................          -96         -141           0 
    570  Medicare................      -79,930      -80,012           0 
    600  Income Security.........      -13,235      -13,214           0 
    650  Social Security.........       -1,494       -1,468           0 
    700  Veterans Benefits and                                          
     Services....................       -1,296       -1,263           0 
    750  Administration of                                              
     Justice.....................       -1,977       -1,935           0 
    800  General Government......      -22,439      -22,457           0 
    900  Net Interest............      -77,102      -77,102     -62,907 
    920  Allowances..............           29            5           0 
    950  Undistributed offsetting                                       
     receipts....................      -31,334      -31,334           0 
                                  --------------------------------------
      Subtotals..................     -273,663     -263,585     -62,907 
                                  ======================================
  Discretionary action (assumed                                         
 legislation):                                                          
    800  General Government......          306          306           0 
                                  --------------------------------------
      Subtotals..................          306          306           0 
      Committee totals...........     -273,357     -263,279     -62,907 
                                  ======================================
      Total--Current level.......      792,623      749,875     740,583 
      Total--Discretionary action      492,876      538,225      -9,878 
                                  --------------------------------------
        Grand totals.............    1,285,500    1,288,100     730,705 
------------------------------------------------------------------------


       ALLOCATION OF SPENDING RESPONSIBILITY TO HOUSE COMMITTEES PURSUANT TO SECTIONS 302(a)/602(a) OF THE      
                                            CONGRESSIONAL BUDGET ACT                                            
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                         1996        1997        1998        1999        2000      1996 to 2000 
----------------------------------------------------------------------------------------------------------------
       Appropriations Committee                                                                                 
  Current level:                                                                                                
    Budget authority................     265,976     290,731     312,480     340,215     375,556       1,584,958
    Outlays.........................     254,381     281,819     304,617     332,962     370,563       1,544,342
  Discretionary action:                                                                                         
    Defense:                                                                                                    
        Budget authority............     265,406     267,962     269,731     272,380     275,064       1,350,543
        Outlays.....................     264,043     265,734     264,531     267,883     271,571       1,333,762
    International:                                                                                              
        Budget authority............      18,292      17,081      15,780      15,100      14,733          80,986
        Outlays.....................      20,718      19,192      17,680      16,490      15,620          89,700
    Domestic:                                                                                                   
        Budget authority............     205,463     202,387     210,680     201,227     206,082       1,025,839
        Outlays.....................     249,234     239,216     235,322     231,747     233,268       1,188,786
        Subtotal:                                                                                               
        Budget authority............     489,161     487,430     496,192     488,707     495,879       2,457,369
        Outlays.....................     533,995     524,141     517,533     516,121     520,459       2,612,249
  Discretionary action by other                                                                                 
 committees:                                                                                                    
    Budget authority................      14,584       6,430         735      -8,551     -18,065          -4,867
    Outlays.........................      15,148       6,638         212      -8,644     -18,126          -4,772
    Committee total:                                                                                            
        Budget authority............     769,720     784,591     809,406     820,370     853,370       4,037,457
        Outlays.....................     803,523     812,599     822,361     840,439     872,896       4,151,818
         Agriculture Committee                                                                                  
  Current level (enacted law):                                                                                  
    Budget authority................       9,585       9,448       9,331       9,125       8,877          46,366
    Outlays.........................       7,527       7,121       7,092       6,747       6,504          34,991
  Discretionary action:                                                                                         
    Budget authority................        -992      -1,332      -1,960      -1,915      -2,278          -8,477
    Outlays.........................        -992      -1,332      -1,960      -1,915      -2,278          -8,477
    Committee total:                                                                                            
        Budget authority............       8,593       8,116       7,371       7,210       6,599          37,889
        Outlays.....................       6,535       5,789       5,132       4,832       4,226          26,514
New entitlement authority...........         177        -112        -696        -608        -925          -2,164
      National Security Committee                                                                               
  Current level (enacted law):                                                                                  
    Budget authority................      41,330      43,031      44,997      47,812      50,017         227,187
    Outlays.........................      40,971      42,825      44,864      47,640      49,840         226,140
  Discretionary action:                                                                                         
    Budget authority................      -1,168       1,119       1,120         354         308           1,733
    Outlays.........................      -1,168       1,119       1,120         354         308           1,733
    Committee total:                                                                                            
        Budget authority............      40,162      44,150      46,117      48,166      50,325         228,920
        Outlays.....................      39,803      43,944      45,984      47,994      50,148         227,873
New entitlement authority...........         382         642         650         -91        -116           1,467
    Banking and Financial Services                                                                              
              Committee                                                                                         
                                                                                                                
  Current level (enacted law):                                                                                  
    Budget authority................       2,959       2,345       1,767       1,265       1,447           9,783
    Outlays.........................      -8,074      -6,105      -7,441      -5,484      -4,782         -31,886
  Discretionary action:                                                                                         
    Budget authority................        -481        -284        -297        -311        -325          -1,698
    Outlays.........................        -481        -284        -297        -311        -325          -1,698
    Committee total                                                                                             
        Budget authority............       2,478       2,061       1,470         954       1,122           8,085
        Outlays.....................      -8,555      -6,389      -7,738      -5,795      -5,107         -33,584
                                                                                                                
    Economic Opportunity Committee                                                                              
                                                                                                                
  Current level (enacted law):                                                                                  
    Budget authority................       4,044       3,224       3,084       3,377       3,617          17,346
    Outlays.........................       3,870       3,067       2,726       2,898       3,133          15,694
  Discretionary action:                                                                                         
    Budget authority................        -128        -211        -406        -613        -618          -1,976
    Outlays.........................         122        -174        -334        -537        -611          -1,534
    Committee total:                                                                                            
    Budget authority................       3,916       3,013       2,678       2,764       2,999          15,370
    Outlays.........................       3,992       2,893       2,392       2,361       2,522          14,160
New entitlement authority...........      -2,015      -3,281      -2,056      -2,135      -1,978         -11,465
         Commerce Committee                                                                                     
  Current level (enacted law):                                                                                  
    Budget authority................         506         499         487         442         423           2,357
    Outlays.........................         501         495         484         441         422           2,343
  Discretionary action:                                                                                         
    Budget authority................        -555      -1,862      -2,466      -3,197      -3,301         -11,381
    Outlays.........................        -405      -1,854      -2,476      -3,285      -3,460         -11,480
    Committee total:                                                                                            
        Budget authority............         -49      -1,363      -1,979      -2,755      -2,878          -9,024
        Outlays.....................          96      -1,359      -1,992      -2,844      -3,038          -9,137
  New entitlement authority               -3,619      -7,886     -15,840     -24,361     -33,229         -84,935
                                                                                                                
   International Relations Committee                                                                            
                                                                                                                
  Current level (enacted law):                                                                                  
    Budget authority................      13,933      12,778      11,140       9,373      10,064          57,288
    Outlays.........................      14,100      13,440      12,359      10,922      10,380          61,201
  Discretionary action:                                                                                         
    Budget authority................          -3          -4          -4          -4          -4             -19
    Outlays.........................          -3          -4          -4          -4          -4             -19
    Committee total:                                                                                            
        Budget authority............      13,930      12,774      11,136       9,369      10,060          57,269
        Outlays.....................      14,097      13,436      12,355      10,918      10,376          61,182
New entitlement authority...........           0           0          -1          -2          -3              -6
    Government Reform and Oversight                                                                             
              Committee                                                                                         
  Current level (enacted law):                                                                                  
    Budget authority................      52,212      54,388      56,472      58,656      60,980         282,708
    Outlays.........................      51,099      53,381      55,541      57,652      59,799         277,472
  Discretionary action:                                                                                         
    Budget authority................        -436        -558        -580        -636        -693          -2,903
    Outlays.........................        -436        -558        -580        -636        -693          -2,903
    Committee total:                                                                                            
    Budget authority................      51,776      53,830      55,892      58,020      60,287         279,805
    Outlays.........................      50,663      52,823      54,961      57,016      59,106         274,569
New entitlement authority...........        -106        -227        -475        -759      -1,162          -2,729
          Oversight Committee                                                                                   
  Current level (enacted law):                                                                                  
    Budget authority................          93          93          93          94          95             468
    Outlays.........................         204          28          26          54         242             554
      Public Lands and Resources                                                                                
              Committee                                                                                         
  Current level (enacted law):                                                                                  
    Budget authority................       2,018       2,172       2,254       2,221       2,231          10,896
    Outlays.........................       1,577       1,765       2,230       2,296       2,282          10,150
  Discretionary action:                                                                                         
    Budget authority................        -106        -882      -2,564         428         426          -2,698
    Outlays.........................        -104        -881      -2,563         428         427          -2,693
    Committee total:                                                                                            
    Budget authority................       1,912       1,290        -310       2,649       2,657           8,198
    Outlays.........................       1,473         884        -333       2,724       2,709           7,457
          Judiciary Committee                                                                                   
  Current level (enacted law):                                                                                  
    Budget authority................       2,227       2,320       2,330       2,425       2,529          11,831
    Outlays.........................       2,170       2,264       2,273       2,367       2,469          11,543
  Discretionary action:                                                                                         
    Budget authority................           0           0           0        -119        -119            -238
    Outlays.........................           0           0           0        -119        -119            -238
    Committee total:                                                                                            
    Budget authority................       2,227       2,320       2,330       2,306       2,410          11,593
    Outlays.........................       2,170       2,264       2,273       2,248       2,350          11,305
   Transportation and Infrastructure                                                                            
              Committee                                                                                         
  Current level (enacted law):                                                                                  
    Budget authority................      38,403      42,369      16,419      16,658      16,752         130,601
    Outlays.........................      16,088      15,858      15,906      16,109      16,291          80,252
  Discretionary action:                                                                                         
    Budget authority................         -63       2,218      29,295      30,215      31,179          92,844
    Outlays.........................         -63         -71         -73        -124        -126            -457
    Committee total:                                                                                            
    Budget authority................      38,340      44,588      45,714      46,873      47,931         223,446
    Outlays.........................      16,025      15,787      15,833      15,985      16,165          79,795
           Science Committee                                                                                    
  Current level (enacted law):                                                                                  
    Budget authority................          40          41          41          41          41             204
    Outlays.........................          40          41          41          41          41             204
       Small Business Committee                                                                                 
  Current level (enacted law):                                                                                  
    Budget authority................           3           3           2           2           2              12
    Outlays.........................        -450        -170        -526        -452        -147          -1,745
      Veterans' Affairs Committee                                                                               
  Current level (enacted law):                                                                                  
    Budget authority................       1,519       1,450       1,389       1,315       1,241           6,914
    Outlays.........................       1,532       1,538       1,559       1,568       1,473           7,670
  Discretionary action:                                                                                         
    Budget authority................         -79         -82        -169        -175        -181            -686
    Outlays.........................         -79         -82        -169        -175        -181            -686
    Committee total:                                                                                            
        Budget authority............       1,440       1,368       1,220       1,140       1,060           6,228
        Outlays.....................       1,453       1,456       1,390       1,393       1,292           6,984
New entitlement authority...........        -195        -265        -323        -988      -1,157          -2,928
       Ways and Means Committee                                                                                 
  Current level (enacted law):                                                                                  
    Budget authority................     631,438     669,276     707,615     754,639     802,487       3,565,455
    Outlays.........................     627,926     666,305     704,666     750,789     799,709       3,549,395
  Discretionary action:                                                                                         
    Budget authority................      -7,163     -22,273     -36,432     -53,445     -73,586        -192,899
    Outlays.........................      -7,615     -22,270     -36,458     -53,433     -73,569        -193,345
    Committee total:                                                                                            
        Budget authority............     624,275     647,003     671,183     701,194     728,901       3,372,556
        Outlays.....................     620,311     644,035     668,208     697,356     726,140       3,356,050
       New Entitlement Authority          -4,502      -9,505     -14,956     -22,376     -31,556         -82,895
        Unassigned to Committee                                                                                 
  Current level (enacted law):                                                                                  
    Budget authority................    -273,663    -280,148    -291,012    -302,806    -321,143      -1,468,772
    Outlays.........................    -263,585    -271,832    -283,116    -295,979    -315,185      -1,429,697
  Discretionary action:                                                                                         
    Budget authority................         306         569         946       1,308       1,763           4,892
    Outlays.........................         306         569         946       1,308       1,763           4,892
    Committee total:                                                                                            
        Budget authority............    -273,357    -279,579    -290,065    -301,497    -319,380      -1,463,878
        Outlays.....................    -263,279    -271,264    -282,169    -294,671    -313,422      -1,424,805
  Total current level:                                                                                          
    Budget authority................     792,623     854,021     878,891     944,854   1,015,216       4,485,605
    Outlays.........................     749,875     811,843     863,304     930,572   1,003,035       4,358,629
  Total discretionary action:                                                                                   
    Budget authority................     492,876     470,278     483,409     452,046     430,384       2,328,993
    Outlays.........................     538,225     504,957     474,897     449,028     423,465       2,390,572
    Grand totals:                                                                                               
        Budget authority............   1,285,500   1,324,300   1,362,300   1,396,900   1,445,600       6,814,600
        Outlays.....................   1,288,100   1,316,800   1,338,200   1,379,600   1,426,500       6,749,200
      Total new entitlement                                                                                     
       authority....................      -9,878     -20,634     -33,697     -51,319     -70,126        -185,654
----------------------------------------------------------------------------------------------------------------

                          ECONOMIC ASSUMPTIONS

      Section 301(g)(2) of the Congressional Budget Act 
requires the joint explanatory statement accompanying a 
conference report on a budget resolution to set forth the 
common economic assumptions upon which the joint statement and 
conference report are based. The conference agreement is based 
on the economic forecast and projections prepared by the 
Congressional Budget Office, adjusted for anticipated revisions 
to the consumer price index (CPI) beginning in 1998.
House resolution
      The House budget resolution assumed that beginning in 
1999, the CPI growth projection is revised by 0.6 percentage 
points a year compared to CBO's assumptions published in its 
January economic and budget report. CBO's new assessment that 
the planned 1998 benchmark revision of the CPI by the Bureau of 
Labor Statistics will lower CPI growth explains 0.2 percentage 
points of the revision. An assumption that fully funding 
proposed research will remove upward biases in the CPI 
amounting to 0.4 percentage points accounts for the remaining 
revision to the CPI.
Senate amendment
      The Senate amendment assumed that CPI growth would be 
corrected by 0.2 percentage points from CBO's January 
assumptions beginning in 1998 when the benchmark revisions are 
completed. The revision reflects CBO's assessment of the impact 
of the benchmark revision that CBO did not consider previously.
Conference agreement
      The conference agreement assumes the Senate amendment.

