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108th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 108-498
======================================================================
CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2005
_______
May 19 (legislative day, May 18), 2004.--Ordered to be printed
_______
Mr. Nussle, from the committee of conference, submitted the following
CONFERENCE REPORT
[To accompany S. Con. Res. 95]
The committee of conference on the disagreeing votes of
the two Houses on the amendment of the House to the concurrent
resolution (S. Con. Res. 95), setting forth the congressional
budget for the United States Government for fiscal year 2005
and including the appropriate budgetary levels for fiscal years
2006 through 2009, having met, after full and free conference,
have agreed to recommend and do recommend to their respective
Houses as follows:
That the Senate recede from its disagreement to the
amendment of the House and agree to the same with an amendment
as follows:
In lieu of the matter proposed to be inserted by the
House amendment, insert the following:
SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2005.
(a) Declaration.--Congress declares that this resolution is
the concurrent resolution on the budget for fiscal year 2005 as
authorized by section 301 of the Congressional Budget Act of
1974 (2 U.S.C. 632).
(b) Table of Contents.--The table of contents for this
concurrent resolution is as follows:
Sec. 1. Concurrent resolution on the budget for fiscal year 2005.
TITLE I--LEVELS AND AMOUNTS
Sec. 101. Recommended levels and amounts for the budget year.
Sec. 102. Social security.
Sec. 103. Major functional categories.
TITLE II--RECONCILIATION
Subtitle A--Senate
Sec. 201. Reconciliation in the Senate.
Subtitle B--House of Representatives
Sec. 211. Reconciliation in the House of Representatives.
TITLE III--RESERVE FUNDS AND ADJUSTMENTS
Subtitle A--Reserve Funds
Sec. 301. Deficit neutral reserve fund for health insurance for the
uninsured.
Sec. 302. Deficit neutral reserve fund for higher education.
Sec. 303. Deficit neutral reserve fund for Montgomery GI Bill benefits.
Sec. 304. Deficit neutral reserve fund for Postal Service reform.
Sec. 305. Deficit neutral reserve fund for the Family Opportunity Act.
Sec. 306. Deficit neutral reserve fund for eliminating survivor benefit
plan-social security offset.
Sec. 307. Reserve fund for pending legislation.
Subtitle B--Adjustments With Respect to Discretionary Spending
Sec. 311. Adjustment for surface transportation.
Sec. 312. Adjustment for wildland fire suppression.
Sec. 313. Mechanism for adjusting appropriate discretionary levels.
TITLE IV--BUDGET ENFORCEMENT
Subtitle A--Enforcement
Sec. 401. Restrictions on advance appropriations.
Sec. 402. Emergency legislation.
Sec. 403. Exemption of overseas contingency operations.
Sec. 404. Discretionary spending limits in the Senate.
Sec. 405. Adjustments to reflect changes in concepts and definitions.
Sec. 406. Application and effect of changes in allocations and
aggregates.
Sec. 407. Pay-as-you-go point of order in the Senate.
Sec. 408. Compliance with section 13301 of the Budget Enforcement Act of
1990.
Subtitle B--Report Submissions
Sec. 411. Submission of report on defense savings.
Sec. 412. Submission of report on homeland security.
Subtitle C--Exercise of Rulemaking Powers
Sec. 421. Exercise of rulemaking powers.
TITLE V--REQUIRED LEVELS AND AMOUNTS FOR OUTYEARS
Sec. 501. Recommended levels and amounts.
Sec. 502. Social security.
Sec. 503. Major functional categories.
TITLE VI--SENSE OF THE SENATE AND SENSE OF THE HOUSE
Subtitle A--Sense of the Senate
Sec. 601. Sense of the Senate on budget process reform.
Sec. 602. Sense of the Senate on budget process reform with regard to
the creation of bipartisan commissions to combat waste, fraud,
and abuse and to promote spending efficiency.
Sec. 603. Sense of the Senate on the relationship between annual deficit
spending and increases in debt service costs.
Sec. 604. Sense of the Senate regarding the costs of the medicare
prescription drug program.
Sec. 605. Sense of the Senate on returning stability to payments under
medicare physician fee schedule.
Sec. 606. Sense of the Senate supporting funding restoration for
agriculture research and extension.
Sec. 607. Sense of the Senate concerning a national animal
identification program.
Sec. 608. Sense of the Senate regarding contributions to the global fund
to fight aids, tuberculosis, and malaria.
Sec. 609. Sense of the Senate concerning child nutrition funding.
Sec. 610. Sense of the Senate regarding compensation for exposure to
toxic substances at the Department of Energy.
Sec. 611. Sense of the Senate regarding tax incentives for certain rural
communities.
Sec. 612. Sense of the Senate concerning summer food pilot projects.
Sec. 613. Sense of the Senate regarding closing the ``tax gap''.
Subtitle B--Sense of the House
Sec. 621. Sense of the House on entitlement reform.
Subtitle C--Sense of Congress
Sec. 631. Sense of Congress on spending accountability.
TITLE I--LEVELS AND AMOUNTS
SEC. 101. RECOMMENDED LEVELS AND AMOUNTS FOR THE BUDGET YEAR.
The following budgetary levels are appropriate for fiscal
year 2005:
(1) Federal revenues.--For purposes of the
enforcement of this resolution--
(A) The recommended level of Federal
revenue for fiscal year 2005 is
$1,454,637,000,000.
(B) The amount by which the aggregate level
of Federal revenues should be changed for
fiscal year 2005 is -$28,194,000,000.
(2) New budget authority.--For purposes of the
enforcement of this resolution, the appropriate level
of total new budget authority for fiscal year 2005 is
$2,005,068,000,000.
(3) Budget outlays.--For purposes of the
enforcement of this resolution, the appropriate level
of total budget outlays for fiscal year 2005 is
$1,996,028,000,000.
(4) Deficit.--For purposes of the enforcement of
this resolution, the amount of the deficit for fiscal
year 2005 is $541,391,000,000.
(5) Debt subject to limit.--Pursuant to section
301(a)(5) of the Congressional Budget Act of 1974, the
appropriate level of the public debt for fiscal year
2005 is $8,073,946,000,000.
(6) Debt held by the public.--The appropriate level
of the debt held by the public for fiscal year 2005 is
$4,762,355,000,000.
SEC. 102. SOCIAL SECURITY.
(a) Social Security Revenues.--For purposes of Senate
enforcement under sections 302 and 311 of the Congressional
Budget Act of 1974, the amount of revenues of the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund for fiscal year 2005 is
$572,309,000,000.
(b) Social Security Outlays.--For purposes of Senate
enforcement under sections 302 and 311 of the Congressional
Budget Act of 1974, the amount of outlays of the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund for fiscal year 2005 is
$396,157,000,000.
(c) Social Security Administrative Expenses.--In the
Senate, the amounts of new budget authority and budget outlays
of the Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund for administrative
expenses for fiscal year 2005 are $4,249,000,000 in new budget
authority and $4,264,000,000 in outlays.
SEC. 103. MAJOR FUNCTIONAL CATEGORIES.
Congress determines and declares that the appropriate
levels of new budget authority and budget outlays for fiscal
year 2005 for each major functional category are:
(1) National Defense (050): $472,157,000,000 in new
budget authority and $474,298,000,000 in outlays.
(2) International Affairs (150): $28,920,000,000 in
new budget authority and $32,795,000,000 in outlays.
(3) General Science, Space, and Technology (250):
$23,928,000,000 in new budget authority and
$23,278,000,000 in outlays.
(4) Energy (270): $3,027,000,000 in new budget
authority and $1,380,000,000 in outlays.
(5) Natural Resources and Environment (300):
$32,128,000,000 in new budget authority and
$31,418,000,000 in outlays.
(6) Agriculture (350): $21,797,000,000 in new
budget authority and $21,035,000,000 in outlays.
(7) Commerce and Housing Credit (370):
$9,284,000,000 in new budget authority and
$3,258,000,000 in outlays.
(8) Transportation (400): $71,789,000,000 in new
budget authority and $68,560,000,000 in outlays.
(9) Community and Regional Development (450):
$13,612,000,000 in new budget authority and
$17,386,000,000 in outlays.
(10) Education, Training, Employment, and Social
Services (500): $92,818,000,000 in new budget authority
and $90,716,000,000 in outlays.
(11) Health (550): $252,426,000,000 in new budget
authority and $250,025,000,000 in outlays.
(12) Medicare (570): $287,878,000,000 in new budget
authority and $288,987,000,000 in outlays.
(13) Income Security (600): $339,157,000,000 in new
budget authority and $345,660,000,000 in outlays.
(14) Social Security (650): $15,214,000,000 in new
budget authority and $15,214,000,000 in outlays.
(15) Veterans Benefits and Services (700):
$70,832,000,000 in new budget authority and
$68,855,000,000 in outlays.
(16) Administration of Justice (750):
$41,945,000,000 in new budget authority and
$41,773,000,000 in outlays.
(17) General Government (800): $17,383,000,000 in
new budget authority and $17,975,000,000 in outlays.
(18) Net Interest (900): $270,436,000,000 in new
budget authority and $270,436,000,000 in outlays.
(19) Allowances (920): -$7,158,000,000 in new
budget authority and -$14,516,000,000 in outlays.
(20) Undistributed Offsetting Receipts (950):
-$52,505,000,000 in new budget authority and
-$52,505,000,000 in outlays.
TITLE II--RECONCILIATION
Subtitle A--Senate
SEC. 201. RECONCILIATION IN THE SENATE.
(a) Tax Relief.--The Committee on Finance of the Senate
shall report a reconciliation bill not later than September 30,
2004, that consists of changes in laws within its jurisdiction
sufficient to reduce revenues by not more than $22,900,000,000
and to increase outlays by not more than $4,600,000,000 for the
period of fiscal years 2005 through 2009.
(b) Increase in Statutory Debt Limit.--The Committee on
Finance of the Senate shall report a reconciliation bill not
later than September 10, 2004, that consists solely of changes
in laws within its jurisdiction to increase the statutory debt
limit by $689,946,000,000.
Subtitle B--House of Representatives
SEC. 211. RECONCILIATION IN THE HOUSE OF REPRESENTATIVES.
(a) Tax Relief.--The Committee on Ways and Means of the
House shall report a reconciliation bill not later than
September 30, 2004, that consists of changes in laws within its
jurisdiction sufficient to reduce revenues by not more than
$22,900,000,000 and to increase outlays by not more than
$4,600,000,000 for the period of fiscal years 2005 through
2009.
(b) Conforming Adjustment.--Upon the reporting of a
recommendation pursuant to section 211(a), or an amendment
thereto, that shall be deemed to have complied with the
directions under section 211 of this resolution by virtue of
section 310(c) of the Congressional Budget Act of 1974, the
chairman of the Committee on the Budget of the House may file
with the House appropriately revised allocations, functional
levels, and aggregates to carry out this subsection.
TITLE III--RESERVE FUNDS AND ADJUSTMENTS
Subtitle A--Reserve Funds
SEC. 301. DEFICIT NEUTRAL RESERVE FUND FOR HEALTH INSURANCE FOR THE
UNINSURED.
(a) Senate.--If the Committee on Finance or the Committee
on Health, Education, Labor, and Pensions of the Senate reports
a bill or joint resolution, or an amendment thereto is offered
or a conference report thereon is submitted, that provides
health insurance or expands access to care for the uninsured
(including a measure providing for tax deductions for the
purchase of health insurance or other measures and including
legislation to reallocate and maintain expiring SCHIP funds
rather than allowing such funds to revert to the Treasury),
increases access to health insurance through lowering costs,
and does not increase the costs of current health insurance
coverage, the chairman of the Committee on the Budget of the
Senate may revise allocations of new budget authority and
outlays, the revenue aggregates, and other appropriate
aggregates to reflect such legislation, to the extent that such
legislation would not increase the deficit for fiscal year 2005
and for the period of fiscal years 2005 through 2009.
(b) House.--In the House, if legislation is reported, or if
an amendment thereto is offered or a conference report thereon
is submitted, that provides health insurance for the uninsured,
the chairman of the Committee on the Budget may revise the
allocations for that committee and appropriate aggregates to
take into account the budgetary effects of such measure for
that purpose, to the extent the measure would not increase the
deficit for fiscal year 2005 and for the period of fiscal years
2005 through 2009.
SEC. 302. DEFICIT NEUTRAL RESERVE FUND FOR HIGHER EDUCATION.
(a) In General.--If the Committee on Health, Education,
Labor, and Pensions of the Senate or the Committee on Education
and Workforce in the House reports a bill or joint resolution,
or if an amendment thereto is offered or a conference report
thereon is submitted, that reauthorizes the Higher Education
Act of 1965, the appropriate chairman of the Committee on the
Budget may revise the allocations for that committee and
appropriate aggregates to take into account the budgetary
effects of such measure for that purpose, to the extent the
measure would not increase the deficit for fiscal year 2005 and
for the period of fiscal years 2005 through 2009.
(b) Sense of Senate.--It is the sense of the Senate that
this resolution contemplates that--
(1) the provisions necessary to achieve the deficit
neutrality in subsection (a) may be offered as
amendments on the Senate floor;
(2) the Committee on Health, Education, Labor, and
Pensions will not be limited to spending reductions
within its committee's jurisdiction to satisfy the
requirements in subsection (a) in such an amendment;
and
(3) the committee may report a bill with up to
$5,000,000,000 in new spending for higher education
programs provided that provisions necessary to achieve
deficit neutrality may be offered as amendments on the
Senate floor.
SEC. 303. DEFICIT NEUTRAL RESERVE FUND FOR MONTGOMERY GI BILL BENEFITS.
If the Committee on Armed Services of the Senate or the
appropriate committee of the House reports a bill or joint
resolution, or an amendment thereto is offered or a conference
report thereon is submitted, that increases benefit levels
under the Montgomery GI Bill for members of the Selected
Reserves, the appropriate chairman of the Committee on the
Budget may revise the allocations for that committee and
appropriate aggregates to take into account the budgetary
effects of such measure for that purpose, to the extent the
measure would not increase the deficit for fiscal year 2005 and
for the period of fiscal years 2005 through 2009.
SEC. 304. DEFICIT NEUTRAL RESERVE FUND FOR POSTAL SERVICE REFORM.
If the Committee on Governmental Affairs of the Senate or
the Committee on Government Reform of the House reports a bill
or joint resolution, or an amendment thereto is offered or a
conference report thereon is submitted, that reforms the United
States Postal Service to improve its long-term economic
viability and provides for increased financial transparency,
the appropriate chairman of the Committee on the Budget may
revise the allocations for that committee and appropriate
aggregates to take into account the budgetary effects of such
measure for that purpose, to the extent the measure would not
increase the deficit for fiscal year 2005 and for the period of
fiscal years 2005 through 2009.
SEC. 305. DEFICIT NEUTRAL RESERVE FUND FOR THE FAMILY OPPORTUNITY ACT.
If the Committee on Energy and Commerce of the House or the
Committee on Finance of the Senate reports legislation, or if
an amendment thereto is offered or a conference report thereon
is submitted, that provides medicaid coverage for children with
special needs (the Family Opportunity Act), the appropriate
chairman of the Committee on the Budget may revise the
allocations for that committee and appropriate aggregates to
take into account the budgetary effects of such measure for
that purpose, to the extent the measure would not increase the
deficit for fiscal year 2005 and for the period of fiscal years
2005 through 2009.
SEC. 306. DEFICIT NEUTRAL RESERVE FUND FOR ELIMINATING SURVIVOR BENEFIT
PLAN-SOCIAL SECURITY OFFSET.
If the Committee on Armed Services of the House or Senate
reports a bill or joint resolution, or an amendment thereto is
offered or a conference report thereon is submitted, that
increases the minimum Survivor Benefit Plan basic annuity for
surviving spouses age 62 and older, the appropriate chairman of
the Committee on the Budget may revise the allocations for that
committee and appropriate aggregates to take into account the
budgetary effects of such measure for that purpose, to the
extent the measure would not increase the deficit for fiscal
year 2005 and for the period of fiscal years 2005 through 2009.
SEC. 307. RESERVE FUND FOR PENDING LEGISLATION.
In the House, for any bill that provides for the safe
importation of FDA-approved prescription drugs or places limits
on medical malpractice litigation, that has passed the House in
the first session of the 108th Congress and, after the date of
adoption of this concurrent resolution, is enacted into law,
the chairman of the Committee on the Budget may make the
appropriate adjustments in the allocations and aggregates to
reflect any resulting savings from any such measure.
Subtitle B--Adjustments With Respect to Discretionary Spending
SEC. 311. ADJUSTMENT FOR SURFACE TRANSPORTATION.
(a) In General.--If the Committee on Transportation and
Infrastructure of the House or the Committee on Environment and
Public Works, the Committee on Banking, Housing, and Urban
Affairs, or the Committee on Commerce, Science, and
Transportation of the Senate reports a bill or joint
resolution, or if an amendment thereto is offered or a
conference report thereon is submitted, that provides new
budget authority for the budget accounts or portions thereof in
the highway and transit categories as defined in subparagraphs
(B) and (C) of section 250(c)(4) of the Balanced Budget and
Emergency Deficit Control Act of 1985 in excess of--
(1) for fiscal year 2005: $42,657,000,000;
(2) for fiscal year 2006: $43,635,000,000;
(3) for fiscal year 2007: $45,709,000,000;
(4) for fiscal year 2008: $46,945,000,000; or
(5) for fiscal year 2009: $47,732,000,000;
the appropriate chairman of the Committee on the Budget may
revise the appropriate budget aggregates and increase the
allocation of new budget authority to such committee for fiscal
year 2005 and for the period of fiscal years 2005 through 2009
to the extent such excess is offset by a reduction in mandatory
outlays from the Highway Trust Fund or an increase in receipts
appropriated to such fund (for the applicable fiscal year)
caused by such legislation or any previously enacted
legislation. In the Senate, any increase in receipts shall be
reported from the Committee on Finance.
(b) Adjustment for Outlays.--For fiscal year 2005, in the
House and the Senate, if a bill or joint resolution is
reported, or if an amendment thereto is offered or a conference
report thereon is submitted, that changes obligation
limitations such that the total limitations are in excess of
$41,204,000,000 for fiscal year 2005 for programs, projects,
and activities within the highway and transit categories as
defined in subparagraphs (B) and (C) of sections 250(c)(4) of
the Balanced Budget and Emergency Deficit Control Act of 1985,
and if legislation has been enacted that satisfies the
conditions set forth in subsection (a) for such fiscal year,
the appropriate chairman of the Committee on the Budget may
increase the allocation of outlays and appropriate aggregates
for such fiscal year for the committee reporting such measure
by the amount of outlays that corresponds to such excess
obligation limitations, but not to exceed the amount of such
excess that was offset pursuant to subsection (a).
SEC. 312. ADJUSTMENT FOR WILDLAND FIRE SUPPRESSION.
(a) Findings.--Congress makes the following findings:
(1) Due to the expansion of the wildland urban
interface, severe drought conditions in many regions of
the country, and the poor health of the Nation's
forests and rangelands, the Forest Service and the
Department of the Interior regularly spend more than
the amount appropriated for fire suppression, and then
borrow from other accounts to pay for fire suppression.
(2) This borrowing has a negative effect on many
Forest Service and Department of the Interior programs.
(3) This resolution provides an amount equal to the
10-year average for fire suppression in fiscal year
2005.
(4) The Forest Service and the Department of the
Interior should address cost containment within the
fire suppression account, and report to Congress
regarding how funds appropriated pursuant to this
section are used.
(b) Sense of Congress.--It is the sense of Congress that
the adjustment authorized by this section shall only be made
if--
(1) the wildland fire suppression accounts in the
Interior Appropriations bill are funded at the 10-year
average;
(2) there are insufficient funds in such accounts;
and
(3) the current fire season is of sufficient
severity to require appropriations in excess of the
base amount.
(c) Cap Adjustment.--
(1) Definition.--For this subsection, the term
``base amount'' refers to the average of the
obligations of the 10 fiscal years preceding the
current year for wildfire suppression in the Forest
Service and in the Department of the Interior,
calculated by the Director of the Congressional Budget
Office in consultation with the chairmen of the
Committees on the Budget and Appropriations. The
Director of the Congressional Budget Office shall
provide such information for fiscal year 2005 in a
letter to the chairmen of such committees.
(2) Adjustments for fiscal year 2005.--If any bill,
joint resolution, amendment, or conference report
provides new budget authority for wildland fire
suppression in fiscal year 2005 that would cause the
level of total new budget authority for wildland fire
suppression to exceed the base amount for such fiscal
year, then the chairman of the Committee on the Budget
may adjust the appropriate allocations and other
budgetary levels by the amount of excess new budget
authority provided by that measure for that purpose
(and the outlays flowing therefrom), but the adjustment
for new budget authority may not exceed--
(A) for the Forest Service for fiscal year
2005, $400,000,000; and
(B) for the Department of the Interior for
fiscal year 2005, $100,000,000.
(3) Fiscal year 2004.--
(A) Senate.--In the Senate, if any bill,
joint resolution, amendment, or conference
report provides new budget authority for
wildland fire suppression in fiscal year 2004,
then the chairman of the Committee on the
Budget may determine that such amount of new
budget authority (and outlays flowing
therefrom) shall not be counted for the
purposes of the Congressional Budget Act of
1974 and this resolution, if such amounts for
that fiscal year do not exceed the following
levels of new budget authority--
(i) for the Forest Service,
$400,000,000; and
(ii) for the Department of the
Interior, $100,000,000.
(B) House.--In the House, if any bill,
joint resolution, amendment, or conference
report provides new budget authority for
wildland fire suppression in fiscal year 2004,
then the chairman of the Committee on the
Budget may adjust the appropriate allocations
and other budgetary levels by the amount of new
budget authority provided by that measure for
that purpose (and the outlays flowing
therefrom), but the adjustment for new budget
authority may not exceed--
(i) for the Forest Service,
$400,000,000; and
(ii) for the Department of the
Interior, $100,000,000.
SEC. 313. MECHANISM FOR ADJUSTING APPROPRIATE DISCRETIONARY LEVELS.
(a) Section 504 Compliance.--In the House and the Senate,
whenever the Committee on Appropriations reports the first bill
or joint resolution making regular appropriations for fiscal
year 2005, the appropriate chairman of the Committee on the
Budget may revise the committee's allocation in this resolution
by $4,630,000,000 in new budget authority and $14,240,000,000
in outlays and make conforming adjustments to other levels in
this resolution.
(b) Funding for Project Bioshield.--In the House and the
Senate, on the same day that the Committee on Appropriations
reports as provided in subsection (a), the appropriate chairman
of the Committee on the Budget may also revise the allocations
to the Committee on Appropriations, discretionary spending
limits, and other appropriate levels and limits in this
resolution by $2,528,000,000 in new budget authority and
$276,000,000 in outlays for Project Bioshield for fiscal year
2005.
TITLE IV--BUDGET ENFORCEMENT
Subtitle A--Enforcement
SEC. 401. RESTRICTIONS ON ADVANCE APPROPRIATIONS.
(a) Senate.--
(1) Point of order.--Except as provided in
paragraph (2), it shall not be in order in the Senate
to consider any bill, joint resolution, motion,
amendment, or conference report that would provide an
advance appropriation.
(2) Exception.--An advance appropriation may be
provided for fiscal year 2006 for programs, projects,
activities, or accounts identified in the joint
explanatory statement of managers accompanying this
resolution under the heading ``Accounts Identified for
Advance Appropriations'' in an aggregate amount not to
exceed $23,158,000,000 in new budget authority.