                                              ECONOMIC PROJECTIONS                                              
                                                [Calendar Years]                                                
----------------------------------------------------------------------------------------------------------------
                                                                         Projected                              
                                  Actual -----------------------------------------------------------------------
                                   1994     1995     1996     1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
Nominal GDP [Billions of                                                                                        
 dollars.......................    6,735    7,127    7,456    7,847    8,256    8,680    9,128    9,604   10,105
  Percent change, year over                                                                                     
 year:                                                                                                          
    Real DP....................      4.1      3.1      1.8      2.4      2.3      2.3      2.3      2.3      2.3
    Implicit GDP deflator......      2.1      2.6      2.8      2.8      2.8      2.8      2.8      2.8      2.8
    CPI-U......................      2.6      3.1      3.4      3.4      3.2      3.2      3.2      3.2      3.2
  Percent, annual:                                                                                              
    Unemployment rate..........      6.1      5.5      5.7      5.8      5.9      6.0      6.0      6.6      6.0
    Three-month Treasury bill                                                                                   
     rate......................      4.2      6.2      5.7      5.3      5.1      5.1      5.1      5.1      5.1
    Ten-year Treasury note rate      7.1      7.7      7.0      6.7      6.7      6.7      6.7      6.7      6.7
----------------------------------------------------------------------------------------------------------------

                         Function and Revenues

(Secs. 2 and 3 of the House resolution, Secs. 101 and 104 of the Senate 
     amendment, and Secs. 101 and 104 of the conference agreement)

                     Function 050: National Defense

      The House budget resolution provides $2.0 trillion in 
budget authority and $1.9 trillion in outlays over seven years. 
The Senate amendment provides $1.9 trillion in budget authority 
and $1.8 trillion in outlays over seven years. The conference 
agreement provides $1.9 trillion in budget authority and $1.9 
trillion in outlays over seven years.
House resolution
      The House resolution adds $9.6 billion in budget 
authority and $4.0 billion in outlays to the Administration's 
request for 1996. The House resolution assumes that most of the 
increase is for Procurement and Research, Development, Test and 
Evaluation activities within the Department of Defense. After 
1996, the House resolution assumes that national defense budget 
authority would grow at about one percent in 1997, three 
percent in 1998, one percent in 1999, two percent in 2000, and 
then stay at that level through 2002.
      The House resolution adds $69.7 billion to the 
Administration's requested budget authority over five years and 
$92.4 billion over seven years.
      The House resolution assumes a 10 percent reduction in 
the civilian workforce of the Department of Defense beyond 
reductions already planned.
      The House resolution assumes no changes to mandatory 
spending in Function 050.
Senate amendment
      The Senate amendment assumes the President's budget 
submission for national defense.
      The Senate amendment includes seven-year firewalls 
between defense and non-defense discretionary spending.
      The Senate amendment assumes no changes to mandatory 
spending in Function 050.
Conference agreement
      The conference agreement adds $6.0 billion in budget 
authority and $2.0 billion in outlays to the Administration's 
request for 1996. Most of the increase is assumed to be for the 
procurement of weapons and for research and development 
activities of the Department of Defense. After 1996, the 
conference agreement would have national defense budget 
authority grow at a rate of one percent each year through the 
year 2002. Outlay calculations are based upon budget authority 
increases to the Administration's budget request. For the 
period 1997 through 2001, budget authority increases are 
assumed to be equally split between procurement and operations 
and maintenance. In the year 2002 the budget authority increase 
is assumed to be for procurement.
      The conference agreement adds $32.2 billion to the 
Administration's requested budget authority over five years and 
$39.5 billion over seven years. Conceptually, the agreement 
does three things. First, it ends the decline in defense 
spending with last year's budget. Second, it ``fills the 
trough'' of Administration's defense spending plan for the 
period 1996 through 1998 by providing $28.3 billion more than 
requested. Finally, it provides a steady and increasing stream 
of budget authority with which the Department of Defense can 
plan for the future.
      In providing additional defense funds, the conferees were 
most persuaded by two programmatic arguments. First, the 
President's program is underfunded. The Congressional Budget 
Office estimates that defense costs will rise by more than $25 
billion over the 1997 through 2000 period for: congressionally 
mandated military pay raises and locality pay adjustments; 
weapons systems cost growth; un-realized base closure savings; 
and contingency operations. These costs could more than double 
if weapons systems costs and environmental clean-up costs are 
higher than anticipated.
      Second, additional defense funds lessen the need for 
decisionmakers to sacrifice future readiness to meet current 
readiness requirements. In particular, additional defense 
funds, in the next few years, can be used to reverse the 60 
percent decline in procurement spending since 1985, and the $13 
billion backlog in real property maintenance. The real property 
backlog has resulted in more than a quarter of military housing 
falling into substandard condition. Problems include asbestos, 
corroded pipes, poor ventilation, faulty heating and cooling 
systems, and lead-based paint. Reversing these trends without 
additional funds will result in cancellation of training, 
postponement of required maintenance, and troops and families 
having to continue to live in substandard housing.
      Within the funds provided for national defense, the 
conferees feel that savings can be achieved. The conferees 
believe that the defense authorizing and appropriations 
committees should realize savings wherever possible. These 
savings should include a reduction of at least three percent in 
the overhead of fiscal year 1996 programs of defense agencies, 
in a manner so as not to reduce funding for the programmatic 
activities of these agencies.
      The conference agreement includes three-year firewalls 
between defense and non-defense discretionary spending, 
applicable in both Houses.

                  Function 150: International Affairs

      The House budget resolution provides $85.0 billion in 
budget authority and $88.7 billion in outlays over seven years. 
The Senate amendment provides $98.4 billion in budget authority 
and $99.5 billion in outlays over seven years. The conference 
agreement provides $91.7 billion in budget authority and $94.3 
billion in outlays over seven years.
House resolution
      The House agreed to restructure the various foreign 
affairs activities by consolidating the Agency for 
International Development, the U.S. Information Agency, and the 
Arms Control and Disarmament Agency into the Department of 
State. In addition, significant reductions--or in some cases 
outright eliminations--were assumed in development assistance, 
educational and cultural exchanges, overseas broadcasting, 
multilateral banks, PL 480, export financing and trade 
promotion, and international organizations.
Senate amendment
      Senate amendment assumes consolidations of programs and 
structure within the Agency for International Development and 
the U.S. Information Agency and leaves room for their 
incorporation into the Department of State. The Arms Control 
and Disarmament Agency is assumed to be incorporated into the 
Department of State. In other areas, the Senate amendment makes 
similar assumptions as the House for discretionary spending in 
Function 150, although total Senate reductions are not as steep 
after 1996.
Conference agreement
      The conference agreement endorses the notion that the 
entire foreign affairs apparatus of the United States needs to 
be completely reassessed and restructured. The House has 
already considered and the Senate will soon consider 
legislation that begins that process. The conference agreement 
recognizes that changes are required in the Department of 
State, U.S. Agency for International Development, the Arms 
Control and Disarmament Agency, the U.S. Information Agency, 
various multilateral development banks and international 
organizations, and numerous miscellaneous foreign affairs 
activities.

              Function 250: Science, Space, and Technology

      The House budget resolution provides $108.5 billion in 
budget authority and $109.6 billion in outlays over seven 
years. The Senate amendment provides $112.5 billion in budget 
authority and $113.3 billion in outlays over seven years. The 
conference agreement provides $110.4 billion in budget 
authority and $111.5 billion in outlays over seven years.
House resolution
      The House agreed to prioritize basic research at the 
National Science Foundation (NSF) and emphasize National 
Aeronautics and Space Administration's (NASA) core missions. 
Specifically, the House would increase NSF civilian research 
and related activities (except social, behavioral and economic 
studies) by three percent annually. In addition, the House 
would implement NASA management and operational reforms and 
provide sufficient funds to complete the space station. For 
high energy and nuclear physics, the House would reemphasize 
basic research and decommission outmoded facilities.
      Budget savings as a result of these changes are estimated 
to be $11.6 billion in budget authority and $10.3 billion in 
outlays over seven years.
Senate amendment
      The Senate amendment assumes NSF refocussing on its 
original mission of basic scientific research. As with the 
House, academic research and infrastructure is maintained at 
the level proposed in the President's Budget.
      The Senate amendment assumes the President's proposal to 
streamline NASA through contract management and operational 
reforms and assumes the President's freeze and reduction for 
DOE in the outyears.
Conference agreement
      While function 250 must contribute to deficit reduction, 
the conference agreement recognizes it must also provide for 
future research opportunities. Consequently, it assumes that 
basic research will be a priority.
      Relative to the House resolution, the conference 
agreement provides approximately $2 billion in additional funds 
over seven years. The conferees focused on NASA and NSF as 
candidates for this restored funding.

                          Function 270: Energy

      The House budget resolution provides $26.4 billion in 
budget authority and $20.9 billion in outlays over seven years. 
The Senate amendment provides $24.3 billion in budget authority 
and $18.2 billion in outlays over seven years. The conference 
agreement provides $26.2 billion in budget authority and $20.3 
billion in outlays over seven years.
House resolution
      The House resolution assumes the termination of the 
Department of Energy (DOE) as one of three Cabinet-level 
Departments proposed for termination.
      For discretionary spending, the House resolution 
eliminates funding for applied energy research and development, 
saving $13.6 billion in budget authority and $10.9 billion in 
outlays over seven years. The House assumes the expedited 
construction of an interim storage facility to store spent 
nuclear fuel and the termination of DOE's program to develop a 
deep repository for high level nuclear waste, saving $2.0 
billion over seven years. Reductions are made in unnecessary 
overhead and bureaucracy, saving $0.4 billion during the 
period.
      For mandatory spending, the House resolution proposes to 
sell or otherwise transfer out of the Federal government some 
$7.8 billion in assets. These include four power marketing 
administrations (Alaska, Southeastern, Southwestern and 
Western, expected to generate $4.2 billion in asset sales 
receipts), the U.S. Enrichment Corporation, and the Naval 
petroleum reserves.
Senate amendment
      The Senate amendment does not assume the termination of 
the Department of Energy.
      The Senate amendment makes similar assumptions as the 
House for discretionary spending with the following exceptions. 
The Senate does not assume elimination of funding for applied 
research. The Senate would reduce corporate subsidies for 
fossil, nuclear, solar, and conservation technologies by $5.6 
billion in budget authority and $4.9 billion in outlays over 
seven years. Unlike the House, the Senate does not assume the 
termination of the Department of Energy's high level nuclear 
waste deep repository program. The Senate amendment assumes 
$2.4 billion in budget authority and $2.1 billion in outlay 
savings over seven years by consolidating, streamlining, and 
realigning DOE activities.
      Mandatory savings appear larger in the Senate amendment 
because the Senate displays the proceeds from asset sales as 
offsetting receipts in this function. The Senate-reported 
resolution assumes net mandatory savings of $77 million in 
1996, $779 million for the period 1996 through 2000, and $167 
million for the period 1996-2002 from the sale of power 
marketing administration (PMA) assets. However, during floor 
consideration, the Senate adopted a sense of the Senate 
provision stating that these savings should be achieved from 
other unspecified mandatory programs in this function. The 
Senate amendment also assumes the sale of 62 million barrels of 
oil stored at the Weeks Island strategic petroleum reserve 
facility, which must be decommissioned, generating a total of 
$900 million in offsetting receipts and the extension of the 
requirement that the Nuclear Regulatory Commission (NRC) 
collect fees equal to 100 percent of its budget.
Conference agreement
       The conferees agree to disagree on the future status of 
the Department of Energy. They recognize that ultimately the 
committees of jurisdiction will determine whether the 
Department is terminated.
       The conference agreement resolves the differences for 
DOE discretionary funding by assuming a total reduction of 
$13.5 billion in budget authority and $10.4 billion in outlays 
over seven years through the following reforms: reductions in 
corporate technology subsidies for fossil and energy supply 
research and development accounts; reductions in energy 
conservation programs, including grants; and through the 
elimination of unnecessary bureaucracy and overhead. The 
conference agreement also assumes the extension of NRC fees and 
that these fees will continue to offset NRC appropriations for 
the period from 1999 through 2002. The conference agreement 
assumes the sale of the United States Enrichment Corporation 
and the naval petroleum reserves, but the gross proceeds from 
the sale of these assets are displayed in function 950, 
undistributed offsetting receipts. Other assumptions for energy 
asset sales are discussed in function 950.

                    Function 300: Natural Resources

       The House budget resolution provides $127.3 billion in 
budget authority and $131.1 billion in outlays over seven 
years. The Senate amendment provides $116.6 billion in budget 
authority and $126.4 billion in outlays over seven years. The 
conference agreement provides $127.1 billion in budget 
authority and $131.6 billion in outlays over seven years.
House resolution
       The House agreed to refocus the National Oceanic and 
Atmospheric Administration (NOAA) on its core mission as part 
of terminating the Department of Commerce (see Function 370), 
fund wastewater treatment at $2.3 billion, open a small portion 
of the Arctic National Wildlife Refuge (ANWR) for exploration, 
dissolve the National Biological Service, implement a land 
moratorium for the various land management agencies, and reform 
the various land management agencies. In addition it would 
apply a cost-benefit test to superfund projects, terminate 
helium production, and eliminate unneeded bureaucracy in the 
Department of the Interior. Finally, it would accept the 
President's proposal to reduce funding for the agriculture 
conservation program and terminate the Environmental Protection 
Agency's environmental technology initiative.
Senate amendment
      The Senate amendment assumes a five percent reduction for 
the NOAA, includes the privatization of specialized weather 
services and accepts the President's request for construction. 
These proposals would save $0.8 billion in outlays over seven 
years.
       The Senate assumes the phase-out of water infrastructure 
grants over three years which saves $10.0 billion over seven 
years. The Senate budget resolution accepts most of the 
Administration's reductions for the Army Corp of Engineers and 
the Bureau of Reclamation which reduces outlays by $1.8 billion 
over seven years. The Senate budget resolution assumes the 
reform of the various land management agencies.
       For mandatory spending, the Senate amendment assumes the 
lease of approximately eight percent of the 19 million acre 
ANWR as also proposed by the House. The Senate amendment also 
assumes the sale or other saving proposals for the Presidio in 
the City of San Francisco.
Conference agreement
       The conference agreement accepts the House reduction in 
1996 for water infrastructure state revolving funds. The 
conference agreement assumes a reduction of $1.9 billion in 
outlays over seven years for the operations of the land 
management agencies of the Departments of the Interior and 
Agriculture. The Administration proposed a five percent 
reduction for National Park Service (NPS) operations and an 11 
percent reduction for NPS construction by 2000. The conference 
agreement assumes a five percent reduction for the NPS and 
assumes no national park closures. The conference agreement 
also assumes the House reductions for NOAA.
       For mandatory programs, the conference agreement assumes 
the lease of ANWR. The conference agreement does not assume the 
sale of the Presidio or other changes. Nevertheless, reforms 
should take place that would minimize Federal costs and not 
increase the Federal deficit or debt of the Federal Government. 
The Presidio is the most expensive national park to operate 
with annual costs of approximately $25 million. The funding 
requirements for the Presidio are equivalent to the amounts 
needed to operate 88 of the smallest parks in the National Park 
System.

                       Function 350: Agriculture

       The House budget resolution provides $75.2 billion in 
budget authority and $66.9 billion in outlays over seven years. 
The Senate amendment provides $81.1 billion in budget authority 
and $72.9 billion in outlays over seven years. The conference 
agreement provides $79.1 billion in budget authority and $70.7 
billion in outlays over seven years.
House resolution
       The House agreed to refocus Federal support for 
agricultural research and extension activities, saving $1.9 
billion over seven years. The resolution also called for 
reforming mandatory agricultural production programs, saving 
$17 billion in outlays over seven years.
Senate amendment
      The Senate amendment makes similar assumptions as the 
House for agriculture research and extension activities. The 
Senate assumes a 10 percent reduction in funding for the 
Agricultural Research Service (ARS) and the Cooperative State 
Research Education and Extension Service (CSREES), accepts the 
Clinton Administration's funding request for ARS and CSREES 
buildings and facilities and accepts the Administration's 
request for CSREES special research grants. These proposals 
would save $1.4 billion in outlays over seven years.
       For mandatory programs, the Senate assumes spending 
reductions of $11.8 billion over seven years which can be 
accommodated under the 1995 farm bill when reauthorized.
Conference agreement
       The conference agreement assumes a reduction in 
agricultural research and extension activities and accepts the 
President's request for ARS and CSREES buildings and 
facilities. For mandatory programs, the conference agreement 
assumes spending reductions of $13.4 billion in budget 
authority and outlays over seven years.

               Function 370: Commerce and Housing Credit

       The House budget resolution provides $30.4 billion in 
budget authority and -$28.4 billion in outlays over seven 
years. The Senate amendment provides $21.9 billion in budget 
authority and -$37.4 billion in outlays over seven years. The 
conference agreement provides $24.0 billion in budget authority 
and -$35.3 billion in outlays over seven years.
House resolution
       The House assumes elimination of the Department of 
Commerce--one of three cabinet agencies slated for termination 
by the House--with critical functions being transferred to more 
appropriate agencies. This would save approximately $5 billion 
from function 370 over seven years. The House also proposes to 
budget $7.2 billion in function 370 for the Administration's 
proposal to ``mark to market'' multifamily housing mortgages 
insured by the Federal Housing Administration (FHA). It further 
assumes ending new FHA mortgage insurance policies for 
multifamily projects, saving $1.3 billion over seven years. The 
House resolution recognizes that the USDA's rural multifamily 
housing program has not been authorized, and therefore assumes 
not funding this program will save $0.7 billion over seven 
years.
Senate amendment
       The Senate amendment assumes the elimination of the 
Department of Commerce by 1999, which would save $6.8 billion 
in outlays over seven years (more than the House assumes), 
while retaining funding for the Patent and Trademark Office, 
the Bureau of the Census, Bureau of Economic Analysis, National 
Oceanic and Atmospheric Administration, the standards bureau 
and the national quality program of the National Institute of 
Standards and Technology, and most of the Export 
Administration. The Senate assumes reductions in program areas 
similar to where the House assumes savings: the Small Business 
Administration (SBA), the Rural Housing and Community 
Development Service (RHCDS), and the FHA multifamily property 
mortgage insurance program. Unlike the House resolution, the 
Senate amendment assumes sufficient funding will be provided to 
conduct the next census in 2000. However, the Senate assumes 
that almost $1 billion could be saved compared to the cost of 
past censuses if certain recommendations of the General 
Accounting Office are implemented.
      On the mandatory side, the Senate amendment assumed new 
and extended fees to be paid by the users of the services of 
certain federal regulatory agencies.
Conference agreement
      The conference agreement assumes the elimination of the 
Department of Commerce, except that scientific and technical 
research is funded at the House level, thereby reducing 
spending in this function for the department by $6.6 billion 
over seven years. In addition, the conference agreement assumes 
a mix of the savings proposals for the SBA, FHA, and the RHCDS 
included in the House and Senate budget resolutions. Further, 
the conference agreement includes the Senate assumption of 
funding for the periodic census. While the agreement does not 
assume funds for the costs of the FHA mark-to-market proposal, 
it does assume savings from further reform of the FHA 
multifamily property disposition process as proposed by the 
House.
      The conferees believe that the federal government's 
exposure in connection with its obligations, both in Section 8 
rental assistance subsidy and FHA multifamily insurance, is 
extreme to the point of requiring the insured and assisted 
housing multifamily portfolio to be restructured. Consequently, 
the conferees believe the committees of jurisdiction should 
explore a methodology for resolving this portfolio in a cost-
effective manner that utilizes private market forces, that 
removes government intervention in setting rent levels, and 
that terminates many project-based subsidies. Continuing 
present policies may result in the default of FHA insured 
mortgages, the dislocation of assisted tenants residing in 
projects with these mortgages, and great cost to the federal 
government. The conferees urge the committees of jurisdiction 
to consider legislation restructuring FHA mortgage insurance 
and Section 8 rental subsidies. To the extent that current 
scorekeeping rules complicate consideration of such 
legislation, the budget committees will work with the 
appropriate committees to examine ways to provide FHA the 
authority necessary to undertake the restructuring, within 
current rules, existing scoring authorities or within budget 
process reform legislation.

                      Function 400: Transportation

      The House budget resolution provides $301.7 billion in 
budget authority and $251.3 billion in outlays over seven 
years. The Senate amendment provides $278.0 billion in budget 
authority and $227.3 billion in outlays over seven years. The 
conference agreement provides $293.1 billion in budget 
authority and $244.8 billion in outlays over seven years.
House resolution
      The House assumes reductions in transportation spending 
generally will be met by eliminating highway demonstration 
projects; significantly downsizing the federal role in mass 
transit; phasing out federal support for Amtrak, and 
eliminating outdated and unnecessary programs, including the 
Interstate Commerce Commission, the Federal Maritime 
Commission, High Speed Rail, Essential Air service, Intelligent 
Vehicle Transportation systems, Local Rail Freight Assistance 
programs, and the Civil Aeromedical and FAA Training 
Institutes. The House also assumes extension of the current 
rail safety and vessel tonnage fees.
      The House resolution also provides an additional $4.2 
billion in mandatory budget authority to offset the projected 
reduction in contract authority mandated by Section 1003 of the 
Intermodal Surface Transportation Efficiency Act of 1991 
(ISTEA).
Senate amendment
      The Senate amendment assumes the privatization of the 
Federal Aviation Administration ( FAA) air traffic control 
(ATC) system beginning in 1997 and assumes the phase-out of 
Amtrak and mass transit operating subsidies by 2001.
      Similar to the House, the Senate amendment eliminates 
funding for highway demonstration projects.
Conference agreement
      The conference agreement assumes broad reforms to the 
Department of Transportation, including but are not limited 
to--program downsizing, streamlining and consolidation, and air 
traffic control privatization.
      The conferees recognize that the infrastructure needs of 
the nation are not being met fully by the current centralized 
financing structure. The conferees urge the committees of 
jurisdiction to explore comprehensive changes to federal 
transportation financing, emphasizing private sector 
participation and federalism.
      The conference agreement assumes phaseout of mass transit 
and Amtrak operating subsidies, and eliminating earmarks and 
several obsolete programs.

            Function 450: Community and Regional Development

      The House budget resolution provides $45.8 billion in 
budget authority and $50.4 billion in outlays over seven years. 
The Senate amendment provides $36.3 billion in budget authority 
and $43.2 billion in outlays over seven years. The conference 
agreement provides $43.5 billion in budget authority and $48.8 
billion in outlays over seven years.
House resolution
      The House resolution assumes reduction in spending in the 
Community Development Block Grant (CDBG) program of 20 percent. 
This proposal includes the assumption that funding would be 
focused on low-income communities and retains the option of 
including the program in a larger development, housing and 
special populations block grant.
      The House also calls for terminating Federal support for 
the Tennessee Valley Authority, saving $864 million over seven 
years. It eliminates the Appalachian Regional Commission (ARC), 
saving $2 billion over seven years, and ends funding for the 
Economic Development Administration, saving $2.3 billion over 
seven years. The House resolution also creates a rural 
development block similar to the one proposed by the President, 
and a new Native American block grant.
Senate amendment
      The Senate amendment makes similar assumptions as the 
House for discretionary spending with the following exceptions. 
The Senate amendment assumes a 50 percent reduction for (CDBG), 
reducing outlays by $12.2 billion over seven years. Unlike the 
House, the Senate does not assume the creation of a Native 
American Block Grant. The Senate also assumes the creation of a 
rural development block grant but at a lower level than the 
House. The rural development block grant would save $1.1 
billion over seven years.
      The Senate-reported resolution assumed the phase-out of 
the ARC. However, during floor consideration, the Senate 
adopted an amendment that restored funding for the Appalachian 
Regional Commission below the 1995 appropriated level. This 
amendment would reduce outlays for the ARC by $0.5 billion over 
seven years.
      For mandatory spending, the Senate assumes a similar 
proposal than the House, except that the subsidy is completely 
eliminated. The Senate proposal would reduce outlays by $2.9 
billion over seven years.
Conference agreement
      The conference agreement assumes a 28 percent reduction 
for the CDBG and assumes the Senate reduction for the ARC. In 
addition, both the House and Senate agree on the consolidation 
and streamlining of several rural development programs to 
create a rural development block grant which would be funded at 
the level assumed by the Senate. Further, the conference 
agreement would eliminate 75 percent of the flood insurance 
subsidy for buildings constructed before January 1, 1975.

   Function 500: Education, Training, Employment, and Social Services

      The House budget resolution provides $316.4 billion in 
budget authority and $321.1 billion in outlays over seven 
years. The Senate amendment provides $342 billion in budget 
authority and $343.8 billion in outlays over seven years. The 
conference agreement provides $338.7 billion in budget 
authority and $340.8 billion in outlays over seven years.
House resolution
      For discretionary spending, the House assumes additional 
spending of $688 million over seven years as a result of 
policies contained in HR 4, the House-passed welfare reform 
legislation. In function 500, the welfare bill consolidates 
nine discretionary programs targeted at abused children into a 
single block grant to the states.
      In the area of education, the House assumes the 
termination of the Department of Education. Major programs 
including Chapter 1 basic grants, Impact Aid for ``a'' 
students, Special Education, Vocational Rehabilitation, Pell 
Grants, unsubsidized Student Loans, funding for Historically 
Black College and Campus-Based Aid, would be preserved, but 
transferred to other agencies and departments. The resolution 
assumes the elimination of over 150 education programs that are 
duplicative, and in many cases, too small to be effective on a 
national scale.
      More than 60 job training programs would be consolidated 
into four block grants. By eliminating duplicative programs and 
increasing management efficiency, funding is reduced by 20 
percent. Spending for Vocational Rehabilitation for the 
disabled is not cut.
      The House proposes to fund Head Start at the fiscal year 
1994 level. The House eliminates the Corporation for National 
and Community Service with the recommendation that the Senior 
Volunteer Programs be moved to the Administration on Aging and 
authorized as part of the Older Americans Act.
      Funding for the National Endowment for the Arts (NEA) and 
the National Endowment for the Humanities (NEH) is assumed to 
be terminated. The Corporation for Public Broadcasting is 
privatized by 1998.
      For mandatory spending, the House assumes enactment of 
H.R. 4, the House-passed welfare reform legislation, which 
results in savings of $11.4 billion over seven years in 
Function 500, primarily from termination of the AFDC JOBS 
program and consolidation of several child protection programs 
into a single child protection block grant to states. The House 
budget resolution would eliminate the student loan in-school 
interest subsidy. This proposal saves taxpayers $18.66 billion 
over seven years. The resolution also assumes savings of $655 
million over seven years in this function resulting from 
termination of Trade Adjustment Assistance.
Senate amendment
      The Senate amendment does not assume the termination of 
the Department of Education.
      The Senate amendment makes similar assumptions as the 
House for discretionary spending with some exceptions. For 
example, the Senate does not assume the elimination of TRIO 
programs, or elimination of subsidies to Howard University. In 
addition, unlike the House, the Senate does not assume any 
reductions in Chapter 1 or elimination of the NEA and NEH.
      The House resolution and the Senate amendment assume a 
job training block grant. The Senate amendment assumes a 25 
percent reduction in funding for job training; the House 
assumes a 20 percent reduction. In addition the Senate 
amendment assumes funding for schools impacted by federal 
activities at a level higher than the President's request.
      Mandatory savings are smaller in the Senate amendment 
because the Senate does not assume the elimination of the in-
school interest subsidy for undergraduate students. In 
addition, during floor action on the Senate resolution, the 
Labor Committee reconciliation instruction was lowered by $9.4 
billion over seven years.
      The House resolution assumes the transfer of funding for 
the JOBS out of function 500 and into function 600 as part of 
the AFDC block grant. The Senate amendment assumes that JOBS is 
part of the job training block grant in function 500.
Conference agreement
      The conference agreement assumes $6.0 billion in budget 
authority and $1.0 billion in outlays in discretionary 
reductions in 1996 and $44.3 billion in budget authority and 
$37.4 billion in outlays over seven years. Specific 
discretionary items highlighted in the agreement include: no 
reductions in Chapter 1 or in subsidies to Howard University. 
Because of the recent downgrading of Howard University's 
revenue bonds, the conferees agreed to restore funding but urge 
the committees of jurisdiction to require Howard to develop a 
plan toward full financial independence at a date certain.
      The conferees agree to disagree on the future status of 
the Department of Education. They recognize that ultimately the 
committees of jurisdiction will determine whether the 
Department will be terminated.
       In addition, the conference agreement assumes a 20 
percent reduction in funding for job training programs. No 
reductions are proposed for the Vocational Rehabilitation Act 
and it is not assumed to be part of the block grant.
      For mandatory programs, the conference agreement assumes 
the JOBS program will be included in an AFDC block grant as 
opposed to a job training block grant. This assumption reflects 
the current jurisdictional placement of the program in the 
Finance and Ways and Means Committees. The conferees also 
assume reforms in student loan programs totalling $10 billion 
in outlays over seven years. These savings can be achieved 
without the elimination of the interest subsidy for 
undergraduate students.