(3) Waiver and appeals.--
(A) Waiver.--In the Senate, paragraph (1)
may be waived or suspended only by an
affirmative vote of three-fifths of the
Members, duly chosen and sworn. An affirmative
vote of three-fifths of the Members of the
Senate, duly chosen and sworn, shall be
required to sustain an appeal of the ruling of
the Chair on a point of order raised under
paragraph (1).
(B) Procedure.--A point of order under
paragraph (1) may be raised by a Senator as
provided in section 313(e) of the Congressional
Budget Act of 1974.
(C) Conference report.--If a point of order
is sustained under paragraph (1) against a
conference report in the Senate, the report
shall be disposed of as provided in section
313(d) of the Congressional Budget Act of 1974.
(4) Advance appropriation.--In this subsection, the
term ``advance appropriation'' means any discretionary
new budget authority in a bill or joint resolution
making general appropriations or continuing
appropriations for fiscal year 2005 that first becomes
available for any fiscal year after 2005.
(5) Repeal.--Section 501 of H. Con. Res. 95 (108th
Congress) is repealed.
(b) House.--
(1) In general.--(A) In the House, except as
provided in paragraph (2), an advance appropriation may
not be reported in a bill or joint resolution making a
general appropriation or continuing appropriation, and
may not be in order as an amendment thereto.
(B) Managers on the part of the House may not agree
to a Senate amendment that would violate subparagraph
(A) unless specific authority to agree to the amendment
first is given by the House by a separate vote with
respect thereto.
(2) Limitation.--In the House, an advance
appropriation may be provided for fiscal year 2006 for
programs, projects, activities or accounts identified
in the joint explanatory statement of managers
accompanying this resolution under the heading
``Accounts Identified for Advance Appropriations, Part
A'' in an aggregate amount not to exceed
$23,158,000,000 in new budget authority, and an advance
appropriation may be provided for fiscal year 2007 for
any program identified in such statement under the
heading ``Accounts Identified for Advance
Appropriations, Part B''.
(3) Definition.--In this subsection, the term
``advance appropriation'' means any discretionary new
budget authority in a bill or joint resolution making
general appropriations or continuing appropriations for
fiscal year 2005 that first becomes available for any
fiscal year after 2005.
SEC. 402. EMERGENCY LEGISLATION.
(a) Exemption of Emergency Provisions.--
(1) In general.--In the House and Senate, if a
bill, joint resolution, amendment, or conference report
designates a provision as an emergency requirement
pursuant to this section, then the new budget
authority, new entitlement authority, outlays, and
receipts resulting therefrom shall not count for
purposes of sections 302, 303, 311, and 401 of the
Congressional Budget Act of 1974 or any concurrent
resolution on the budget and, in the Senate only, shall
not count for the purpose of sections 404 (relating to
discretionary spending limits in the Senate) and 407
(relating to the pay-go requirement) of this
resolution.
(2) Designations.--
(A) Guidance.--If a provision of
legislation is designated as an emergency
requirement under paragraph (1), the committee
report and any joint explanatory statement of
managers accompanying that legislation shall
include an explanation of the manner in which
the provision meets the criteria in
subparagraph (B). If such legislation is to be
considered by the House without being reported,
then the committee shall cause the explanation
to be published in the Congressional Record in
advance of floor consideration.
(B) Criteria.--
(i) In general.--Any such provision
is an emergency requirement if the
underlying situation poses a threat to
life, property, or national security
and is--
(I) sudden, quickly coming
into being, and not building up
over time;
(II) an urgent, pressing,
and compelling need requiring
immediate action;
(III) subject to clause
(ii), unforeseen,
unpredictable, and
unanticipated; and
(IV) not permanent,
temporary in nature.
(ii) Unforeseen.--An emergency that
is part of an aggregate level of
anticipated emergencies, particularly
when normally estimated in advance, is
not unforeseen.
(b) Point of Order in the Senate.--
(1) Definitions.--In this subsection, the terms
``direct spending'', ``receipts'', and ``appropriations
for discretionary accounts'' means any provision of a
bill, joint resolution, amendment, motion, or
conference report that affects direct spending,
receipts, or appropriations as those terms have been
defined and interpreted for purposes of the Balanced
Budget and Emergency Deficit Control Act of 1985.
(2) Point of order.--When the Senate is considering
a bill, resolution, amendment, motion, or conference
report, if a point of order is made by a Senator
against an emergency designation in that measure, that
provision making such a designation shall be stricken
from the measure and may not be offered as an amendment
from the floor.
(3) Waiver and appeal.--Paragraph (2) may be waived
or suspended in the Senate only by an affirmative vote
of three-fifths of the Members, duly chosen and sworn.
An affirmative vote of three-fifths of the Members of
the Senate, duly chosen and sworn, shall be required to
sustain an appeal of the ruling of the Chair on a point
of order raised under this section.
(4) Definition of an emergency designation.--For
purposes of paragraph (2), a provision shall be
considered an emergency designation if it designates
any item as an emergency requirement pursuant to this
section.
(5) Form of the point of order.--A point of order
under paragraph (2) may be raised by a Senator as
provided in section 313(e) of the Congressional Budget
Act of 1974.
(6) Conference reports.--If a point of order is
sustained under paragraph (2) against a conference
report, the report shall be disposed of as provided in
section 313(d) of the Congressional Budget Act of 1974.
(7) Exception for defense spending.--Paragraph (2)
shall not apply against an emergency designation for a
provision making discretionary appropriations in the
defense category.
(c) Repeal.--Section 502 of H. Con. Res. 95 (108th
Congress) is repealed.
SEC. 403. EXEMPTION OF OVERSEAS CONTINGENCY OPERATIONS.
In the House and Senate, if a bill, joint resolution,
amendment, or a conference report makes supplemental
appropriations for fiscal year 2005 for overseas contingency
operations related to the global war on terrorism, then the new
budget authority, new entitlement authority, and outlays
resulting from the provisions of such measure that are
designated pursuant to this section as making appropriations
for such contingency operations shall not count for purposes of
sections 302, 303, and 401 of the Congressional Budget Act of
1974 and, in the Senate only, shall not count for the purpose
of section 404 (relating to discretionary spending limits in
the Senate and 407 (relating to the pay-go requirement) of this
resolution, except that the amounts that are not counted for
purposes of this section shall not exceed $50,000,000,000 in
new budget authority.
SEC. 404. DISCRETIONARY SPENDING LIMITS IN THE SENATE.
(a) Discretionary Spending Limits.--In the Senate and as
used in this section, the term ``discretionary spending limit''
means for fiscal year 2005--
(1) $812,773,000,000 in new budget authority and
$818,285,000,000 in outlays for the discretionary
category;
(2) for the highway category, $33,393,000,000 in
outlays; and
(3) for the mass transit category, $1,488,000,000
in new budget authority, and $6,726,000,000 in outlays.
(b) Discretionary Spending Point of Order in the Senate.--
(1) In general.--Except as otherwise provided in
this subsection, it shall not be in order in the Senate
to consider any bill or joint resolution or amendment,
motion, or conference report thereon that would exceed
any of the discretionary spending limits in this
section.
(2) Waiver.--This subsection may be waived or
suspended in the Senate only by the affirmative vote of
three-fifths of the Members, duly chosen and sworn.
(3) Appeals.--Appeals in the Senate from the
decisions of the Chair relating to any provision of
this subsection 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 to sustain an appeal of
the ruling of the Chair on a point of order raised
under this subsection.
(c) Adjustments.--
(1) In general.--
(A) Chairman.--After the reporting of a
bill or joint resolution, or the offering of an
amendment thereto or the submission of a
conference report thereon, the chairman of the
Committee on the Budget may make the
adjustments set forth in subparagraph (B) for
the amount of new budget authority in that
measure (if that measure meets the requirements
set forth in paragraph (2)) and the outlays
flowing from that budget authority.
(B) Matters to be adjusted.--The
adjustments referred to in subparagraph (A) are
to be made to--
(i) the discretionary spending
limits, if any, set forth in the
appropriate concurrent resolution on
the budget;
(ii) the allocations made pursuant
to the appropriate concurrent
resolution on the budget pursuant to
section 302(a) of the Congressional
Budget Act of 1974; and
(iii) the budgetary aggregates as
set forth in the appropriate concurrent
resolution on the budget.
(2) Amounts of adjustments.--The adjustment
referred to in paragraph (1) shall be--
(A) an amount provided for transportation
under section 311;
(B) an amount provided for fire suppression
pursuant to section 312; and
(C) the amounts provided in section 313.
(3) Reporting revised suballocations.--Following
any adjustment made under paragraph (1), the Committee
on Appropriations of the Senate shall report
appropriately revised suballocations under section
302(b) to carry out this subsection.
(d) Repeal.--Section 504 of H. Con. Res. 95 (108th
Congress) is repealed.
SEC. 405. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND DEFINITIONS.
(a) Changes in Concepts and Definitions.--In the House and
Senate, upon the enactment of a bill or joint resolution
providing for a change in concepts or definitions, the chairman
of the Committee on the Budget shall make adjustments to the
levels and allocations in this resolution in accordance with
section 251(b) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (as in effect prior to September 30, 2002).
(b) Miscellaneous Adjustments.--
(1) Senate.--In the Senate, for fiscal year 2005,
if a bill is reported, or an amendment thereto is
offered or a conference report thereon is submitted,
that changes offsetting receipts collected from the
Power Marketing Administration into offsetting
collections credited against the allocation of the
Committee on Appropriations, the chairman of the
Committee on the Budget may adjust the appropriate
allocations and levels by the amount of new budget
authority provided by that measure (and outlays flowing
therefrom) for the Army Corps of Engineers and the
Pick-Sloan Missouri Basin Project within the Bureau of
Reclamation, but not to exceed the amount of forgone
offsetting receipts.
(2) House.--In the House, the chairman of the
Committee on the Budget may reduce the revenue
aggregates and increase the allocations to the
Committee on Ways and Means and other appropriate
spending aggregates for legislation that extends the
child tax credit, other than measures considered
pursuant to section 211, to the extent such adjustments
are deficit neutral for fiscal year 2005 and for the
period covered by this resolution.
SEC. 406. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS AND
AGGREGATES.
(a) Application.--Any adjustments of allocations and
aggregates made pursuant to this resolution shall--
(1) apply while that measure is under
consideration;
(2) take effect upon the enactment of that measure;
and
(3) be published in the Congressional Record as
soon as practicable.
(b) Effect of Changed Allocations and Aggregates.--Revised
allocations and aggregates resulting from these adjustments
shall be considered for the purposes of the Congressional
Budget Act of 1974 as allocations and aggregates contained in
this resolution.
(c) Budget Committee Determinations.--For purposes of this
resolution--
(1) the levels of new budget authority, outlays,
direct spending, new entitlement authority, revenues,
deficits, and surpluses for a fiscal year or period of
fiscal years shall be determined on the basis of
estimates made by the appropriate Committee on the
Budget; and
(2) such chairman may make any other necessary
adjustments to such levels to carry out this
resolution.
(d) Amendment in the House.--In the House, for purposes of
titles II and III, the term ``amendment'' or ``amendment
thereto'' means an amendment offered or an amendment made in
order as original text, or considered as adopted by special
order of the House.
(e) Allocations.--The allocations set forth in the joint
explanatory statement accompanying this resolution made under
section 302(a)(1) of the Congressional Budget Act of 1974 shall
be for fiscal year 2005 and (except in the case of the
Committee on Appropriations) for the period of fiscal years
covered by this resolution.
SEC. 407. PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.
(a) Point of Order.--
(1) In general.--It shall not be in order in the
Senate to consider any direct spending or revenue
legislation that would increase the on-budget deficit
or cause an on-budget deficit for any one of the three
applicable time periods as measured in paragraphs (5)
and (6).
(2) Applicable time periods.--For purposes of this
subsection, the term ``applicable time period'' means
any 1 of the 3 following periods:
(A) The first year covered by the most
recently adopted concurrent resolution on the
budget.
(B) The period of the first 5 fiscal years
covered by the most recently adopted concurrent
resolution on the budget.
(C) The period of the 5 fiscal years
following the first 5 fiscal years covered 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;
(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; or
(C) any legislation considered pursuant to
title II of this resolution.
(5) Baseline.--Estimates prepared pursuant to this
section shall--
(A) use the baseline surplus or deficit
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 on-budget deficit or causes
an on-budget deficit when taken individually, it must
also increase the on-budget deficit or cause an on-
budget deficit when taken together with all direct
spending and revenue legislation enacted since the
beginning of the calendar year not accounted for in the
baseline under paragraph (5)(A), except that direct
spending or revenue effects resulting in net deficit
reduction enacted pursuant to reconciliation
instructions since the beginning of that same calendar
year shall not be available.
(b) 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.
(c) 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 to sustain an appeal of the ruling of
the Chair on a point of order raised under this section.
(d) 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.
(e) Repeal.--Section 505 of H. Con. Res. 95 (108th
Congress) is repealed.
(f) Sunset.--This section shall expire on April 15, 2005.
SEC. 408. COMPLIANCE WITH SECTION 13301 OF THE BUDGET ENFORCEMENT ACT
OF 1990.
(a) In General.--In the House, notwithstanding section
302(a)(1) of the Congressional Budget Act of 1974 and section
13301 of the Budget Enforcement Act of 1990, the joint
explanatory statement accompanying the conference report on any
concurrent resolution on the budget shall include in its
allocation under section 302(a) of the Congressional Budget Act
of 1974 to the Committee on Appropriations amounts for the
discretionary administrative expenses of the Social Security
Administration.
(b) Special Rule.--In the House, for purposes of applying
section 302(f) of the Congressional Budget Act of 1974,
estimates of the level of total new budget authority and total
outlays provided by a measure shall include any discretionary
amounts provided for the Social Security Administration.
Subtitle B--Report Submissions
SEC. 411. SUBMISSION OF REPORT ON DEFENSE SAVINGS.
Not later than June 25, 2004, the Committees on Armed
Services of the House and the Senate shall submit to the
relevant Committee on the Budget (and publish in the
Congressional Record) its findings that identify $2,000,000,000
in savings from (1) activities that are determined to be of a
low priority to the successful execution of current military
operations; and (2) activities that are determined to be
wasteful or unnecessary to national defense. Funds identified
should be reallocated to programs and activities that directly
contribute to enhancing the combat capabilities of the U.S.
military forces with an emphasis on force protection, munitions
and surveillance capabilities.
SEC. 412. SUBMISSION OF REPORT ON HOMELAND SECURITY.
In the House and Senate, not later than June 25, 2004, the
Select Committee on Homeland Security and the Committee on
Governmental Affairs respectively, shall submit to the
corresponding Committees on the Budget (and publish in the
Congressional Record) a report identifying no less than
$150,000,000 in savings from--
(1) activities that are determined to be of low
priority to the successful execution of current
domestic homeland security operations; and
(2) activities that are determined to be wasteful
or unnecessary to homeland security.
Funds identified should be accompanied by recommendations on
reallocation to programs and activities that are considered top
priority activities or directly contribute to enhancing the
defense of our homeland.
Subtitle C--Exercise of Rulemaking Powers
SEC. 421. EXERCISE OF RULEMAKING POWERS.
Congress adopts the provisions of this title--
(1) as an exercise of the rulemaking power of the
Senate and the House, respectively, and as such they
shall be considered as part of the rules of each House,
or of that House to which they specifically apply, and
such rules shall supersede other rules only to the
extent that they are inconsistent therewith; and
(2) with full recognition of the constitutional
right of either House to change those rules (so far as
they relate to that House) at any time, in the same
manner, and to the same extent as in the case of any
other rule of that House.
TITLE V--REQUIRED LEVELS AND AMOUNTS FOR OUTYEARS
SEC. 501. RECOMMENDED LEVELS AND AMOUNTS.
In accordance with section 301(a) of the Congressional
Budget Act of 1974 (requiring levels for at least 4 years
following the budget year), the following budgetary levels are
appropriate for the fiscal years 2006 through 2009:
(1) Federal revenues.--For purposes of the enforcement of
this resolution--
(A) The recommended levels of Federal revenues are
as follows:
Fiscal year 2006: $1,634,152,000,000.
Fiscal year 2007: $1,753,744,000,000.
Fiscal year 2008: $1,844,828,000,000.
Fiscal year 2009: $1,950,926,000,000.
(B) The amounts by which the aggregate levels of
Federal revenues should be changed are as follows:
Fiscal year 2006: -$21,416,000,000.
Fiscal year 2007: $0.
Fiscal year 2008: $0.
Fiscal year 2009: $0.
(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 2006: $2,068,452,000,000.
Fiscal year 2007: $2,178,188,000,000.
Fiscal year 2008: $2,287,795,000,000.
Fiscal year 2009: $2,398,895,000,000.
(3) Budget outlays.--For purposes of the enforcement of
this resolution, the appropriate levels of total budget outlays
are as follows:
Fiscal year 2006: $2,082,187,000,000.
Fiscal year 2007: $2,155,801,000,000.
Fiscal year 2008: $2,254,981,000,000.
Fiscal year 2009: $2,363,019,000,000.
(4) Deficits.--For purposes of the enforcement of this
resolution, the amounts of the deficits are as follows:
Fiscal year 2006: $448,035,000,000.
Fiscal year 2007: $402,057,000,000.
Fiscal year 2008: $410,153,000,000.
Fiscal year 2009: $412,093,000,000.
(5) Debt subject to limit.--Pursuant to section 301(a)(5)
of the Congressional Budget Act of 1974, the appropriate levels
of the public debt are as follows:
Fiscal year 2006: $8,645,824,000,000.
Fiscal year 2007: $9,168,812,000,000.
Fiscal year 2008: $9,699,909,000,000.
Fiscal year 2009: $10,235,831,000,000.
(6) Debt held by the public.--The appropriate levels of the
debt held by the public are as follows:
Fiscal year 2006: $5,030,718,000,000.
Fiscal year 2007: $5,237,335,000,000.
Fiscal year 2008: $5,436,448,000,000.
Fiscal year 2009: $5,623,726,000,000.
SEC. 502. SOCIAL SECURITY.
(a) Social Security Revenues.--For purposes of Senate
enforcement under sections 302 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 2006: $600,872,000,000.
Fiscal year 2007: $629,263,000,000.
Fiscal year 2008: $658,631,000,000.
Fiscal year 2009: $689,510,000,000.
(b) Social Security Outlays.--For purposes of Senate
enforcement under sections 302 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 2006: $406,380,000,000.
Fiscal year 2007: $419,538,000,000.
Fiscal year 2008: $433,728,000,000.
Fiscal year 2009: $450,526,000,000.
(c) Social Security Administrative Expenses.--In the
Senate, the amounts of new budget authority and budget outlays
of the Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund for administrative
expenses are as follows:
Fiscal year 2006:
(A) New budget authority, $4,334,000,000.
(B) Outlays, $4,273,000,000.
Fiscal year 2007:
(A) New budget authority, $4,429,000,000.
(B) Outlays, $4,361,000,000.
Fiscal year 2008:
(A) New budget authority, $4,526,000,000.
(B) Outlays, $4,455,000,000.
Fiscal year 2009:
(A) New budget authority, $4,626,000,000.
(B) Outlays, $4,552,000,000.
SEC. 503. MAJOR FUNCTIONAL CATEGORIES.
Congress determines and declares that the appropriate
levels of new budget authority and budget outlays for fiscal
years 2006 through 2009 for each major functional category are:
(1) National Defense (050):
Fiscal year 2006:
(A) New budget authority, $432,366,000,000.
(B) Outlays, $452,218,00,000.
Fiscal year 2007:
(A) New budget authority, $442,103,000,000.
(B) Outlays, $434,750,000,000.
Fiscal year 2008:
(A) New budget authority, $452,073,000,000.
(B) Outlays, $438,532,000,000.
Fiscal year 2009:
(A) New budget authority, $462,069,000,000.
(B) Outlays, $447,384,000,000.
(2) International Affairs (150):
Fiscal year 2006:
(A) New budget authority, $30,619,000,000.
(B) Outlays, $32,248,000,000.
Fiscal year 2007:
(A) New budget authority, $31,291,000,000.
(B) Outlays, $29,599,000,000.
Fiscal year 2008:
(A) New budget authority, $31,977,000,000.
(B) Outlays, $28,793,000,000.
Fiscal year 2009:
(A) New budget authority, $32,677,000,000.
(B) Outlays, $29,123,000,000.
(3) General Science, Space, and Technology (250):
Fiscal year 2006:
(A) New budget authority, $24,406,000,000.
(B) Outlays, $23,864,000,000.
Fiscal year 2007:
(A) New budget authority, $24,943,000,000.
(B) Outlays, $24,316,000,000.
Fiscal year 2008:
(A) New budget authority, $25,491,000,000.
(B) Outlays, $24,755,000,000.
Fiscal year 2009:
(A) New budget authority, $26,052,000,000.
(B) Outlays, $25,287,000,000.
(4) Energy (270):
Fiscal year 2006:
(A) New budget authority, $3,122,000,000.
(B) Outlays, $1,866,000,000.
Fiscal year 2007:
(A) New budget authority, $3,253,000,000.
(B) Outlays, $1,619,000,000.
Fiscal year 2008:
(A) New budget authority, $3,090,000,000.
(B) Outlays, $1,113,000,000.
Fiscal year 2009:
(A) New budget authority, $2,730,000,000.
(B) Outlays, $1,318,000,000.
(5) Natural Resources and Environment (300):
Fiscal year 2006:
(A) New budget authority, $32,942,000,000.
(B) Outlays, $32,931,000,000.
Fiscal year 2007:
(A) New budget authority, $33,755,000,000.
(B) Outlays, $33,655,000,000.
Fiscal year 2008:
(A) New budget authority, $34,443,000,000.
(B) Outlays, $34,118,000,000.
Fiscal year 2009:
(A) New budget authority, $35,923,000,000.
(B) Outlays, $35,413,000,000.
(6) Agriculture (350):
Fiscal year 2006:
(A) New budget authority, $23,914,000,000.
(B) Outlays, $22,748,000,000.
Fiscal year 2007:
(A) New budget authority, $24,920,000,000.
(B) Outlays, $23,758,000,000.
Fiscal year 2008:
(A) New budget authority, $24,865,000,000.
(B) Outlays, $23,735,000,000.
Fiscal year 2009:
(A) New budget authority, $25,928,000,000.
(B) Outlays, $24,917,000,000.
(7) Commerce and Housing Credit (370):
Fiscal year 2006:
(A) New budget authority, $8,720,000,000.
(B) Outlays, $4,292,000,000.
Fiscal year 2007:
(A) New budget authority, $8,191,000,000.
(B) Outlays, $2,744,000,000.
Fiscal year 2008:
(A) New budget authority, $8,154,000,000.
(B) Outlays, $1,485,000,000.
Fiscal year 2009:
(A) New budget authority, $8,014,000,000.
(B) Outlays, $1,202,000,000.
(8) Transportation (400):
Fiscal year 2006:
(A) New budget authority, $73,253,000,000.
(B) Outlays, $71,302,000,000.
Fiscal year 2007:
(A) New budget authority, $75,911,000,000.
(B) Outlays, $73,633,000,000.
Fiscal year 2008:
(A) New budget authority, $77,709,000,000.
(B) Outlays, $75,611,000,000.