                          Function 550: Health

      The House budget resolution provides $955.3 billion in 
budget authority and $955.4 billion in outlays over seven 
years. The Senate amendment provides $958.9 billion in budget 
authority and $957.7 billion in outlays over seven years. The 
conference agreement provides $949.7 billion in budget 
authority and $949.2 billion in outlays over seven years.
House resolution
      For the Medicaid program, the House resolution provides 
$768.1 billion in budget authority and outlays over seven 
years. The House resolution assumes that the Medicaid program 
will be converted into a block grant to the states. Medicaid 
outlays would grow by 8 percent in 1996, 5.5 percent in 1997, 
and 4 percent each year thereafter. No assumption is made about 
the distribution of funds among the various states.
      Function 550 discretionary spending in the House 
resolution is $146.8 billion in budget authority and $147.7 
billion in outlays over seven years. The resolution assumes a 
five percent reduction in funding for the National Institutes 
of Health, elimination of the Agency for Health Care Policy 
Research, and a 50 percent reduction in National Health Service 
Corps, Maternal and Child Health Care and Preventative Care 
block grants. Also, it assumes elimination of a number of 
duplicative and non-essential programs, primarily those that 
could not be justified as federal functions.
Senate amendment
       The Senate amendment assumes that a restructuring of 
Medicaid will occur, in which significant amounts of 
flexibility will be given to the States. The Senate amendment 
is designed to be compatible with a wide range of Medicaid 
restructuring proposals. The Senate makes no assumption about 
individual entitlement, eligibility groups, benefits, payment 
rates, financing structures, or the distribution of Federal 
funds among the states within the total Federal funding levels 
specified. The Senate does assume that the present aggregate 
ratio of Federal to State funding (57 percent Federal, 43 
percent State) would continue.
      The Medicaid outlay levels in the Senate amendment could 
be achieved in several ways, including a Medicaid block grant, 
in which aggregate Federal payments to states grew at the 
following rates from the 1995 Federal base level:

                      Benefits and Administration
                                                                 Percent
1996..............................................................     8
1997..............................................................     7
1998..............................................................     6
1999..............................................................     5
2000..............................................................     4
2001..............................................................     4
2002..............................................................     4
After 2002........................................................     4

      The Senate recognizes that block grants represent a 
significant change in the fiscal relationship between the 
States and the Federal government. Such a change can take time 
to implement. The Senate urges the Finance Committee to 
consider, where appropriate, other means of achieving the first 
year savings targets to provide States with the time necessary 
to adapt to a block grant.
      The Senate's discretionary assumptions are quite similar 
to the House's. The Senate amendment assumes that 19 Public 
Health Service programs would be consolidated into a single 
State Health Block Grant. There is significant overlap between 
the Senate's list for the block grant and programs the House 
assumes will be reduced or terminated. The Senate assumes a one 
percent reduction in funding for the National Institutes of 
Health.
      The Senate amendment assumes a change to the Federal 
Employee Health Benefit (FEHB) program. This assumption is 
described below in the conference agreement.
Conference agreement
      The conference agreement provides $773.1 billion in 
budget authority and outlays on Medicaid over seven years. This 
level is compatible with Medicaid growth of 7.2 percent in 
1996, 6.8 percent in 1997, and 4 percent each year thereafter, 
or with higher growth rates of benefits and administration if 
disproportionate share hospital payments are frozen at 1995 
levels. The conference agreement assumes that the present 
aggregate ratio of Federal to State funding (57 percent 
Federal, 43 percent State) would continue. The conference 
agreement does not make explicit assumptions about individual 
entitlement, or about eligibility groups, benefits, payment 
rates, financing structures, or the distribution of funds among 
the states. These decisions will be made by the committees of 
jurisdiction, and ultimately by the House and Senate.

              Medicaid Outlays in the Conference Agreement
                                                     Dollars in billions
1995..........................................................   $89.216
1996..........................................................    95.673
1997..........................................................   102.135
1998..........................................................   106.221
1999..........................................................   110.469
2000..........................................................   114.888
2001..........................................................   119.483
2002..........................................................   124.263
7-year total..................................................   773.132

      The conference agreement accepts the Senate's assumption 
on the Federal Employee Health Benefit program. This assumption 
would save $6.3 billion over seven years in discretionary 
spending for current Federal workers, and $4.9 billion over 
seven years in mandatory spending for Federal retirees. Federal 
agencies would follow the lead of the private sector by 
contributing a fixed dollar amount to Federal employees' health 
plans, thus encouraging Federal employees to make more cost-
effective decisions in the allocation of their compensation. 
This fixed dollar amount would be indexed to inflation. Federal 
agencies would no longer provide extra subsidies to those 
Federal employees who choose more expensive health plans. 
Federal employees would be able to avoid most of the burden of 
this policy change by choosing more cost-effective health 
plans. Those Federal employees who continued to choose more 
expensive health plans would bear the full economic burden 
above the amount of the Federal contribution. In an era in 
which health spending is rapidly spiraling upward, the Federal 
government should encourage employees to purchase more cost-
effective health plans. These savings are included in function 
550.
      The conference agreement has lower discretionary spending 
than both the House and the Senate. This is a result of House 
acceptance of the Senate FEHB assumption, and Senate acceptance 
of several other House discretionary changes. The conference 
agreement compromises on the National Institutes of Health, 
assuming a one percent reduction in 1996, and a three percent 
reduction from the 1995 level thereafter. This results in a 
$2.1 billion reduction in outlays over seven years, compared 
with $0.8 billion in the Senate and $3.6 billion in the House.
      The conference agreement assumes that the Office of the 
Surgeon General will be terminated.

                         Function 570: Medicare

      The House budget resolution provides $1,440.2 billion in 
budget authority and $1,425.9 billion in outlays over seven 
years. The Senate amendment provides $1,471.9 billion in budget 
authority and $1,457.7 billion in outlays over seven years. The 
conference agreement provides $1,457.6 billion in budget 
authority and $1,443.3 billion in outlays over seven years.
House resolution
      In response to the Medicare trustees warning of the 
imminent bankruptcy of the Medicare Hospital Insurance Trust 
Fund, the House resolution increases Medicare at a rate of 
growth that is lower than the current rate but high enough to 
continue providing Medicare beneficiaries with very broad 
coverage and excellent quality of care. The House resolution 
assumes a number of market-based provisions that will encourage 
the pursuit of efficient, high quality care and discourage 
overutilization of medical services.
      These provisions will help to bring the 1960's style 
Medicare program, which is growing at more than 11 percent per 
year, in line with innovative health delivery systems in the 
private sector. Health care in the private sector has evolved 
to provide a high level of recipient satisfaction while 
effectively containing costs at less than 5 percent growth per 
year. If Medicare is to survive the turn of the century, the 
program must take advantage of these same innovations. The 
House budget committee working group on health analyzed three 
strategies that would move the Medicare program securely into 
the next century while expanding choices for beneficiaries and 
providing a consumer oriented health care program.
      Each of these three approaches has been recognized by the 
Congressional Budget Office as a viable way to extend the 
solvency of the Medicare trust fund and to reduce the growth of 
Medicare spending to a rate that is more consistent with that 
of health care in the private sector. The three strategies are 
only illustrative examples of ways to preserve the Medicare 
program and have been offered as such to the Committee on Ways 
and Means and the Committee on Commerce, which share 
jurisdiction for the Medicare program.
      Three main principles were used as a guide during the 
development of these plans: first and foremost, fee-for-service 
Medicare must remain an option for those who want it. Second, 
the Medicare program should keep pace with the private 
insurance system, and beneficiaries should be able to maintain 
the same kinds of insurance arrangements in Medicare that they 
had during their working years. Finally, beneficiaries should 
have a greater choice of health care plans, such as a variety 
of coordinated care and indemnity options, as well as medical 
savings accounts.
      Under the three reform options, spending on every 
Medicare beneficiary would increase from an average of about 
$4,800 today to an average of about $6,400 in 2002. Total 
program spending would be allowed to grow from $178 billion in 
1995 to $258 billion--a seven-year increase of 45 percent. 
These options would open the way for the health care industry 
to create a multitude of new choices for beneficiaries and 
would empower beneficiaries to select health care that is 
tailored to their precise needs.
Senate amendment
      The Senate amendment is based on the recommendations of 
the Public Trustees of Medicare, as described in the Summary of 
the 1995 Annual Report on the Social Security and Medicare 
Trust Funds. Specifically, the Senate amendment addresses both 
the short and long-term insolvency of the entire Medicare 
program. Based on the recommendations of the Public Trustees 
and experts, the Senate chooses to think about Medicare in its 
entirety, and not to be bound by historical distinctions 
between parts A and B.
      The Senate amendment assumes that:
            Medicare reform will be addressed urgently as a 
        distinct legislative initiative;
            Comprehensive Medicare reforms will be undertaken 
        this year to make the program financially sound now;
            Reductions in the rate of growth of Medicare 
        expenditures will be focused on making Medicare itself 
        sustainable;
            A special bipartisan commission will be created to 
        address the long-term solvency of Medicare;
            This commission will address the questions raised 
        by the Public Trustees; and
            This commission will review the program's financing 
        methods, benefit provisions, and delivery mechanisms.
      The Senate amendment makes no specific assumptions about 
how the Medicare outlay levels in the resolution will be 
achieved.
Conference agreement
      The Medicare outlay levels in the conference agreement 
were based on spending levels necessary to preserve and protect 
Medicare. Specifically, the levels are necessary to protect the 
solvency of the program, to avoid the bankruptcy in 2002 
projected by the Medicare trustees under current law, and to 
begin structural reforms with the goal of ensuring Medicare's 
long-term viability. Although this agreement does not dictate 
specific policies, the conferees urge the committees of 
jurisdiction to examine the principles reflected in the House 
and Senate committee reports on the concurrent resolution on 
the budget.

                     Function 600: Income Security

      The House budget resolution provides $1,769.3 billion in 
Budget Authority and $1,773.8 billion in outlays over seven 
years. The Senate amendment provides $1,811.0 billion in Budget 
Authority and $1,807.1 billion in outlays over seven years. The 
conference agreement provides $1,793.9 billion in budget 
authority and $1,797.9 billion in outlays over seven years.
House resolution
      On the discretionary side, a variety of assumed reforms 
in public housing programs yields a total savings of $9.5 
billion over seven years. The reforms include ending new public 
housing construction; deregulating public housing authorities 
to reduce operating and modernization funding; and ending 
wasteful rehabilitation programs. In addition, the House 
assumes a block grant for housing, development, and special 
populations that yields savings of $8.8 billion over seven 
years. Section 8 assisted housing contracts require adding 
funds back into the budget, but assumed policy options--such as 
recapturing vouchers and certificates turned back to the 
government, and increasing tenant contributions--reduce the 
magnitude of that cost to approximately $23 billion.
      For mandatory spending, the resolution assumes enactment 
of the House-passed welfare reform legislation, H.R. 4. 
Affected programs include Aid to Families with Dependent 
Children, Food Stamps, Supplemental Security Income and Child 
Nutrition. In Function 600, the proposals result in mandatory 
savings of $111.3 billion in outlays over seven years. Reforms 
in federal civilian retirement, eliminating more generous 
pension treatment for Members of Congress and Congressional 
staff and changing the method of calculating initial retirement 
annuities to the average of the highest five salary years, are 
also assumed. These reforms result in savings of $1.6 billion 
over seven years. Trade Adjustment Assistance is assumed to be 
terminated, saving $1.3 billion over seven years.
      The resolution assumes states will be required to charge 
a 15 percent fee for non-AFDC child support collections, to 
recoup the administrative costs for non-AFDC collections. This 
offsetting collection would result in savings of $7.1 billion 
over seven years.
      The House-passed welfare reform plan also affects 
discretionary spending in Function 600, resulting in additional 
spending of $13.7 billion in outlays over seven years. In 
addition, the Low Income Home Energy Assistance Program 
(LIHEAP) is assumed to be terminated, saving $10.2 billion over 
seven years.
Senate amendment
      The Senate amendment assumes the addition of sufficient 
funds, about $39.9 billion in outlays, to renew all existing 
contracts for housing assistance (section 8) that will expire 
over the next seven years. In addition, the Senate amendment 
would incorporate many of the existing housing programs into a 
public housing block grant and an assisted housing block grant, 
while terminating certain other programs, saving a total of 
$9.5 billion over seven years.
      The Senate amendment proposes similar mandatory savings 
as compared to the House in welfare reform and Earned Income 
Tax Credit reform. However, the Senate proposed changes to EITC 
that were not a part of the House assumptions. The House 
proposed changes to Food Stamps, SSI and child nutrition 
programs that were not part of the Senate resolution.
      The Senate amendment assumes mandatory spending levels of 
$188.6 billion in budget authority and $186.2 billion in 
outlays in 1996, a decrease of $5.9 billion in outlays from the 
1996 projected level. Spending would rise to $246.9 billion in 
outlays or 33 percent over the 1996-2002 period. The amendment 
assumes $47 billion over five years, and $80 billion over seven 
years in savings from Welfare Reform (of which $45 billion over 
five years is in function 600.) In addition the Senate assumes 
reforming the EITC program to slow the rate of growth. Over the 
period of 1996-2002, the Committee recommends funding of over 
$800 billion for Food Stamps, SSI, EITC, AFDC, Child Care and 
Child Nutrition.
      The Senate amendment assumes a conformance of the 
military retiree COLA date and the civilian retiree COLA date. 
The Senate assumes the same elimination of more generous 
retirement benefits for Members of Congress and their staff. 
The Senate amendment assumes that the basis for pensions would 
rise from the average of the highest three annual salaries to 
the highest five annual salaries.
Conference agreement
      The conference agreement assumes a public housing block 
grant, an assisted housing block grant, and certain program 
terminations, as well as renewal of section 8 contracts, that 
together require an addition to Function 600 for housing 
programs of an amount approximately in between the higher 
amount added by the Senate amendment and the lower amount added 
back by the House resolution.
      The conferees agreed to reconciliation instructions to 
the Agriculture and Finance Committees in the Senate and 
instructions to the House Ways and Means, Agriculture and 
Education and Economic Opportunities Committee. The 
instructions include assumptions for Welfare Reform, Child 
Support Enforcement reform, and EITC reform.
      The conference agreement assumes the House recedes to the 
Senate on Federal retirement reform in Function 600, and phases 
in the Senate's assumed changes in the computation basis for 
federal pensions.