Fiscal year 2009:
(A) New budget authority, $79,072,000,000.
(B) Outlays, $77,027,000,000.
(9) Community and Regional Development (450):
Fiscal year 2006:
(A) New budget authority, $13,607,000,000.
(B) Outlays, $14,457,000,000.
Fiscal year 2007:
(A) New budget authority, $13,905,000,000.
(B) Outlays, $14,231,000,000.
Fiscal year 2008:
(A) New budget authority, $14,127,000,000.
(B) Outlays, $14,032,000,000.
Fiscal year 2009:
(A) New budget authority, $14,439,000,000.
(B) Outlays, $14,318,000,000.
(10) Education, Training, Employment, and Social Services
(500):
Fiscal year 2006:
(A) New budget authority, $95,108,000,000.
(B) Outlays, $93,772,000,000.
Fiscal year 2007:
(A) New budget authority, $97,167,000,000.
(B) Outlays, $95,389,000,000.
Fiscal year 2008:
(A) New budget authority, $99,113,000,000.
(B) Outlays, $97,331,000,000.
Fiscal year 2009:
(A) New budget authority, $101,229,000,000.
(B) Outlays, $99,469,000,000.
(11) Health (550):
Fiscal year 2006:
(A) New budget authority, $257,888,000,000.
(B) Outlays, $257,875,000,000.
Fiscal year 2007:
(A) New budget authority, $272,290,000,000.
(B) Outlays, $271,481,000,000.
Fiscal year 2008:
(A) New budget authority, $292,081,000,000.
(B) Outlays, $291,298,000,000.
Fiscal year 2009:
(A) New budget authority, $314,270,000,000.
(B) Outlays, $311,345,000,000.
(12) Medicare (570):
Fiscal year 2006:
(A) New budget authority, $322,742,000,000.
(B) Outlays, $322,339,000,000.
Fiscal year 2007:
(A) New budget authority, $362,593,000,000.
(B) Outlays, $362,827,000,000.
Fiscal year 2008:
(A) New budget authority, $387,739,000,000.
(B) Outlays, $387,718,000,000.
Fiscal year 2009:
(A) New budget authority, $414,248,000,000.
(B) Outlays, $413,776,000,000.
(13) Income Security (600):
Fiscal year 2006:
(A) New budget authority, $342,290,000,000.
(B) Outlays, $345,570,000,000.
Fiscal year 2007:
(A) New budget authority, $343,329,000,000.
(B) Outlays, $345,588,000,000.
Fiscal year 2008:
(A) New budget authority, $356,872,000,000.
(B) Outlays, $358,513,000,000.
Fiscal year 2009:
(A) New budget authority, $366,779,000,000.
(B) Outlays, $367,788,000,000.
(14) Social Security (650):
Fiscal year 2006:
(A) New budget authority, $16,779,000,000.
(B) Outlays, $16,779,000,000.
Fiscal year 2007:
(A) New budget authority, $18,269,000,000.
(B) Outlays, $18,269,000,000.
Fiscal year 2008:
(A) New budget authority, $20,218,000,000.
(B) Outlays, $20,218,000,000.
Fiscal year 2009:
(A) New budget authority, $22,229,000,000.
(B) Outlays, $22,229,000,000.
(15) Veterans Benefits and Services (700):
Fiscal year 2006:
(A) New budget authority, $69,263,000,000.
(B) Outlays, $68,135,000,000.
Fiscal year 2007:
(A) New budget authority, $67,925,000,000.
(B) Outlays, $66,976,000,000.
Fiscal year 2008:
(A) New budget authority, $71,702,000,000.
(B) Outlays, $70,938,000,000.
Fiscal year 2009:
(A) New budget authority, $72,937,000,000.
(B) Outlays, $72,132,000,000.
(16) Administration of Justice (750):
Fiscal year 2006:
(A) New budget authority, $40,338,000,000.
(B) Outlays, $40,851,000,000.
Fiscal year 2007:
(A) New budget authority, $41,111,000,000.
(B) Outlays, $41,209,000,000.
Fiscal year 2008:
(A) New budget authority, $41,990,000,000.
(B) Outlays, $41,682,000,000.
Fiscal year 2009:
(A) New budget authority, $42,889,000,000.
(B) Outlays, $42,492,000,000.
(17) General Government (800):
Fiscal year 2006:
(A) New budget authority, $17,840,000,000.
(B) Outlays, $17,685,000,000.
Fiscal year 2007:
(A) New budget authority, $18,267,000,000.
(B) Outlays, $17,917,000,000.
Fiscal year 2008:
(A) New budget authority, $18,204,000,000.
(B) Outlays, $17,849,000,000.
Fiscal year 2009:
(A) New budget authority, $18,645,000,000.
(B) Outlays, $18,096,000,000.
(18) Net Interest (900):
Fiscal year 2006:
(A) New budget authority, $318,053,000,000.
(B) Outlays, $318,053,000,000.
Fiscal year 2007:
(A) New budget authority, $362,002,000,000.
(B) Outlays, $362,002,000,000.
Fiscal year 2008:
(A) New budget authority, $393,729,000,000.
(B) Outlays, $393,729,000,000.
Fiscal year 2009:
(A) New budget authority, $419,915,000,000.
(B) Outlays, $419,915,000,000.
(19) Allowances (920):
Fiscal year 2006:
(A) New budget authority, $0.
(B) Outlays, $0.
Fiscal year 2007:
(A) New budget authority, $0.
(B) Outlays, $0.
Fiscal year 2008:
(A) New budget authority, $0.
(B) Outlays, $0.
Fiscal year 2009:
(A) New budget authority, $0.
(B) Outlays, $0.
(20) Undistributed Offsetting Receipts (950):
Fiscal year 2006:
(A) New budget authority, -$54,798,000,000.
(B) Outlays, -$54,798,000,000.
Fiscal year 2007:
(A) New budget authority, -$63,037,000,000.
(B) Outlays, -$64,162,000,000.
Fiscal year 2008:
(A) New budget authority, -$65,782,000,000.
(B) Outlays, -$66,469,000,000.
Fiscal year 2009:
(A) New budget authority, -$61,150,000,000.
(B) Outlays, -$60,212,000,000.
TITLE VI--SENSE OF THE SENATE AND SENSE OF THE HOUSE
Subtitle A--Sense of the Senate
SEC. 601. SENSE OF THE SENATE ON BUDGET PROCESS REFORM.
It is the sense of the Senate that Congress and the
President should work together to enact budget process reform
legislation that would include mechanisms to restrain
Government spending. Such legislation may include--
(1) deficit targets that, when exceeded, would
result in across-the-board reductions in Federal
spending except Social Security, Medicare, and
Veterans' benefits;
(2) revision of the content of budget resolutions
to increase their focus on aggregate levels, and to
include easily understood enforcement tools such as--
(A) discretionary spending limits;
(B) pay-as-you-go; and
(C) explicit committee allocations;
(3) emergency spending procedures which budget for
emergency needs;
(4) pay-as-you-go limitations which apply to non-
budget expenditures;
(5) limitations on unauthorized appropriations; and
(6) enhanced rescission or constitutional line-item
veto authority for the President.
SEC. 602. SENSE OF THE SENATE ON BUDGET PROCESS REFORM WITH REGARD TO
THE CREATION OF BIPARTISAN COMMISSIONS TO COMBAT
WASTE, FRAUD, AND ABUSE AND TO PROMOTE SPENDING
EFFICIENCY.
(a) Waste, Fraud, and Abuse.--It is the sense of the Senate
that legislation should be enacted that would create a
bipartisan commission for the purpose of--
(1) submitting recommendations on ways to eliminate
waste, fraud, and abuse; and
(2) to provide recommendations on ways in which to
achieve cost savings through enhancing program
efficiencies in all discretionary and entitlement
programs.
The findings of the commission should be made on an annual
basis, and should be presented in conjunction with the
submission of the President's budget request to Congress.
(b) Efficiency.--It is the sense of the Senate that a
bipartisan commission should be established to--
(1) audit Federal domestic agencies, and programs
within such agencies, with the express purpose of
providing Congress with recommendations, and
legislation;
(2) implement those recommendations; and
(3) realign or eliminate government agencies and
programs that are duplicative, inefficient, outdated,
irrelevant, or have failed to accomplish their intended
purpose.
The findings of the commission should be made on an annual
basis, and should be presented in conjunction with the
submission of the President's budget request to Congress.
SEC. 603. SENSE OF THE SENATE ON THE RELATIONSHIP BETWEEN ANNUAL
DEFICIT SPENDING AND INCREASES IN DEBT SERVICE
COSTS.
It is the sense of the Senate that the Congressional Budget
Office shall consult with the Committee on the Budget of the
Senate in order to prepare a report containing a discussion
of--
(1) the relationship between annual deficit
spending and increases in debt service costs;
(2) the relationship between incremental increases
in discretionary spending and debt service costs; and
(3) the feasibility of providing estimates of debt
service costs in the cost estimates prepared pursuant
to section 308 of the Congressional Budget Act of 1974.
SEC. 604. SENSE OF THE SENATE REGARDING THE COSTS OF THE MEDICARE
PRESCRIPTION DRUG PROGRAM.
It is the sense of the Senate that the Committee on Finance
of the Senate should report a bill that consists of changes in
laws within its jurisdiction sufficient to ensure that spending
within part D of the Medicare Prescription Drug Benefit program
in fiscal years 2005 through 2013 does not exceed the total of
$409,000,000,000 as estimated by the Congressional Budget
Office.
SEC. 605. SENSE OF THE SENATE ON RETURNING STABILITY TO PAYMENTS UNDER
MEDICARE PHYSICIAN FEE SCHEDULE.
It is the sense of the Senate that, while recent actions by
Congress have helped address the immediate reductions in
reimbursement, further action by Congress is urgently needed to
put in place a new formula or mechanism for updating Medicare
physician fees in 2006 and thereafter, in order to ensure--
(1) the long-term stability of the Medicare payment
system for physicians and other health care
professionals, such that payment rates keep pace with
practice cost increases; and
(2) future access to physicians' services for
Medicare beneficiaries.
SEC. 606. SENSE OF THE SENATE SUPPORTING FUNDING RESTORATION FOR
AGRICULTURE RESEARCH AND EXTENSION.
It is the sense of the Senate that in making appropriations
and revenue decisions, the Senate supports--
(1) the restoration of the 33 accounts of the
Cooperative State Research, Education, and Extension
Service;
(2) the fiscal year 2005 funding of the National
Research Initiative; and
(3) the fiscal year 2005 funding of competitive
research programs of the Cooperative State Research,
Education, and Extension Service in an amount that is
adequate to--
(A) fight obesity and stave off chronic
diseases;
(B) combat insects and animal and plant
diseases;
(C) establish new crops, improved
livestock, and economic opportunities for
producers; and
(D) keep pathogens and other dangers out of
the air, water, soil, plants, and animals.
SEC. 607. SENSE OF THE SENATE CONCERNING A NATIONAL ANIMAL
IDENTIFICATION PROGRAM.
It is the sense of the Senate that in making appropriations
and revenue decisions, the Senate supports--
(1) the development and implementation of a
national animal identification program recognizing the
need for resources to carry out the implementation of
the plan;
(2) the provision by the Secretary of Agriculture
of a time-line for the development and implementation
of the program as soon as practicable after the date of
approval of this concurrent resolution;
(3) the provision by the Secretary of Agriculture
to ensure the Animal and Plant Health Inspection
Service, State animal health agencies, and agricultural
producers are provided funds necessary to implement a
national animal identification program; and
(4) the establishment of a program that is not
overly burdensome to agricultural producers and ensures
the privacy of information of agricultural producers.
SEC. 608. SENSE OF THE SENATE REGARDING CONTRIBUTIONS TO THE GLOBAL
FUND TO FIGHT AIDS, TUBERCULOSIS, AND MALARIA.
It is the sense of the Senate that appropriations Acts
should provide sufficient funds to continue matching
contributions from other sources to The Global Fund to Fight
AIDS, Tuberculosis, and Malaria on a 1 to 2 basis.
SEC. 609. SENSE OF THE SENATE CONCERNING CHILD NUTRITION FUNDING.
It is the sense of the Senate that the levels in this
concurrent resolution assume additional funds for the
reauthorization of Federal child nutrition programs.
SEC. 610. SENSE OF THE SENATE REGARDING COMPENSATION FOR EXPOSURE TO
TOXIC SUBSTANCES AT THE DEPARTMENT OF ENERGY.
It is the sense of the Senate that--
(1) claims for occupational illness, which are
determined to be caused by exposure to toxic substances
at Department of Energy facilities under subtitle D of
the EEOICPA, should be promptly, equitably, and
efficiently compensated;
(2) administrative and technical changes should be
made to the EEOICPA to--
(A) improve claims processing and review by
physicians panels to ensure cost-effective and
efficient consideration and determination of
workers' claims;
(B) provide for membership in additional
special exposure cohorts; and
(C) address eligibility issues at
facilities with residual radiation; and
(3) the President and Congress should work together
at the earliest opportunity to develop a plan that
effectively resolves the issue of a lack of a willing
payor for many claims that are determined under
subtitle D of the EEOICPA to be related to exposure to
a toxic substance at Department of Energy facilities.
SEC. 611. SENSE OF THE SENATE REGARDING TAX INCENTIVES FOR CERTAIN
RURAL COMMUNITIES.
It is the sense of the Senate that if tax relief measures
are enacted in accordance with the assumptions in the budget
resolution in this session of Congress, such legislation should
include incentives to help rural communities attract
individuals to live and work and start and grow a business in
those communities.
SEC. 612. SENSE OF THE SENATE CONCERNING SUMMER FOOD PILOT PROJECTS.
It is the sense of the Senate that sufficient funds should
be provided to the Food and Nutrition Service and other
appropriate agencies within the Department of Agriculture to
enable those agencies to expand the summer food pilot projects
established under section 18(f) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1769(f)) to all States of
the United States and to all service institutions (including
service institutions described in section 13(a)(7) of that
Act).
SEC. 613. SENSE OF THE SENATE REGARDING CLOSING THE ``TAX GAP''.
It is the sense of the Senate that the Internal Revenue
Service should be provided the resources necessary to increase
enforcement activities that would be concentrated on efforts to
reduce the tax gap substantially by the end of fiscal year
2009.
Subtitle B--Sense of the House
SEC. 621. SENSE OF THE HOUSE ON ENTITLEMENT REFORM.
(a) Findings.--The House finds that welfare was
successfully reformed through the application of work
requirements, education and training opportunity, and time
limits on eligibility.
(b) Sense of the House.--It is the sense of the House that
authorizing committees should--
(1) systematically review all means-tested
entitlement programs and track beneficiary
participation across programs and time;
(2) enact legislation to develop common eligibility
requirements for means-tested entitlement programs;
(3) enact legislation to accurately rename means-
tested entitlement programs;
(4) enact legislation to coordinate program
benefits in order to limit to a reasonable period of
time the Government dependency of means-tested
entitlement program participants;
(5) evaluate the costs of, and justifications for,
nonmeans-tested, nonretirement-related entitlement
programs; and
(6) identify and utilize resources that have
conducted cost-benefit analyses of participants in
multiple means- and nonmeans-tested entitlement
programs to understand their cumulative costs and
collective benefits.
Subtitle C--Sense of Congress
SEC. 631. SENSE OF CONGRESS ON SPENDING ACCOUNTABILITY.
It is the sense of Congress that--
(1) authorizing committees should actively engage
in oversight utilizing--
(A) the plans and goals submitted by
executive agencies pursuant to the Government
Performance and Results Act of 1993; and
(B) the performance evaluations submitted
by such agencies (that are based upon the
Program Assessment Rating Tool which is
designed to improve agency performance);
in order to enact legislation to eliminate waste,
fraud, and abuse to ensure the efficient use of
taxpayer dollars;
(2) all Federal programs should be periodically
reauthorized and funding for unauthorized programs
should be level-funded in fiscal year 2005 unless there
is a compelling justification;
(3) committees should submit written justifications
for earmarks and should consider not funding those most
egregiously inconsistent with national policy;
(4) the fiscal year 2005 budget resolution should
be vigorously enforced and legislation should be
enacted establishing statutory limits on appropriations
and a pay-as-you-go rule for new and expanded
entitlement programs; and
(5) Congress should make every effort to offset
nonwar-related supplemental appropriations.
And the House agree to the same.
Jim Nussle,
Rob Portman,
Managers on the Part of the House.
Don Nickles,
Pete Domenici,
Chuck Grassley,
Judd Gregg,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
The managers on the part of the House and the Senate at
the conference on the disagreeing votes of the two Houses on
the amendment of the House to the concurrent resolution (S.
Con. Res. 95) setting forth the congressional budget for the
United States Government for fiscal year 2005 and setting forth
appropriate budgetary levels for fiscal years 2006 through
2009, 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 House amendment struck all out of the Senate
resolution after the resolving clause and inserted a substitute
text.
The Senate recedes from its disagreement to the amendment
of the House with an amendment that is a substitute for the
Senate resolution and the House amendment. The differences
between the Senate resolution, the House amendment, and the
substitute agreed to in conference are noted below, except for
clerical corrections, conforming changes made necessary by
agreements reached by the conferees, and minor drafting and
clarifying changes.
DISPLAYS AND AMOUNTS
The contents of concurrent budget resolutions are set
forth in section 301(a) of the Congressional Budget Act of
1974. The years in this document are fiscal years unless
otherwise noted.
Senate Resolution
The Senate resolution includes all of the items required
as part of a concurrent budget resolution under section 301(a)
of the Congressional Budget Act. The Senate resolution included
the traditional function categories and set out levels for
fiscal year 2005.
House Amendment
The House amendment includes all of the items required as
part of a concurrent budget resolution under section 301(a) of
the Congressional Budget Act. It also included a new separate
functional category, function 100, for Homeland Security. As
permitted under section 301(b) of the Congressional Budget Act,
Section 101(6) of the House amendment includes advisory levels
on debt held by the public. The House Amendment revised the
levels for the current year, fiscal year 2004.
Conference Agreement
The conference agreement includes all of the items
required as part of a concurrent budget resolution under
section 301(a) of the Congressional Budget Act. As permitted
under section 301(b) of the Congressional Budget Act, Section
101(6) of the conference agreement includes advisory levels on
debt held by the public. The conference agreement does not
include a function 100.
AGGREGATE AND FUNCTION LEVELS
The following tables are included in this section:
Conference Report on the Fiscal Year 2005 Budget Resolution:
Aggregate and Function Levels
Senate-Passed Fiscal Year 2005 Budget Resolution: Aggregate and
Function Levels
House-Passed Fiscal Year 2005 Amendment: Total Spending and
Revenues
House-Passed Fiscal Year 2005 Amendment: Discretionary Spending
House-Passed Fiscal Year 2005 Amendment: Mandatory Spending
FUNCTIONS AND REVENUES
Pursuant to section 301(a)(4) of the Budget Act, the
budget resolution must set appropriate levels for each major
functional category based on the 302(a) allocations and the
budgetary totals.
The respective levels of the Senate resolution, the House
amendment, and the conference agreement for each major budget
function and revenue totals are discussed in the following
section.
Note: In the House amendment as passed, funding amounts
for certain homeland security activities were moved out of
their customary functions and into a separate category,
Function 100--Homeland Security. Therefore, the House-passed
totals in these functions do not precisely correspond with
those in the Senate-passed resolution. The functions affected
are Function 050 (non-military activities only), Function 150,
Function 250, Function 270, Function 300, Function 350,
Function 370, Function 400, Function 450, Function 500,
Function 550, Function 570, Function 600, Function 700,
Function 750, and Function 800. The customary correspondence
was restored in the process of developing the conference
agreement.
The conference agreement provides aggregate discretionary
spending in 2005 of $814.261 billion in budget authority and
$890.812 billion in outlays including outlays flowing from
prior-year emergencies. These two aggregate numbers are
allocated to the Appropriations Committees to be suballocated
to their 13 individual appropriations subcommittees as required
by section 302 of the Budget Act.
REVENUES
Federal revenues are taxes and other collections from the
public that result from the government's sovereign or
governmental powers. Revenues contained in the budget
resolution reflect all of the Federal government's various tax
receipts that are classified as ``on budget.'' This includes
individual income taxes, corporate income taxes, excise taxes,
estate and gift taxes, customs duties and miscellaneous
receipts (which include deposits of earnings by the Federal
Reserve System, fines, penalties, fees for regulatory services,
and others). The component of social insurance taxes that is
collected for the Social Security system--the Old Age and
Survivors and Disability Insurance [OASDI] payroll tax--is
``off budget.'' The remaining social insurance taxes (the
Hospital Insurance [HI] payroll tax portion of Medicare, the
Federal Unemployment Tax Act [FUTA] payroll tax, railroad
retirement and other retirement systems) are all on budget.
Pursuant to the Congressional Budget Act of 1974 and the Budget
Enforcement Act of 1990, Social Security payroll taxes, which
constitute slightly more than a quarter of all Federal
receipts, are not included in the budget resolution.
Under current law, federal tax collections are projected
to total $11.8 trillion over the next five years. For 2004,
total revenues are projected to be 15.9 percent of gross
domestic product [GDP], far below the post-World War II average
of 17.9 percent. Over the period covered by the budget
resolution, 2005-2009, total baseline revenues are projected to
average 17.8 percent of GDP (nearly back to the long-term
historical average). Even though this conference agreement
assumes policies producing a net reduction in tax revenues,
total federal taxes are still projected to rise from 16.8
percent of GDP in 2005 to 18.2 percent of GDP in 2009--above
the historical average. The increase in Federal taxes relative
to GDP occurs because of provisions in the tax code that are
not indexed fully for inflation and real, inflation-adjusted,
income growth. The tendency for taxes to increase relative to
the size of the economy due to inflation and a growing economy
highlights the need to regularly adjust tax policies to avoid
an ever-increasing tax burden on our economy.
Senate Resolution
The Senate resolution assumes total revenues of $11.7
trillion over the next five years, $0.1 trillion less than
baseline, climbing from 15.9 percent of GDP this year to 18.0
percent of GDP by 2009.
The Senate resolution assumes that the accelerated tax
relief provisions in the 2003 Jobs and Growth Tax Relief
Reconciliation Act [JGTRRA] that expire at the end of 2004
($1,000 child credit, marriage penalty relief and a one-year
extension of the 10-percent income tax bracket expansion) are
permanently extended. The resolution assumes that the repeal of
the death tax is accelerated by one year to 2009. The
resolution reconciles the Finance Committee for a reduction in
revenues consistent with these changes through 2009 (the scope
of the budget resolution). The Finance Committee is instructed
to report legislation to reduce revenues by $80.6 billion over
the 2005-2009 period.
The Senate resolution assumes, but does not reconcile,
another $22.7 billion in tax relief over five years; this
reflects making permanent: the JGTRRA dividends and capital
gains tax rate structures, the 2001 Economic Growth and Tax
Relief Reconciliation Act marginal rate reductions, estate tax
repeal, education incentives, modifications of pension plans,
and other incentives for families and children (adoption tax
credit, employer-provided child care tax credit, and dependent
care tax credit).
The Senate resolution assumes $23.1 billion in tax relief
for the President's proposal for a one-year extension of the
alternative minimum tax exemption amount and the treatment of
personal credits under the AMT. The resolution assumes $15
billion in tax relief related to energy policy legislation. The
resolution also assumes the revenue impact of medical
malpractice reform.