                     Function 650: Social Security

      The House budget resolution provides $2,902.5 billion in 
budget authority and $2,895.0 billion in outlays over seven 
years. The Senate amendment provides $2,917.7 billion in budget 
authority and $2,910.2 billion in outlays over seven years. The 
conference agreement provides $2,917.7 billion in budget 
authority and $2,910.2 billion in outlays over seven years.
House resolution
      The House resolution assumes no changes to the Social 
Security program.
Senate amendment
      The Senate amendment assumes no changes to the Social 
Security program.
Conference agreement
      The conference agreement assumes no changes to the Social 
Security program.

              Function 700: Veterans Benefits and Services

      The House budget resolution provides $272.4 billion in 
budget authority and $276.0 billion in outlays over seven 
years. The Senate amendment provides $265.3 billion in budget 
authority and $270.7 billion in outlays over seven years. The 
conference agreement provides $271.4 billion in budget 
authority and $276.0 billion in outlays over seven years.
House resolution
      Major projects construction is limited in the 
discretionary account to achieve deficit reduction savings of 
$1.0 billion over seven years. In mandatory accounts, the 
resolution assumes eight provisions of current law are 
permanently extended, for a seven-year savings of $4.0 billion. 
It also assumes that prescription copayments are increased to 
$5 in 1996 and 1997 and to $8 in 1999 and beyond, for a seven-
year savings of $1.1 billion. An OBRA 1990 compensation 
limitation on certain veterans is re-enacted, for a seven-year 
savings of $1.3 billion. The total seven-year savings in 
mandatory spending is $6.4 billion.
Senate amendment
      The Senate amendment assumes the following major policy 
options to achieve the discretionary funding levels: No changes 
in veterans medical funding. Under the Senate's amendment, 
spending on veterans health programs would be $780 million over 
the President's recommended level in 2000. Phase out 
construction of Department of Veterans Affairs (DVA) 
facilities, while incorporating the needs for improvement, 
repairs, new cemeteries, long term care facilities and 
conversion that must be performed over the short term, but 
expects that past 1999 the DVA system will use existing 
capacity. In 1996, the committee assumes the 1995 level of 
funding for general operating expenses less the funds for the 
one time modernization effort in the 1995 base.
      The Senate amendment assumes the following major policy 
options to achieve the mandatory funding levels: No changes in 
compensation or in cost of living adjustments for all veterans 
currently receiving compensation from service connected 
disabilities; a repeal of the ``Gardner decision'' that 
extended compensation to DVA medical patients suffering an 
adverse outcome in cases where no fault was found with DVA; 
targeting compensation in the future to veterans disabled in 
combat and veterans disabled during performance of duty; a 
phase in of a higher prescription co-payment for upper income 
veterans; extension of expiring current law provisions from the 
Omnibus Reconciliation Act of 1993; a restoration of the 
funding ratio for GI Bill benefits to the pre-Gulf War level.
Conference agreement
      The conference agreement assumes that the Senate recedes 
to the House with the following exceptions: the House recedes 
to the Senate with respect to a compromise on streamlining 
General Operating Expenses and with respect to repeal of 
parking garage revolving fund.

                Function 750: Administration of Justice

      The House budget resolution provides $116 billion in 
budget authority and $117.3 billion in outlays over seven 
years. The Senate amendment provides $150.4 billion in budget 
authority and $151.4 billion in outlays over seven years. The 
conference agreement provides $143.2 billion in budget 
authority and $139.6 billion in outlays over seven years.
House resolution
      The House resolution assumes a reduction in the Violent 
Crime Reduction Trust Fund, saving $5.0 billion in outlays over 
five years and $7.8 billion over seven years. Total Trust Fund 
outlays would be $2.1 billion in 1996, $18 billion over five 
years, and $28 billion over seven years. The House also agreed 
to phase out funding for the Legal Services Corporation over 
three years. This provision would produce savings of $1.6 
billion over five years and $2.4 billion over seven years.
      In addition, the House proposed to block grant funding 
for Justice Assistance Programs.
Senate amendment
      The Senate amendment assumes full funding of the Violent 
Crime Reduction Trust Fund and assumes continuation of the fund 
through the year 2002. Total Trust Fund outlays would be $2.3 
billion in 1996, and $35.5 billion over seven years.
      The Senate amendment assumes a 35 percent reduction in 
funding for the Legal Services Corporation and additional 
investments in Federal Law Enforcement.
      For Mandatory programs, the Senate amendment assumes that 
Judges pay will be frozen through 2002.
Conference agreement
      The conference agreement provides for substantial funding 
of the Violent Crime Reduction Trust Fund in order to 
demonstrate the federal commitment to support federal law 
enforcement and state and local efforts to reduce and prevent 
crime.
      In addition, it assumes the termination of federally 
funded entities including: the State Justice Institute, the US 
Parole Commission, and the Administrative Conference of the US 
Courts.
      In addition, the conference agreement assumes a reform of 
the US Marshals Service to end the political appointment 
process in that organization. The Administration and the US 
Marshals Service support this reform.
      The conferees are concerned that debts owed the federal 
government continue to grow into a significant backlog. The 
conferees recommend that appropriate committees of jurisdiction 
look into implementing a program that would require Executive 
Branch departments to contract with private debt collectors on 
an as-needed basis to collect delinquent debt. It also may be 
appropriate to move debt of sufficient age to the Justice 
Department for collection. The Department of Justice, through 
its U.S. Attorneys, is tasked with the collection of federal 
debt after other federal departments have exhausted all efforts 
short of litigation. Due to the growth of their federal, civil 
and criminal caseload, debt collection is given a lower 
priority. The conferees recommend that the appropriate 
committees of jurisdiction examine methods of moving the 
federal governments' substantial debt out of Executive Branch 
departments to the Department of Justice for collection on a 
timely basis. The conferees further recommend that appropriate 
committees of jurisdiction look into implementing a program 
that follows the General Accounting Office's recommendation to 
expand the Department of Justice pilot program to all federal 
judicial districts and to allow the Attorney General to 
contract with private counsel firms on an as-needed basis to 
collect delinquent debt.

                    Function 800: General Government

      The House budget resolution provides $82.1 billion in 
budget authority and $82.3 billion in outlays over seven years. 
The Senate amendment provides $84.5 billion in budget authority 
and $84.9 billion in outlays over seven years. The conference 
agreement provides $84.2 billion in budget authority and $84.5 
billion in outlays over seven years.
House resolution
      For discretionary spending, the House resolution assumes 
a seven-year moratorium on construction and acquisition of new 
Federal buildings. This proposal saves $2.5 billion over seven 
years. The House resolution also assumes elimination of certain 
General Services Administration (GSA) and Legislative Branch 
activities, including: the Office of Technology Assessment 
(OTA), the Advisory Commission on Intergovernmental Relations 
(ACIR), and the Federal Supply Service. In addition, the House 
resolution assumes reduced funding for the Executive Office of 
the President and the General Accounting Office (GAO).
Senate amendment
      For discretionary spending, the Senate amendment assumes 
savings from the Senate Republican Conference plan to reduce 
Legislative Branch spending by $200 million from the 1995 
level. Similar to the House resolution, the Senate Republican 
Conference plan proposes reducing funding for committee staffs, 
GAO, and other functions and terminating OTA. The Senate 
amendment assumes significant savings from streamlining 
operations and consolidating functions in Treasury, GSA, and 
the Office of Territorial Affairs in the Department of 
Interior. The Senate amendment reflects a 25 percent reduction 
in funds for construction of new Federal buildings. The Senate 
also assumes the Office of Personnel Management (OPM) would be 
phased down to a Civil Service Commission. Employee benefit and 
retirement functions would remain centralized while most other 
functions would be delegated to the agencies. The Senate 
amendment assumes full funding of the President's request for 
the Internal Revenue Service (IRS) tax law enforcement 
functions, including the compliance initiative begun in 1995, 
within the discretionary cap.
      For mandatory spending, the Senate amendment assumes 
savings from freezing pay for Members of Congress until the 
budget is balanced in 2002 and from charging fees for parking 
at Federal buildings.
Conference agreement
      For discretionary spending, the conference agreement 
assumes that Legislative Branch spending will be reduced by at 
least $200 million from the 1995 level. The conferees strongly 
support efforts to reform government printing policies and 
encourage committees of jurisdiction to examine the proposals 
discussed in the House report on the budget resolution.
      Since 1955, it has been the policy of the Federal 
government that it will not provide a service or product for 
its own use if such product or service can be procured from the 
private sector. Each federal agency should obtain all goods and 
services necessary or beneficial to the accomplishment of its 
authorized functions by procurement from private sources unless 
the goods or services are required by law to be produced or 
performed, respectively, by the agency, or the head of an 
agency determines and certifies to the Congress that government 
production, manufacture or provision of a good or service is 
necessary for the national defense; a good or service is so 
inherently governmental in nature that it is in the public 
interest to require production or performance, respectively, by 
a government employee; or there is no private source capable of 
providing the good or service. The conferees recommend that 
committees of jurisdiction examine impediments to accomplishing 
this objective.
      The conference agreement accepts the Senate assumption 
for IRS tax law enforcement, including funding the continuation 
of the 1995 tax compliance initiative within the discretionary 
cap. The conferees strongly endorse continued funding of this 
initiative, which, according to the Treasury Department, is 
expected to increase revenue collections by $9.2 billion over 
the 1995-1999 period. The conference agreement assumes many of 
the Senate savings in Treasury agencies and a 30 percent 
reduction in funds for Federal building construction. The 
conference agreement also reflects the Senate assumption for 
downsizing OPM.

                        Function 920: Allowances

      The House budget resolution provides -$17.5 billion in 
budget authority and -$18.1 billion in outlays over seven 
years. The Senate amendment provides -$55.4 billion in budget 
authority and -$54.3 billion in outlays over seven years. The 
conference agreement provides -$33.8 billion in budget 
authority and outlays over seven years.
House resolution
      The House resolution assumes savings of $8.4 billion over 
seven years in outlays by reducing federal agency overhead. The 
House resolution also assumes savings from the repeal of the 
Davis-Bacon Act, $4.4 billion over seven years in outlays, and 
the McNamara-O'Hara Service Contract Act, $4.6 billion over 
seven years in outlays. In addition, the House resolution 
assumes the termination of 63 boards and commissions.
Senate amendment
      The Senate amendment assumes a 15 percent reduction in 
the overhead of non-defense agencies that remain funded in the 
budget, which saves $65.8 billion over seven years. The Senate 
amendment also assumes the repeal of the Davis-Bacon Act and a 
modification in the Service Contract Act, thereby reducing 
federal contract costs. In addition, the Senate amendment adds 
funding to cover half of agencies' costs of providing annual 
pay raises (based on the employment cost index-ECI) to federal 
employees (except Senior Executive Service and Executive 
Schedule).
Conference agreement
      The conference agreement assumes overhead savings that 
are roughly halfway in between the savings assumed in the House 
resolution and the Senate amendment. The agreement also assumes 
the House's full repeal of the Service Contract Act, the House 
assumption of savings for agencies from using a VISA credit 
card for GPO orders less than $1,000, and the repeal of the 
Davis-Bacon Act. Finally, the agreement assumes funding to 
cover half of the cost of scheduled ECI raises.