The Senate resolution assumes that Congress will act to
close tax loopholes identified by the President and by the tax-
writing committees. For example, the Senate resolution assumes
revenue from the President's proposal to increase disclosure of
tax shelters and increase penalties for failure to disclose
those shelter arrangements, from the President's proposal to
shut down abusive leasing transactions between U.S.
corporations and tax-exempt entities (so-called ``SILO''
transactions), and from the Finance Committee's proposal to
shut down Enron-related tax shelters. The Senate resolution
assumes that the revenue raised by closing loopholes and
reducing fraud (such as in the Earned Income Credit, see
function 600) is available to offset tax relief provisions that
have been recommended by the President and supported by the
Committee, such as the proposal to allow individuals to deduct
the cost of high-deductible health plans, as well as many
proposals that are being considered by Congress.
During Senate consideration of the 2005 budget
resolution, the Senate adopted by voice vote a Landrieu
amendment (S.A. 2775) that increased revenues by $876 million
in 2005 and by $5.5 billion over the 2005-2009 period.
House Amendment
The House amendment calls for $1.457 trillion in on-
budget revenue for fiscal year 2005, and $8.539 trillion over
2005-2009. Total revenue in the House amendment is $2.030
trillion for fiscal year 2005 and $11.691 trillion over 2005-
2009. The House amendment assumes policies with a revenue
impact of $19.919 billion for fiscal year 2005 and $145.799
billion over 2005-2009. These effects are principally the
result of preventing automatic tax increases that would
otherwise occur.
Although the House amendment does not explicitly define
specific changes in tax policy, the revenue levels of the
amendment are consistent with a general policy of not
increasing taxes compared to policies currently in place. In
particular, the amendment includes adjustments to revenue of
sufficient size to accommodate continuation of specific
provisions that are set to expire, including:
No tax increase for those claiming the child tax
credit. The amendment provides for retaining the
current credit level of $1,000 per child. It assumes
Congress will act to prevent a reduction in the credit,
to $700 per child, scheduled to occur in 2005. In other
words, the House amendment accommodates changes to
prevent a potential tax increase of $600 on a family
with two children--from that provision alone--that
would otherwise occur.
No increase in the marriage penalty. The amendment
accommodates changes to prevent a scheduled reduction
in the upper bound of the 15-percent bracket and
standard deduction for a married couple.
No increase in taxes resulting from a reduction in
the upper threshold for the 10-percent income tax
bracket (e.g., scheduled to decline from $14,000
adjusted for inflation in 2004 for joint filers to
$12,000 in 2005 if not extended).
The House amendment accommodates extending the small
business expensing limits (the expensing of business equipment
and computer software spending is scheduled to fall back to a
limit of $25,000 in 2005, from the inflation-indexed level of
$100,000 for 2003). Extension of bonus depreciation for
corporate investment spending is not accommodated, reflecting
the original intent of it serving as a temporary, short-run
stimulus at the time of its adoption in 2002 and its extension
in 2003.
The House amendment sets the on-budget revenue level of
the Federal government for 2004 and the next five years, but it
is the responsibility of the Committee on Ways and Means to
make the specific adjustments in law to implement these levels.
The House amendment directs the Committee on Ways and
Means to report legislation to the House floor by October 1,
2004, making adjustments in current law to prevent tax
increases of $13.182 billion in fiscal year 2005 and $137.580
billion for fiscal year 2005-2009. These reconciled tax
adjustments provide the full amount necessary to prevent tax
increases from the provisions of law enacted in 2001 and 2003.
The President's budget proposals assumed these amounts as a
baseline adjustment.
Conference Agreement
The conference agreement for revenues assumes a level
sufficient to accommodate the extension of the $1,000 child
credit, marriage penalty relief, and the expansion of the 10-
percent individual income tax bracket, all of which are
scheduled to expire at the end of 2004. The conference
agreement includes a reconciliation instruction to the House
Ways and Means Committee and the Senate Finance Committee to
report legislation by September 30, 2004, that reduces revenues
by $22.9 billion and that increases related outlays by $4.6
billion, which is sufficient to accommodate a one-year
extension of certain expiring tax cuts. The reconciled amounts
provide an amount sufficient to prevent the tax increases that
would occur if these provisions were allowed to expire.
The conference agreement also can accommodate, but does
not reconcile, $27.7 billion (over five years) of tax relief.
Function 050: National Defense
Function Summary
Function 050 includes funds to develop, maintain, and
equip the military forces of the United States. More than 95
percent of the funding in this function goes to Function 051--
Department of Defense [DOD] military activities; the remaining
funding in the function applies to atomic energy defense
activities of the Department of Energy (Function 053), and
other defense-related activities (Function 054).
Function 050 budget authority rose from $292.3 billion in
fiscal year 1999 to $463.6 billion in fiscal year 2004, a 9.7-
percent average annual growth rate. During the same time
period, outlays rose from $274.9 billion to $453.0 billion, a
10.5 percent average annual growth rate (these figures include
the effects of supplemental spending). The largest component of
this was the budget of the Department of Defense, whose budget
authority grew from $278.5 billion in fiscal year 1999 to
$443.8 billion in 2004, a 9.8 percent average annual increase.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function would total $420.8 billion in budget authority
and $447.1 billion in outlays for 2005. This represents a
decrease of $38.3 billion in budget authority (-8.3 percent)
and $4.8 billion in outlays (-1.1 percent) from the 2004 level,
factoring in $65.1 billion in budget authority provided in the
2004 Emergency Supplemental for military operations in Iraq and
Afghanistan. When the Emergency funding is excluded the Senate
resolution for 2005 represents an increase of $26.8 billion in
budget authority (6.8 percent) above the 2004 level.
To address the ongoing costs of military operations in
Iraq and Afghanistan, the Senate resolution includes a $30
billion reserve for supplemental appropriations. This ``war
reserve'' is described in the enforcement title. When the war
reserve is included, the Senate resolution for function 050
represents an increase of $56.8 billion in budget authority
(14.4 percent) above the 2004 level.
The Senate resolution reflects the President's request
for defense. Ultimately, the conference report on the 2005
budget resolution will allocate one discretionary level to the
Appropriations Committee (302(a) allocation), and it is in the
jurisdiction of the Appropriations Committee, not the Budget
Committee, to set appropriation levels for 2005 for all
discretionary programs. In light of that reality, the Senate
resolution encourages the Appropriations Committee to give
careful consideration to the President's $72 million requested
increase for the Radiation Exposure Compensation Act to ensure
adequate resources will be available to pay all claimants
through 2005.
House Amendment
Note: In the House amendment as passed, funding amounts
for certain homeland security activities were moved out of this
function into a separate category, Function 100--Homeland
Security. The effect applied only to non-military, non-
Department of Defense activities. Accordingly, the House-passed
totals in these functions do not precisely correspond with
those in the Senate-passed resolution. The customary
correspondence was restored in the process of developing the
conference agreement.
The amendment calls for $419.6 billion in budget
authority and $447.1 billion in outlays in fiscal year 2005.
The function totals are $2.321 trillion in budget authority and
$2.285 trillion in outlays over 5 years. Mandatory spending is
$1.4 billion in budget authority and $2.4 billion in outlays in
fiscal year 2005, and totals $15.8 billion in budget authority
and $16.9 billion in outlays over 5 years. Discretionary
spending is $418.3 billion in budget authority and $444.7
billion in outlays in fiscal year 2005; and over 5 years, it is
$2.305 trillion in budget authority and $2.268 trillion in
outlays.
Mandatory
Function 050 contains numerous small mandatory accounts
such as stock funds, trust funds, and gift funds whose receipts
vary from year to year. The resolution assumes 2005 mandatory
spending that matches the President's request. For 2004, the
amendment accommodates $13 million to retroactively compensate
service members for purchase of domestic airline tickets used
for travel from the Iraqi theater of war to their final
destination. The Supplemental Appropriations Act for Fiscal
Year 2004 (Public Law 108-106) specified that funds be used to
reimburse service members, but DOD did not authorize
disbursement until 19 December 2003. Under current government
compensation rules, no decision can be implemented
retroactively; hence there is a need to allocate direct
spending to fund a provision that would specifically reimburse
service members not compensated under the supplemental
appropriation.
Discretionary
Figures show a recommended increase of 7 percent
(excluding the 2004 supplemental), fully accommodating the
President's request. Department of Defense discretionary
funding, at $401.8 billion, matches the President's request.
The national defense budget presented here is part of a
multiyear plan enabling the military to fight the war against
terrorism now, and to transform to counter unconventional
threats in the future. Elsewhere (in Function 920) the
resolution includes $50 billion to anticipate additional needs
in the Afghanistan and Iraq theaters. This is a mid-range
estimate for anticipated annual costs. It is not an attempt to
predetermine the scope of operations or which weapons and
supplies DOD will need, but rather an effort to make the budget
reflect a likely future outlay.
A special procedure provided for in the budget resolution
would exempt appropriations related to the global war on
terrorism, and hence a supplemental appropriation toward this
end will not trigger a point of order.
A saving of $199 million from the request in Functions
053 and 054 is assumed for efficiencies; it should be noted,
however, that the 2005 resolution total (including Homeland
Security accounts) for these functions is $543 million more
than the previous year's appropriations. This modest adjustment
does not affect Department of Defense funding or ongoing
contingency operations.
Conference Agreement
The conference agreement assumes the President's
requested levels for national defense plus $50 billion for
supplemental appropriations for operations in the Afghan and
Iraqi theaters. The conference agreement for this function
reflects total spending of $472.2 billion in budget authority
and $474.3 billion in outlays for fiscal year 2005. Mandatory
spending for this function is $1.4 billion in budget authority
and $2.4 billion in outlays in fiscal year 2005. Discretionary
spending for this function is $470.8 billion in budget
authority and $471.9 billion in outlays in fiscal year 2005.
During the conference on the budget resolution, conferees
received information that the Department of Defense is likely
to reach the current statutory limit on the number of military
housing projects allowed under the Military Housing
Privatization Initiative [MHPI] sometime during fiscal year
2005. The administration and the General Accounting Office are
reviewing the program. The conferees understand the importance
of improved military housing for the quality of life of service
personnel and their families and are committed to working with
the committees of jurisdiction to address procedural issues
that could apply to legislation allowing a temporary extension
of military family housing improvements.
Function 150: International Affairs
Function Summary
Function 150 includes international development and
humanitarian assistance; international security assistance; the
conduct of foreign affairs; foreign information and exchange
activities; and international financial programs. Function 150
supports the Department of State and related international
affairs organizations including the U.S. Agency for
International Development [USAID].
Function 150 budget authority rose from $37.9 billion in
fiscal year 1999 to $43.7 billion in fiscal year 2004, a 2.9
percent average annual growth rate. During the same time
period, outlays rose from $15.2 billion to $29.3 billion, a
14.0 percent average annual growth rate. The largest component
of this was the budget of the Department of State, whose budget
authority grew from $8.8 billion in 1999 to $10.6 billion in
fiscal year 2004, a 3.7 percent average annual increase.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $32.3 billion in budget authority and $37.0
billion in outlays for 2005. This represents a decrease of
$16.3 billion in budget authority (-33.6 percent) and an
increase of $2.9 billion in outlays (8.5 percent) from the 2004
level, factoring in $21.8 billion in budget authority provided
in the 2004 Emergency Supplemental for international affairs
activities (including $19.4 billion for international relief
and reconstruction activities in Iraq). When this funding is
excluded the resolution for 2005 represents an increase of $5.5
billion in budget authority (20.3 percent).
The Senate resolution reflects the President's request
for international affairs (Lugar Amendment 2845) plus $730
million in additional funding. The Senate resolution assumes
$330 million would be added to the requested level for the
Child Survival and Health program (DeWine Amendment 2697), $300
million would be added to the requested level for fighting
global HIV/AIDS (Lugar Amendment 2845), and $100 million would
be added for Haiti reconstruction (DeWine Amendment 2715). The
amendments adopted by the Senate included corresponding
negative entries for function 920 to result in no net effect on
the overall budget.