            Function 950: Undistributed Offsetting Receipts
       The House budget resolution provides -$315.7 billion in 
budget authority and outlays over seven years. The Senate 
amendment provides -$322.1 billion in budget authority and 
outlays over seven years. The conference agreement provides 
-$313.7 billion in budget authority and outlays over seven 
years.
House resolution
      The largest policy impact in this function is expected to 
come from extending and broadening the Federal Communications 
Commission's (FCC) authority to auction spectrum. The 
resolution assumes additional receipts from this authority of 
$15 billion over seven years.
      The House also anticipates proceeds of $4.2 billion from 
transferring the Alaska Power Marketing Administration to 
Alaska, and converting the Southeastern, Southwestern, and 
Western power agencies into private corporations.
      Finally, the resolution assumes the 2.5 percent increase 
in federal employee retirement contributions that were part of 
H.R. 1215, as passed by the House earlier this year.
Senate amendment
      The Senate amendment assumes broad and permanent 
authority would be provided to the FCC to recover value through 
auction or fees from the spectrum, amounting to $29 billion 
over seven years. The Senate amendment includes no assumption 
relating to payments into the federal civilian retirement 
plans. All effects of asset sales are displayed in function 
270.
Conference agreement
      The conference agreement assumes the FCC is provided 
sufficient authority to recover value from the spectrum 
amounting to $14 billion over seven years. In addition, the 
agreement assumes either that federal workers would contribute 
an additional 0.25 percent of their salary in 1996 and 1997 
(increasing to 0.5 percent in 1998 and thereafter) towards 
their retirement and that employing agencies would pay an 
additional 1 percent per year beginning in 1996, or some other 
changes in federal employee policies that would be sufficient 
to achieve these savings. The budgetary effect of the 
employees' contributions appear in the revenues part of the 
budget, while the agencies' contributions, which are 
intrabudgetary and are paid from most budget functions, appear 
as $2.7 billion of offsetting receipts in Function 950.
      The conference agreement assumes net mandatory savings 
from energy assets sales of $77 million in 1996, and $737 
million for the period 1996 through 2002. The House resolution 
assumed net mandatory savings from the sale of the Alaska, 
Southeastern, and Southwestern, and Western power marketing 
administrations (PMAs) of $77 million in 1996, and $1.4 billion 
over 7 years. The Senate assumed a narrower proposal for the 
sale of PMA assets, which would achieve net mandatory savings 
of $77 million in 1996, and $167 million over 7 years. The 
conferees note that the most significant difference for energy 
mandatory spending between the House resolution and the Senate 
amendment was the sale of PMA assets.
      While the Senate adopted a sense of the Senate amendment 
that the savings should be achieved in other energy mandatory 
programs, the conferees were unable to identify sources in 
other energy mandatory programs to achieve this level of 
savings. The conference agreement drops the Senate's 
assumptions in function 270, Energy, to achieve savings of $900 
million from the sale of 62 million barrels of Weeks Island 
strategic petroleum reserve oil and $154 million from 
hydropower leasing to give the committees of jurisdiction 
maximum flexibility to achieve savings assumed from energy 
asset sales.
      The conferees note that the Senate Energy and Natural 
Resources Committee's reconciliation instruction in the 
conference agreement is smaller than the Senate amendment's 
instruction. The conferees note that the entire unspecified 
energy asset savings could be achieved by the sale of PMA 
assets. Alternatively, these savings could be achieved through 
a combination of the sale of Weeks Island oil, hydropower 
leasing, and even a narrower proposal for the sale of PMA 
assets than assumed in the Senate-reported budget resolution.
      Ultimately, the committees of jurisdiction must determine 
how to meet their reconciliation instructions. If the 
committees of jurisdiction pursue PMA sales as a means of 
achieving the savings assumed in the conference agreement, the 
conferees believe the sale should be structured to ensure that 
ratepayers are protected from unreasonable rate increases. The 
conferees are concerned that allegations are being made that 
the sale of the PMAs could cause exorbitant increases in the 
cost of electricity to ratepayers. The conferees believe these 
facilities can be operated more efficiently and that the sale 
of these assets can be accomplished with appropriate safeguards 
that can ensure no or minimal increase in customers' 
electricity rates.

                                Revenues

      Federal revenues are taxes and other collections from the 
public that result from the government's sovereign or 
governmental powers. Federal revenues include individual income 
taxes, corporate income taxes, social insurance taxes, estate 
and gift taxes, customs duties and miscellaneous receipts 
(which include deposits of earnings by the Federal Reserve 
System, fines, penalties, fees for regulatory services, and 
others).
      In 1995, total revenue collections are expected to be 
$1.355 trillion. The House budget resolution projects federal 
revenues to be $1.815 trillion by the year 2002, representing 
36 percent growth from the 1995 level. The Senate amendment 
projects federal revenues to be $1.885 trillion by the year 
2002, representing 39 percent growth from the 1995 level.
House resolution
      The House revenue projections reflect CBO's December 1994 
estimates and economic assumptions. It includes the enactment 
of H.R. 831 which restores the 25 percent deduction for health 
insurance costs of self-employed individuals for 1994, and 
would increase it permanently to 30 percent thereafter.
      The House resolution assumes enactment of H.R. 1215, the 
replacement of the one-dollar bill with a new dollar coin, and 
the elimination of several corporate tax subsidies.
      H.R. 1215, the Tax Fairness and Deficit Reduction Act of 
1995, includes provisions that would provide tax relief to 
families with a $500 per child tax credit, reduce the tax 
penalty on two-earner married couples, restore universality to 
IRAs, repeal the 1993 tax increase on social security benefits, 
and reduce the cost of capital and increase incentives for risk 
taking by indexing and reducing the effective tax rate on 
capital gain income.
      The House resolution anticipates that the Committee on 
Ways and Means will explore restoration or continuation of 
certain tax and trade provisions which have expired or will 
soon expire as well as certain other tax measures. It is 
expected that the Committee on Ways and Means--in seeking to 
offset the cost of these measures--will look to changes 
reducing inappropriate corporate tax benefits, other 
appropriate revenue offsets, and spending reductions within the 
Committee's jurisdiction.
Senate amendment
      The Senate amendment assumes no net change in revenues 
from the current law level over the period 1996-2000 or over 
the period 1996-2002. The Finance Committee is given no revenue 
reconciliation instructions.
      The Senate amendment incorporates the revenue losses 
associated with the prior enactment of H.R. 831, the Self-
Employed Health Insurance bill. The Senate amendment also 
incorporates small revenue increases associated with 
assumptions regarding reform of the Earned Income Tax Credit 
(EITC) (roughly 90 percent of the budget effect of the EITC 
reform proposals is shown in function 600). During floor 
consideration, the Senate agreed to the Snowe amendment which 
assumes a five-year revenue increase of $6.2 billion and a 
seven-year revenue increase of $9.4 billion from reducing 
corporate tax subsidies. The Senate amendment contains Sense of 
the Senate language which recommends that the expatriate 
loophole be closed (raising $3.6 billion in revenue over ten 
years) and that the revenues be used for deficit reduction.
      The Senate amendment assumes that the Finance Committee 
acts to extend expiring provisions so long as the net revenue 
reductions are no greater than $3.7 billion over five years and 
$3.8 billion over seven years. The Finance Committee may decide 
to raise some revenues by extending expiring taxes, and reduce 
some revenues by extending other expiring provisions. Possible 
extensions of current taxes that raise revenue include: 
corporate tax dedicated to Superfund, FUTA 0.2 percentage point 
surtax, luxury tax on passenger vehicles, 1.25 cents/gallon 
railroad diesel fuel tax, 2.5 cents/gallon motorboat gasoline 
tax, and the 20.1 cents/gallon motorboat diesel fuel tax. 
Possible extensions of expiring provisions that lose revenue 
include: the commercial aviation exemption from the fuel tax, 
deduction for contributions to private foundations, targeted 
jobs tax credit, exclusion for employer-provided education 
assistance, orphan drug tax credit, research and 
experimentation tax credit and allocation rules, generalized 
system of preferences, deny deduction for some noncomplying 
health plans (ERISA waiver), and the nonconventional fuels tax 
credit.
      The Senate amendment assumes that the Federal Reserve 
would be required to transfer reserves to the Treasury, saving 
$1.7 billion in 1999 and $2.0 billion in 2000.
      In the section on procedural provisions, the Senate 
amendment includes two ``reserve funds'' that would provide for 
further tax reductions. The first reserve fund would provide, 
after passage of a conference report on reconciliation, a 
reserve fund to accommodate deficit-neutral tax reduction 
legislation. The second reserve fund would provide, after 
enactment of reconciliation, a reserve fund to allow CBO's 
``fiscal dividend'' to be made available for tax reduction 
legislation. The language in the resolution makes it clear that 
the fiscal dividend savings must be ``locked-in'' before they 
can be dedicated to tax cuts. The reserve fund provides that in 
the event reconciliation is enacted, the Congressional Budget 
Office (CBO) would certify, broken down on a year-by-year 
basis, the amount of the fiscal dividend achieved as a result 
of enacting this balanced budget plan. That ``fiscal dividend'' 
could be used to offset the revenue loss from a tax cut. 
Numerous amendments designed to use the fiscal dividend to 
increase the size of government by increasing spending on 
various programs were defeated. By voting down various 
amendments, the Senate expressed its view that the fiscal 
dividend should not be used to restart the tax and spend cycle 
that this fair, but tough, balanced budget plan was designed to 
stop.
      The Committee adopted a Boxer-Brown Sense of the Senate 
resolution providing that approximately ninety percent of the 
benefits of any tax cuts should be targeted to middle class 
working families with incomes below approximately $100,000. The 
Committee's interpretation of the appropriate definition of 
``income'' is adjusted gross income. It is the Committee's view 
that adjusted gross income is the most commonly understood 
definition of income. Taxpayers and the Internal Revenue 
Service use ``adjusted gross income'' to calculate federal 
income tax liability. The Committee expressly rejected the use 
of ``family economic income'' to calculate income for the 
purpose of defining the middle class tax cut. It expressly 
rejected the view that income should be calculated to include 
the value of the ``imputed rent'' on owner-occupied housing, 
the value of employer-provided benefits such as health 
insurance and pension contributions, the value of the inside 
build-up of life insurance, pension plans, capital gains that 
have not yet been realized because the taxpayer has not sold 
the capital asset, an estimate of income that an average family 
should have reported for tax purposes but did not, or Social 
Security and AFDC payments. Each of these items are included in 
the definition of family economic income. Any calculation based 
on family economic income results in families appearing to be 
in higher income brackets and income tax brackets than they 
actually are.
      The specific requirements for both reserve funds are 
discussed in more detail in the description of procedural 
provisions.
Conference agreement
      The conference agreement incorporates the revenue losses 
associated with the prior enactment of H.R. 831, the Self-
Employed Health Insurance bill and does not assume extension of 
the oil and feedstock excise tax dedicated to Superfund. The 
conference agreement assumes that some savings will be achieved 
from EITC reform, and that the Finance and Ways and Means 
Committees will act to extend expiring provisions. The 
conference agreement does not assume additional revenues from 
requiring Federal Reserve transfers to the Treasury. The 
conference agreement does not assume additional revenues from 
replacing the one-dollar bill with a one-dollar coin. However, 
the Conferees believe the proposal has significant merit and 
encourage the Banking Committees to seriously consider this 
proposal to update our money system.
      The conference agreement assumes that federal employees 
will increase contributions toward their retirement by 0.25 
percent of their salary in 1996 and 1997 and an additional 0.25 
percent in 1998 and thereafter. This phased-in one-half percent 
increase in employee contributions results in additional 
revenues of $1.1 billion over seven years.
      The conference agreement includes a ``budget surplus 
allowance'' that could provide for further tax reductions which 
is discussed in the section on Procedural Provisions.
      The conference agreement anticipates that the respective 
House and Senate authorizing committees will comply with the 
deficit-reduction reconciliation directives in this resolution, 
thereby allowing a net seven-year tax cut of $245 billion to be 
included in the final reconciliation bill. The conferees agree 
that the $245 billion net tax cut represents an appropriate 
balance between accommodating the tax cuts in the House-passed 
``Contract with America'' and the need to put the deficit on a 
declining path to a balanced budget in the year 2002. The 
conference agreement allows a net tax cut which the conferees 
agree can accommodate provisions which will strengthen the 
American family by reducing the tax burden on families with 
children and on two-earner married couples, and encourage 
savings, capital investment, job creation and economic growth 
by reducing taxes on savings and investment.
      The conferees also urge the Finance and Ways and Means 
Committees to explore the closing of corporate tax loopholes 
that confer inappropriate tax benefits on individual 
corporations or industries. The elimination of these tax 
loopholes should either be included in the reconciliation 
process or in other legislation affecting revenues, such as 
legislation designed to extend expiring tax provisions.

                               Procedures

                     Discretionary Spending Limits

     (Sec. 201 of the Senate amendment; Sec. 201 of the conference 
                               agreement)

      The 1990 Budget Enforcement Act (BEA) established caps on 
defense, international, and domestic discretionary spending. 
These caps were enforced by sequesters and a points of order in 
the Senate. The separate caps covered 1990 through 1993. The 
BEA provided a cap on total discretionary spending for 1994 
through 1995. The Omnibus Budget Reconciliation Act of 1993 
extended caps on total discretionary spending through 1998. The 
1995 budget resolution (H. Con. Res. 218) reduced these 
discretionary caps for purposes of enforcement in the Senate.
House resolution
      The House resolution contains no provisions regarding 
discretionary spending limits.
Senate amendment
      Section 201 of the Senate amendment establishes caps on 
defense and nondefense discretionary spending for 1996 through 
2002. For 1996 through 2000, the discretionary caps do not 
include funding from the Violent Crime Reduction Trust Fund, 
consistent with the intent of public law 103-322, which 
established the fund. This section also provides for the 
enforcement of these discretionary spending caps by creating a 
point of order in the Senate against consideration of a budget 
resolution that would exceed the aggregate cap on discretionary 
spending. This section also provides a point of order in the 
Senate against an appropriations bill that would exceed the 
defense or non-defense levels for a fiscal year or that would 
exceed the section 602(b) suballocation of those levels. This 
point of order can be waived by an affirmative vote of three-
fifths of the Senate.
Conference agreement
      The conference agreement contains the Senate provision 
with an amendment. The conference agreement modifies the Senate 
amendment to provide individual caps for defense and nondefense 
spending for 1996 through 1998. In addition, the agreement 
provides that the application of the point of order to budget 
resolutions after 1996 is contingent on the enactment of a 
reconciliation bill pursuant to this resolution. The 
discretionary spending limits are applicable in both Houses, 
but are enforced by a point of order only in the Senate. The 
following table indicates the discretionary spending limits for 
1996 through 2002.

                                            DISCRETIONARY CAP TOTALS                                            
                                              [Dollars in millions]                                             
----------------------------------------------------------------------------------------------------------------
                                              1996      1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
  Defense:                                                                                                      
    Budget Authority......................   265,406   267,962   269,731                                        
    Outlays...............................   264,043   265,734   264,531                                        
  Nondefense:                                                                                                   
    Budget Authority......................   219,668   214,468   220,961                                        
    Outlays...............................   267,725   254,561   248,101                                        
  Total Discretionary:                                                                                          
    Budget Authority......................   485,074   482,430   490,692   482,207   489,379   496,601   498,837
    Outlays...............................   531,768   520,295   512,632   510,482   514,234   516,403   515,075
----------------------------------------------------------------------------------------------------------------

         Extensions of the Senate Pay-As-You-Go Point of Order

     (Sec. 202 of the Senate amendment; Sec. 202 of the conference 
                               agreement)

      Subsection 12(c) of the 1994 budget resolution (H. Con. 
Res. 64) established a pay-as-you-go point of order in the 
Senate that prohibited consideration of legislation that would 
cause an increase in the deficit over a ten year period. The 
1995 budget resolution (H. Con. Res. 218) modified and extended 
this point of order to provide that legislation was out of 
order if it caused a deficit increase in the first year covered 
by the budget resolution, the sum of the first five years 
covered by the budget resolution, and the sum of the five years 
following the first five year period. The current pay-as-you-go 
point of order expires in 1998.
House resolution
      The House resolution contains no provisions regarding the 
pay-as-you-go point of order.
Senate amendment
      Section 202 of the Senate amendment extends this point of 
order through 2002 and revises the point of order to make one 
additional change. The current pay-as-you-go point of order 
permits the use of budgetary savings generated by legislation 
enacted since 1993 as an offset for legislation that would 
increase the deficit. The Senate would modify the pay-as-you-go 
point of order to eliminate the ability to use prior year 
surpluses.
Conference agreement
      The conference agreement contains the Senate provision 
with an amendment. This amendment provides that the budgetary 
effects of the reconciliation legislation enacted pursuant to 
this resolution should not be taken into account for the 
purposes of the pay-as-you-go point of order. This ensures that 
the budgetary savings achieved from enactment of reconciliation 
legislation are devoted to deficit reduction and cannot be used 
as an offset for future legislation.

                             Reserve Funds

    (Sec. 203 of the Senate amendment; Sec. 203 and Sec. 204 of the 
                         conference agreement)

      A budget resolution establishes binding ceilings on 
spending and binding floors on revenues. These ceilings and 
floors are enforced by points of order in the Senate that, if 
raised, can only be waived by an affirmative vote of three-
fifths of the Senate. A reserve fund provides the Chairman of 
the Budget Committee with the authority to modify the outlay 
ceiling and the revenue floor to accommodate deficit-neutral 
legislation. The Budget Act specifically authorizes the 
inclusion of reserve funds in a budget resolution and past 
budget resolutions have included reserve funds for a variety of 
purposes. For example, the 1995 budget resolution contained 11 
such reserve funds.
House resolution
      The House resolution contains no reserve funds.
Senate amendment
      Section 203 of the Senate amendment provides a reserve 
fund for deficit-neutral legislation that reduces revenues 
following passage of the conference report on reconciliation. 
This reserve fund provides the Chairman authority to modify the 
aggregates for legislation that reduces revenues.
Conference agreement
      The conference agreement contains two reserve funds: 
section 203 provides a reserve fund in the Senate for tax 
reduction legislation and section 204 provides a reserve fund 
in both Houses for welfare reform legislation.
      Section 203 gives the Senate Budget Committee Chairman 
the authority to revise budget aggregates and allocations for 
deficit-neutral tax reduction legislation. This first reserve 
fund is not available until after September 30, 1995. The 
conferees chose this deadline because it falls after the 
reconciliation reporting deadline (including time to respond to 
the second reconciliation instruction).
      The conference agreement gives the Chairman the 
discretion to modify the aggregates for deficit-neutral tax 
reduction legislation. The conferees intend that committees 
meet their reconciliation instructions first and that these 
savings are enacted before this reserve fund is used. The 
conferees are particularly opposed to efforts to take 
provisions from reconciliation legislation that are necessary 
to balance the budget and use them in separate legislation to 
pay for tax reductions. However, if reconciliation legislation 
clearly fails in the Congress or the President vetoes the 
reconciliation bill and such veto is not over turned, this 
reserve fund is provided to allow Congress the flexibility to 
consider tax reform legislation as long as it does not increase 
the deficit.
      Section 204 of the conference agreement provides a 
welfare reserve fund for both Houses. This reserve fund 
provides a mechanism to increase the discretionary caps for 
welfare reform legislation that converts welfare entitlement 
programs to discretionary programs. The conference agreement 
assumes significant savings in welfare reform programs. This 
reserve fund only can be triggered for legislation if the 
mandatory savings associated with the conversion are in excess 
of the savings necessary to comply with the reconciliation 
directives of this resolution. While the Chairmen are given 
discretion to revise allocations and aggregates pursuant to 
this section, the conferees intend and fully expect that the 
Chairmen will make these revisions if the conditions of the 
welfare reserve fund are met. The fact that the conferees do 
not make explicit assumptions about converting welfare 
entitlement programs to discretionary programs should not be 
viewed as a bias against such proposals, and this reserve fund 
provides a mechanism to accommodate such legislation.

                        Budget Surplus Allowance

     (Sec. 204 of the Senate amendment; Sec. 205 of the conference 
                               agreement)

      The budget surplus allowance is a procedure to 
accommodate tax reduction legislation if the budget is balanced 
by 2002. The budget surplus allowance would make the additional 
savings resulting from a balanced budget available for tax 
reduction legislation.
      CBO has calculated that adoption of a balanced budget 
could generate additional budgetary savings of $170 billion 
over seven years as the result of reduced interest rates and 
higher economic growth brought on by budget balance that 
eliminates the need for additional federal borrowing. This 
additional budgetary savings has been referred to as the 
``fiscal dividend'' or ``economic dividend''.
      Past budget resolutions have contained reserve funds, 
contingencies or allowances that provide the Budget Committee 
Chairman with the authority to modify the aggregate levels in 
the budget resolution for future legislation. For example, the 
1995 budget resolution gave the Chairman the authority to add 
$405 million in budget authority and outlays to the levels in 
the budget resolution to accommodate higher spending by the 
Internal Revenue Service (IRS).
House resolution
      The House resolution contains no budget surplus 
allowances.
      The House budget resolution assumes CBO's $170 billion 
fiscal dividend from balancing the budget. The House budget 
resolution is based on CBO's January economic forecast and 
projections. The House modified CBO's economic projections of 
interest rates and real GDP growth to include CBO's estimate of 
the fiscal dividend. This modification reduces CBO's deficit 
projection by $170 billion for the period 1996 through 2002.
Senate amendment
      The Senate amendment did not include the $170 billion 
fiscal dividend in the baseline. Instead, the Senate amendment 
provides a procedure that would make the fiscal dividend 
available for tax reduction legislation only after enactment of 
a reconciliation bill that balances the budget by 2002.
      Section 204 of the amendment provides a budget surplus 
allowance that requires the Chairman of the Senate Budget 
Committee to reduce the budget resolution's revenue floor by an 
amount equal to the additional budgetary savings as estimated 
by CBO that will be achieved as a result of the enactment of 
legislation that produces a balanced budget.
      This section also establishes a number of contingencies 
that accommodate tax reductions only if certain conditions are 
met. The primary contingency is a requirement that the 
Congressional Budget Office (CBO) certify that the 
reconciliation bill will produce a balanced budget by 2002. 
Once CBO certifies that the enacted reconciliation bill will 
produce a balanced budget by 2002, the Chairman is required to 
lower the revenue floor to accommodate legislation that 
provides family tax relief and incentives to stimulate savings, 
investment, job creation, and economic growth.
Conference agreement
      Section 205 of the conference agreement establishes a 
budget surplus allowance that provides that tax reductions only 
will be enacted as part of a legislative package that will 
produce a balanced budget by 2002. Under the conference 
agreement, if this bill does not achieve balance by 2002, the 
tax reductions are not to be included in the reconciliation 
bill.
      Section 105 of the conference agreement includes two 
reconciliation instructions. The first reconciliation 
instruction, section 105(a), comprises the outlay savings 
necessary to reach balance by 2002. The second instruction, 
section 105(b) of the resolution, comprises the revenue 
reductions and is triggered by section 205 of the conference 
agreement, the budget surplus allowance.
      Section 205 of the conference agreement requires the 
Chairmen of the Budget Committees to submit committees' 
responses to the first reconciliation instruction to the 
Congressional Budget Office (CBO). If CBO certifies that these 
legislative recommendations will reduce spending by an amount 
that will lead to a balanced budget by 2002, the second 
reconciliation instruction is triggered. On the other hand, if 
CBO finds that the first submission would not lead to a 
balanced budget by 2002 and committees are unable to submit 
legislation that would produce a balanced budget, then the 
Budget Committees are to report the reconciliation bill absent 
the tax reductions.
      Section 205(a) also requires the Chairmen of the Budget 
Committees to submit the conference report on reconciliation 
legislation to CBO prior to the submission of this conference 
report. In conducting the assessment of legislative submissions 
made pursuant to section 105(a), the conferees intend that CBO 
not include the fiscal dividend. If the conference report 
contains tax reductions pursuant to section 105(b), CBO's 
assessment of the conference report should take into account 
the fiscal dividend in its assessment of whether the conference 
report would achieve a balanced budget by 2002.
      If the second reconciliation instruction is triggered, 
the tax writing committees are instructed to reduce revenues by 
a total of not more than $245 billion over 7 years and by not 
more than $50 billion in 2002. The tax writing committees are 
given 5 days to submit tax legislation to the Budget 
Committees. The Budget Committees are then required to add this 
tax reduction legislation with the earlier submissions and 
report one bill that encompasses both the spending reductions 
and the tax reductions.
       If CBO certifies that the committees' reconciliation 
submissions made pursuant to section 105(a) will achieve a 
balanced budget, section 205(b) requires the Chairman of the 
Budget Committee to reduce the revenue aggregates by an amount 
that is consistent with the reconciliation instructions. The 
budget resolution revenue aggregates and reconciliation 
instructions are not parallel in this instance. The conferees 
intend that the Chairman reduce the revenue aggregates by an 
amount that would accommodate a seven-year tax reduction of 
$245 billion as long as this revision does not result in a 
deficit in 2002.
      The conference agreement is predicated on a balanced 
budget plan. Section 205(e) provides that the revenue 
reconciliation instruction and the authority to modify the 
revenue aggregates to accommodate reconciliation legislation is 
only available if the reconciliation directives are achieved 
and the reconciliation legislation produces a balanced budget 
based on CBO's estimates.
      Under section 205(e), the Senate Budget Committee 
Chairman is responsible for assuring that the revenue 
aggregates are not reduced below a level that would cause a 
deficit in 2002. If CBO's assessment of the conference report 
under section 204(a) concludes that it will result in a deficit 
in 2002, in compliance with this subsection, the conferees 
intend that the Chairmen work with the committees to modify the 
conference report to achieve a balanced budget by 2002. If this 
is not possible, it is the Senate Budget Committee Chairman's 
responsibility to raise the revenue floor by an amount to 
ensure that the reconciliation conference report achieves 
balance by 2002 and if the tax reductions in the conference 
report are not modified, the conference report could be subject 
to a point of order under section 311 of the Budget Act.
                    Scoring of Emergency Legislation

                   (Sec. 205 of the Senate amendment)

      Section 606(d)(2) of the Congressional Budget and 
Impoundment Control Act of 1974 provides that the budgetary 
impact of legislation is not taken into account for Budget Act 
points of order if legislation is designated as an emergency by 
the President and the Congress.
House resolution
      The House resolution contains no changes in rules or 
procedures for emergency legislation, but section 9 of the 
House resolution does contain sense of the Congress language on 
emergency legislation.
Senate amendment
      Section 205 of the Senate amendment provides that 
beginning with 1996 all legislation will be scored for the 
purposes of the budget resolution and the Budget Act even if it 
is designated as an emergency. The Senate amendment does not 
affect current law provisions that provide adjustments to the 
caps so that emergency legislation does not cause a sequester 
under the Balanced Budget and Emergency Deficit Control Act. 
This section does provide that the discretionary caps 
established by section 201 of this resolution will be adjusted 
after the enactment of any emergency legislation to hold the 
Appropriations Committee harmless for the cost of the emergency 
legislation.
Conference agreement
      The conference agreement contains no procedural 
provisions regarding the scoring of emergency legislation.

                       Sale of Government Assets

(Sec. 6 of the House resolution; Sec. 206 of the Senate amendment; Sec. 
                    206 of the conference agreement)

      In 1987, the Congress adopted a change in the scoring of 
legislation to provide that the proceeds from assets sales 
should not be taken into account for budget enforcement 
purposes. Each budget resolution since 1986 has contained 
language prohibiting the scoring of savings associated with 
asset sales. In addition, section 257(e) of the Balanced Budget 
and Emergency Deficit Control Act prohibits the scoring of the 
proceeds from asset sales.
House resolution
      Section 6 of the House resolution provides that for the 
purposes of the Budget Act and budget resolutions the proceeds 
from asset sales will be scored.
Senate amendment
      Section 106 of the Senate amendment contains the same 
language as section 6 of the House resolution.
Conference agreement
      The conference agreement contains the House language. The 
conferees are concerned about the long-term budgetary impact of 
asset sales and do not support asset sales that would cost the 
Federal government money in the long run. The conferees believe 
that the Congress should consider adoption of a new scoring 
rule that would take into account the long-term budgetary 
impact of asset sales.
      Subsection (d) of the conference agreement includes 
language providing that loan prepayments and loan asset sales 
should be governed by the terms of the Federal Credit Reform 
Act of 1990. Both the Congressional Budget Office (CBO) and the 
Office of Management and Budget (OMB) currently score proposed 
loan prepayments and loan asset sales under credit reform. The 
conferees believe OMB and CBO have properly scored these 
transactions. The conferees are including this language to make 
it clear that the repeal of the asset sale scoring rule does 
not impact the scoring of loan asset sales or prepayments, 
which will continue to be governed by the Federal Credit Reform 
Act of 1990.

                 Credit Reform and Direct Student Loans

     (Sec. 207 of the Senate amendment; Sec. 207 of the conference 
                               agreement)

      The 1990 Federal Credit Reform Act modified the budgetary 
treatment of Federal credit programs to take into account the 
long-term cost of Federal credit activities. More specifically, 
this law required the cost of direct loans and guaranteed loans 
to be measured by taking the net present value of the cash 
flows over the life of the direct loan or loan guarantee.
House resolution
      The House resolution does not contain procedural 
provisions regarding the scoring of student loans, but section 
13 of the House resolution includes sense of the Congress 
language on the scoring of student loans.
Senate amendment
      Section 207 of the Senate amendment puts the measurement 
of administrative expenses of guaranteed student loans on equal 
footing with legislation that would expand direct student 
lending by the Federal government. More specifically, this 
section provides that for the purposes of Congressional scoring 
the administrative costs for new direct student loans to be 
measured on a net present value basis.
Conference agreement
      The conference agreement contains the Senate provision 
with an amendment. The conference agreement would apply the new 
scoring of administrative costs for all legislation affecting 
student loans.
      The conferees recommend this change to correct a 
disparity that has arisen under the Federal Credit Reform Act 
of 1990 for the scoring of student loans. Currently, the 
administrative costs for direct student loans are measured on a 
cash basis, with the budget reflecting only that year's cost of 
administering the loan. For guaranteed student loans, the 
administrative costs are measured on a net present value basis 
for the entire length of the loan. The result is that direct 
lending appears to be much less expensive than guaranteed 
student lending. Both the Congressional Research Service and 
the Congressional Budget Office have acknowledged the bias that 
this treatment of administrative expenses has created.

              extension of budget act 60-vote enforcement

     (Sec. 208 of the Senate amendment; Sec. 208 of the conference 
                               agreement)

      Under current law, the three-fifths requirement in the 
Senate to waive many of the Budget Act's points of order is 
permanent. The 1995 concurrent resolution on the budget 
provided a 1998 sunset date for the three-fifths waiver 
requirement for many of these points of order.
House resolution
      The House resolution contains no provisions regarding the 
sunset date for super majority points of order in the Senate.
Senate amendment
      Section 208 of the Senate amendment extends the sunset 
date for this three-fifths waiver requirement through 2002. The 
Senate amendment does not affect section 313 of the Budget Act 
(the Byrd rule), which has a permanent requirement for a three-
fifths waiver.
Conference agreement
      The conference agreement contains the Senate provision.

                      repeal of the irs allowance

(Sec. 7 of the House resolution; Sec. 209 of the Senate amendment; Sec. 
                    209 of the conference agreement)

      Section 25 of the 1995 budget resolution (H. Con. Res. 
218) created a $405 million budget authority and outlay 
allowance to fund an Internal Revenue Service (IRS) compliance 
initiative outside the discretionary caps. This section 
provided that the budget resolution's discretionary caps, 
allocations, and aggregates would be revised upward by $405 
million upon the reporting of appropriations legislation that 
fully funded an IRS compliance initiative.
House resolution
      Section 7 of the House resolution restates section 25 of 
H. Con. Res. 218 and provides a $405 million budget authority 
and outlay allowance for the IRS.
Senate amendment
      Section 209 of the Senate amendment repeals this 
allowance and expresses the sense of the Senate concerning the 
Taxpayers Bill of Rights and the priority to be given to 
compliance programs in IRS funding.
Conference agreement
      The conference agreement contains the Senate provision on 
the repeal of the IRS allowance. The conferees are concerned 
about efforts to circumvent the caps and do not believe that 
the IRS should be funded outside the discretionary caps. The 
conferees believe that the IRS compliance initiative should be 
fully funded and the conference agreement assumes funding for 
this initiative in function 800, General Government.
      While the conference agreement does not contain the sense 
of the Senate provisions on taxpayer bills of rights, the 
Senate conferees urge the Senate to pass the taxpayer bill of 
rights to this Congress.

      tax reduction contingent on the balanced budget in the house

                 (Sec. 210 of the conference agreement)

House resolution
      Section 4 of the House resolution contains a 
reconciliation instruction to the House Ways and Means 
Committee to reduce revenues. That instruction assumes 
enactment of the Tax Fairness and Deficit Reduction Act, 
replacement of the one-dollar bill, and the elimination of 
several corporate tax subsidies.
Senate amendment
      The Senate amendment contains a tax reserve fund that 
would accommodate deficit neutral legislation that reduced 
revenues after passage of the reconciliation conference report. 
The amendment also contains a budget surplus allowance that 
makes CBO's ``fiscal dividend'' available after enactment of 
the reconciliation measure for legislation that reduces 
revenues for family tax relief and incentives to stimulate 
savings, investment, job creation, and economic growth.
Conference agreement
      The conference agreement establishes a process for 
certifying a balanced budget before the House takes up a 
reconciliation bill that would reduce taxes. The Congressional 
Budget Office would score all legislation submitted to the 
Budget Committee (or any amendment by the Rules Committee self-
executed into the bill) and the economic dividend that would 
result from a balanced budget. On the basis of a CBO estimate 
of a balanced budget, the Chairman of the Budget Committee 
would certify a balanced budget.
      If the Chairman certifies a balanced budget, then the 
revenue floor in the budget resolution would be reduced. In the 
absence of such certification, the reconciliation bill would be 
subject to a point of order under Section 311 of the Budget Act 
because it would cause revenues to be less than revenue floor 
established in the budget resolution.
                     Exercise of Rulemaking Powers

     (Sec. 210 of the Senate amendment; Sec. 211 of the conference 
                               agreement)

      The Constitution reserves to each of the Houses the 
authority to determine its own rules. When Congress adopts new 
rules or procedures in legislation, the Congress frequently 
includes a provision stating that the changes represent an 
exercise of the rulemaking authority of the House of 
Representatives and the Senate and the two Houses reserve their 
right to modify their rules at anytime. For example, section 
904(a) of the Congressional Budget and Impoundment Control Act 
of 1974 provides a provision reserving the rulemaking authority 
of the House of Representatives and the Senate.
House resolution
      The House resolution contains no provision regarding the 
rulemaking authority of the Houses.
Senate amendment
      Section 210 of the Senate amendment states that the 
procedural provisions in the amendment are made in recognition 
of the Constitutional right of the Senate to make its own rules 
and to change those rules at any time in an appropriate manner.
Conference agreement
      The conference agreement contains the Senate provision 
with an amendment to expand the application of the language to 
the House of Representatives.

                        Miscellaneous Provisions

                       sense of congress language

  (Secs. 5 and 8 through 14 of the House resolution, title III of the 
      Senate amendment, and title III of the conference agreement)

House resolution
      Section 5 of the House resolution includes a statement 
that Congress will re-examine the reductions in the 
agricultural programs for fiscal years 1999 and 2000 unless: 
1998 agricultural land values are at least 95 percent of their 
value today, regulatory relief for the agriculture sector is 
enacted, certain tax relief is enacted, and trade agreements 
are implemented that result in lower subsidies and fewer import 
barriers.
      The House resolution includes provisions that express the 
sense of Congress that: baseline budgeting should be replaced 
with a form of budgeting that requires full justification and 
analysis of proposals and that maximizes Congressional 
accountability for public spending (section 8); that Congress 
should study alternative approaches to budgeting for 
emergencies (section 9); that Sallie Mae should be restructured 
as a private corporation (section 10); that House rule XLIX 
should be repealed and the extension of the public debt should 
be set at levels and at such durations as to ensure a balanced 
budget by 2002 (section 12); that the costs of direct student 
loans should be the net present value of the disbursement, 
principal repayment, and other payments and costs including 
administrative expenses (section 13); and that a commission 
should be established to make recommendations concerning the 
long-term solvency of the military and civil retirement funds 
(section 14).
      In addition, the House resolution includes one provision 
expressing the sense of the House of Representatives regarding 
the payment of the debt (section 11).
Senate amendment
      Title III of the Senate amendment includes seven 
provisions that express the sense of the Congress that: the 
Federal government should develop a uniform Federal accounting 
system (section 305), that 90 percent of the benefits of any 
tax cuts should be targeted to working families earning less 
than $100,000 annually (section 306), that a bipartisan 
commission should be established to make recommendations 
concerning the solvency of Medicare in the short and long-term 
(section 307), that the health care needs of pregnant women and 
children should receive priority under Medi- caid reform 
(section 309), that funding for brain research should receive 
priority in furtherance of the goals of the Decade of the Brain 
(section 313), that Congress should consider the Independent 
Budget for Veterans Affairs (section 314), and that the use of 
campaign funds or privately-donated funds should be prohibited 
for expenses in relation to sexual harassment suits (section 
317).
      In addition, Title III of the Senate amendment contains 
22 sense of the Senate provisions: on program terminations 
(section 301), on returning programs to the States (section 
302), on encouraging turning certain Federal functions over to 
the private sector (section 303), on the creation of a non-
partisan commission on the Consumer Price Index (section 304), 
on the distribution of agriculture savings (section 308), on 
the continued non-deductibility of lobbying expenses (section 
310), on the revision of the expatriate tax (sections 311 and 
319), on Medicare fraud and abuse (section 312), on funding to 
States for Motor Voter expenses (section 315), on the use of 
Presidential Election Campaign funds for expenses in relation 
to sexual harassment suits (section 316), on Impact Aid 
(section 318), on Stafford student loans (section 320), on 
children's nutritional health (section 321), on law enforcement 
and the Crime Trust Fund (section 322), on long-term health 
care (section 323), on the sale of power marketing 
administrations (section 324), on overhead expenses in the 
Department of Defense (section 325), on the essential air 
service (section 326), on renewable energy research (section 
327), and on reductions in student loans (section 328). In 
addition, section 209 was amended to include sense of the 
Senate language concerning funding for tax compliance efforts 
and enactment of the ``Taxpayers Bill of Rights II.''
Conference agreement
      Title III of the Conference agreement includes three 
separate provisions that express the sense of the Congress 
that: the committees of jurisdiction, in meeting the levels in 
the resolution, should give priority to proposals that 
identify, eliminate, and recover funds lost due to fraud and 
abuse in the medicare system (section 301); that Sallie Mae be 
restructured as a private corporation (section 302); and that 
the extension of the public debt limit be set at such levels 
and for such duration as to ensure the budget be balanced by 
2002 (section 303).
      Section 304 of the conference agreement also expresses 
the sense of the Congress that the aggregates and functional 
levels in the budget resolution assume: that Federal programs 
should be restructured; that Federal programs should be 
reviewed to determine whether they would be more appropriately 
the responsibility of the States; that Congress should examine 
Federal functions to determine those that would be more 
efficiently and effectively performed by the private sector; 
that Congress has a responsibility to future generations to 
balance the budget and to pay down the debt; that funding for 
nutrition programs may be reduced without compromising the 
nutritional health and well-being of the program recipients; 
and that priority should be given to funding for science and 
basic and applied research.
      The Conference agreement includes four separate sections 
that express the sense of the Senate: that the budget 
resolution assumes that the taxes will be restructured to 
benefit working families (section 305); that the Senate 
Agriculture Committee should provide no more than 20 percent of 
the savings under Reconciliation from the commodity programs 
(section 306); that a bipartisan commission should be 
established immediately to make recommendations concerning the 
short-term solvency of the medicare system (section 308); and 
that the health care needs of pregnant women and children 
should receive priority under Medicaid reform (section 309).
      In addition, section 307 expresses the sense of the 
Senate that the aggregates and functions levels in the budget 
resolution assume: that the Federal government should establish 
a uniform accounting system, that the expatriate tax should be 
revised and any savings should go to deficit reduction, that 
research on brain diseases and disorders should be funded in 
furtherance of the goals of the Decade of the Brain, that the 
essential air service should receive sufficient funding to 
continue to provide air service to small rural communities, 
that funds should be made available to the States to reimburse 
for expenses in implementing Motor Voter, and that a non-
partisan commission should be established to examine and make 
recommendations concerning the accuracy of the methodology used 
to determine the Consumer Price Index.
      The Conference agreement also includes five separate 
provisions that express the sense of the House of 
Representatives that: reductions in agricultural programs in 
fiscal years 1999 and 2000 the House of Representatives shall 
be re-examined unless certain conditions are met (section 310); 
that baseline budgeting should be replaced with a method that 
requires justification and analysis of proposals and that 
maximizes Congressional accountability (section 311); that a 
commission should be established to study and make 
recommendations to ensure the long-term solvency of the 
military and civil service retirement funds (section 312); that 
rule XLIX of the rules of the House of Representatives should 
be repealed (section 313); and that an alternative approach to 
the scoring of emergencies should be studied (section 314).

                     Display of Levels and Amounts

House resolution
      The House resolution contains all of the displays of 
levels and amounts required by it under section 301(a) of the 
Congressional Budget Act, and includes a display of new 
secondary loan guarantee commitments within the functional 
levels and amounts. The House resolution contains no other 
alternative displays.
Senate amendment
      The Senate amendment contains all of the displays of 
levels and amounts required under section 301(a) of the 
Congressional Budget Act, including displays the levels of 
Social Security revenues and outlays, as required by paragraph 
(6) for enforcement purposes in the Senate. As authorized by 
section 301(b)(5), of the Senate amendment displays the amounts 
of the increase in the public debt subject to limitation. For 
informational purposes, the Senate amendment also includes a 
display of the gross interest on the public debt consistent 
with the levels of net interests shown in functional category 
900 and a display of the aggregate levels and functional 
amounts without including the Hospital Insurance Trust Fund.
Conference agreement
      The conference agreement includes all of the required 
displays of levels and amounts, including those of Social 
Security outlays and revenues. The agreement also includes the 
amounts of the increase in the public debt subject to limit. 
With respect to the informational displays, the conference 
agreement contains the display of the gross interest on the 
public debt consistent with the levels of net interest in 
function 900. The conference agreement recedes to the House 
concerning the informational display of levels and amounts 
without the Hospital Insurance trust fund amounts and the House 
recedes to the Senate on the display of secondary loan 
guarantee commitments.
                                   John R. Kasich,
                                   Dave Hobson,
                                   Bob Walker,
                                   Jim Kolbe,
                                   Christopher Shays,
                                   Wally Herger,
                                   Wayne Allard,
                                   Bob Franks,
                                   Steve Largent,
                                   Sue Myrick,
                                   Mike Parker,
                                 Managers on the Part of the House.

                                   Pete Domenici,
                                   Chuck Grassley,
                                   Don Nickles,
                                   Trent Lott,
                                   Hank Brown,
                                   Slade Gorton,
                                   Judd Gregg,
                                Managers on the Part of the Senate.