The Senate resolution supports the use of United States
contributions to the Global Fund to Fight AIDS, Tuberculosis
and Malaria as leverage for increasing the amount of
international financial support in this battle. However, the
Senate is concerned by recent reports that suggest the Fund has
been making grants to finance the purchase of ineffective
malaria drugs, contrary to preferred World Health Organization
policy on malaria treatment. The reports have called into
question whether the nascent Fund has the necessary mechanisms
in place to guarantee the effective use of United States and
international contributions to the Fund. Because continued
support for the Fund depends upon transparency and
accountability in the Fund's grant-making process, the Senate
believes the United States should work with foreign governments
and international organizations to ensure that the Fund has the
necessary capabilities to use its contributions most
effectively.
Mandatory
The resolution assumes no mandatory increases or
decreases in this function.
House Amendment
The amendment calls for $26.5 billion in budget authority
and $32.8 billion in outlays in fiscal year 2005. The function
totals are $138.5 billion in budget authority and $140.0
billion in outlays over 5 years. Mandatory spending is -$0.4
billion in budget authority and -$3.0 billion in outlays in
fiscal year 2005, and totals $2.8 billion in budget authority
and -$13.0 billion in outlays over 5 years. Discretionary
spending is $26.9 billion in budget authority and $35.8 billion
in outlays in fiscal year 2005; and over 5 years, it is $135.8
billion in budget authority and $153.0 billion in outlays.
The negative budget authority and outlay levels in
mandatory spending reflect receipts of the Foreign Military
Sales Trust Fund, interest income earned on U.S. Government
securities held by the Exchange Stabilization Fund, and the
liquidation of economic assistance loans, foreign military
financing loans, Export-Import Bank loans, loans to the United
Kingdom, and loan guarantees to Israel.
Mandatory
There are no specific mandatory assumptions in this
function. In fiscal year 2005, the mandatory budget authority
and outlay levels are negative, reflecting receipts of the
Foreign Military Sales Trust Fund, and the liquidation of
economic assistance loans, foreign military financing loans,
Export-Import Bank loans, loans to the United Kingdom, and loan
guarantees to Israel.
Discretionary
Specific programs will be increased or decreased when the
Appropriations subcommittees write their respective bills.
Outyear levels result from applying a simple computation of
modest growth, consistent with the President's budget. Outyear
levels are not binding and will be revisited in subsequent
years.
Conference Agreement
The conference agreement for this function reflects total
spending of $28.9 billion in budget authority and $32.8 billion
in outlays for fiscal year 2005. Mandatory spending for this
function is -$357 million in budget authority and -$3.0 billion
in outlays in fiscal year 2005. Discretionary spending for this
function is $29.3 billion in budget authority and $35.8 billion
in outlays in fiscal year 2005. The conference agreement for
International Affairs is sufficient to support an historic
level of funding for HIV/AIDS.
Function 250: General Science, Space, and Technology
Function Summary
Function 250 consists of General Science, Space and
Technology programs. The largest component of this function--
about two-thirds of total spending--is for the space flight,
research, and supporting activities of the National Aeronautics
and Space Administration [NASA]. The function also contains
general science funding, including the budgets for the National
Science Foundation [NSF], and the fundamental science programs
of the Department of Energy [DOE].
Function 250 budget authority rose from $18.9 billion in
fiscal year 1999 to $23.4 billion in fiscal year 2004, a 4.4
percent average annual growth rate. During the same period,
outlays rose from $18.1 billion to $22.3 billion, a 4.2 percent
average annual growth rate.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $24.2 billion in budget authority and $23.6
billion in outlays for 2005. This represents an increase of
$0.9 billion in budget authority and $1.4 billion in outlays
from the 2004 level. The resolution includes the following
specific assumptions:
For NASA (including function 250 and 400 accounts), $16.2
billion is assumed, a 5.6 percent increase over 2004. The
Senate resolution assumes fully funding the President's request
for NASA in 2005 and the outyears. The Committee-reported
resolution did not assume fully funding the President's request
in 2005, but an amendment (SA 2733) offered by Senator Sessions
and adopted by the Senate increased NASA by $600 million in
2005 and reduced function 800 by a like amount, resulting in no
net effect on the overall budget.
For the Department of Energy Office of Science, the
resolution rejects the President's requested cut, and instead
assumes an additional $38 million (1.1 percent) above the 2004
level.
Mandatory
The Senate resolution assumes no mandatory increases or
decreases for this function.
House Amendment
The amendment calls for $22.8 billion in budget authority
and $22.5 billion in outlays in fiscal year 2005. The function
totals are $115.2 billion in budget authority and $113.5
billion in outlays over five years. Mandatory spending is $30
million in budget authority and $111 million in outlays in
fiscal year 2005, and totals $154 million in budget authority
and $321 million in outlays over five years. Discretionary
spending is $22.8 billion in budget authority and $22.3 billion
in outlays in fiscal year 2005; and over five years, it is
$115.1 billion in budget authority and $113.2 billion in
outlays.
Mandatory
There are no specific mandatory assumptions in this
function.
Discretionary
Specific programs will be increased or decreased when the
Appropriations subcommittees write their respective bills.
Outyear levels result from applying a simple computation of
modest growth, consistent with the President's budget. Outyear
levels are not binding and will be revisited in subsequent
years.
Conference Agreement
The conference agreement for this function reflects total
spending of $23.9 billion in budget authority and $23.3 billion
in outlays for fiscal year 2005. Mandatory spending for this
function is $30 million in budget authority and $111 million in
outlays in fiscal year 2005. Discretionary spending for this
function is $23.9 billion in budget authority and $23.2 billion
in outlays in fiscal year 2005.
The conferees support the President's Vision for
Exploration and believe the fiscal year 2005 funding for
Function 250 should provide sufficient funding to initiate the
process. Additionally, the bulk of the requested increase for
fiscal year 2005 is for return to flight of the Space Shuttle
and continued assembly and operations for the International
Space Station. The Conferees hope that these two must-fund
requirements will be taken into account during their
consideration of the NASA appropriation. The conferees also
recognize the importance of the research and education
initiatives of the Department of Energy's Office of Science and
the National Science Foundation.
Function 270: Energy
Function Summary
Function 270 includes civilian energy and environmental
programs of the Department of Energy [DOE] (it does not include
DOE's national security activities--the National Nuclear
Security Administration--which are in Function 050, or its
basic research and science activities, which are in Function
250). Function 270 also includes the Rural Utilities Service of
the Department of Agriculture, the Tennessee Valley Authority
[TVA], the U.S. Enrichment Corporation, the Federal Energy
Regulatory Commission, and the Nuclear Regulatory Commission.
Function 270 budget authority rose from $979 million in
fiscal year 1999 to $2.4 billion in fiscal year 2004, a 19.2
percent average annual growth rate. During the same time
period, outlays dropped from $911 million to $84 million, a
37.9 percent average annual reduction rate. Receipts,
repayments, and electricity sales (negative spending) result in
negative budget authority and are the primary causes for the
drop in outlays.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $2.0 billion in budget authority and $2.1
billion in outlays for 2005. The Senate resolution includes the
following specific assumptions:
The Senate resolution includes $1 billion for non-defense
Environmental Management, which is $86 million more than last
year. There is also $7.0 billion for Defense Environmental
Management, which is the same as the President's request and
$365 million more than last year in function 050. This
resolution does not assume that any of this funding will be
delayed until legal uncertainties regarding high level nuclear
waste are resolved.
The resolution does not assume the President's cuts to
Fossil Energy Research and Development, and instead funds the
program at $673 million which is the same as last year.
The resolution assumes $834 million for Energy supply
which is the same level as the President's request and $81
million more than last year's level. The resolution assumes
that $55 million of this increase will be for Nuclear Energy,
Science, and Technology, and will support the Generation IV
Nuclear Energy Systems Initiative, Nuclear Hydrogen Initiative,
and Advanced Fuel Cycle Initiative.
During floor debate on the Senate resolution, the Levin
amendment (SA 2817) was accepted on a roll call vote. This
amendment reduced spending in this function by $1.7 billion by
canceling the royalty in kind program for the Strategic
Petroleum Reserve, $1.5 billion of this amount was then
redirected towards Homeland Security activities in a reserve
fund.
Mandatory
The Senate resolution includes a reserve fund for an
energy bill totaling $261 million in fiscal year 2005 and $1.5
billion over five years. This includes provisions dealing with
renewable energy, oil and gas, coal, electricity, energy tax
incentives, and ethanol.
House Amendment
The amendment calls for $2.9 billion in budget authority
and $1.2 billion in outlays in fiscal year 2005. The function
totals are $13.0 billion in budget authority and $5.2 billion
in outlays over five years. Mandatory spending is -$0.6 billion
in budget authority and -$2.3 billion in outlays in fiscal year
2005. Over the 2005-2009 period, mandatory spending is -$4.7
billion in budget authority and -$12.7 billion in outlays due
to increasing offsetting receipts from various loan repayments
and liquidations, electricity sales, and fees. Discretionary
spending is $3.5 billion in budget authority and $3.5 billion
in outlays in fiscal year 2005; and over five years, it is
$17.6 billion in budget authority and $17.9 billion in outlays.
Mandatory
As noted, the negative figures in mandatory spending
result from increasing offsetting receipts from various loan
repayments and liquidations, electricity sales, and fees.
The amendment accommodates the conference version of the
H.R. 6, the Energy Policy Act of 2003, which passed the House
on 18 November 2003, but has not been passed by the Senate. The
assumption is reflected in the allocation to the Committee on
Energy and Commerce. The authorizing committee is free to
determine its own policies within the allocation limits.
Discretionary
Specific programs will be increased or decreased when the
Appropriations subcommittees write their respective bills.
Outyear levels are not binding and will be revisited in
subsequent years.
Conference Agreement
The conference agreement for this function reflects total
spending of $3.0 billion in budget authority and $1.4 billion
in outlays for fiscal year 2005. Mandatory spending for this
function is -$0.6 billion in budget authority and -$2.4 billion
in outlays in fiscal year 2005. Discretionary spending for this
function is $3.6 billion in budget authority and $3.8 billion
in outlays in fiscal year 2005.
Function 300: Natural Resources and Environment
Function Summary
Function 300 consists of water resources, conservation,
land management, pollution control and abatement, and
recreational resources. Major departments and agencies in this
function are the Department of Interior, including the National
Park Service [NPS], the Bureau of Land Management [BLM], the
Bureau of Reclamation, and the Fish and Wildlife Service [FWS];
conservation-oriented and land management agencies within the
Department of Agriculture [USDA] including the Forest Service;
the National Oceanic and Atmospheric Administration [NOAA] in
the Department of Commerce; the Army Corps of Engineers; and
the Environmental Protection Agency [EPA].
Function 300 budget authority rose from $24.4 billion in
1999 to $32.3 billion in 2004, a 5.8 percent average annual
growth rate. During the same period, outlays increased from
$24.0 billion to $30.5 billion, a 4.9 percent average annual
increase.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $33.3 billion in budget authority and $29.4
billion in outlays for 2005. The Senate passed resolution
includes the following specific assumptions:
The resolution does not accept the Administration's cuts
to the Corps of Engineers and instead assumes $4.4 billion,
which is the same level of funding as last year. This includes
$1.4 billion for operation and maintenance and $1.6 billion for
construction.
The resolution assumes $11.6 billion for the
Environmental Protection Agency. This includes $7.0 billion for
State and Tribal Assistance Grants plus an additional $65
million for the new clean school bus program. This level also
includes the President's request of $1.4 billion for Superfund,
which is an increase of $138 million or 11 percent from last
year. This level also assumes $3 million within the EPA budget
to fund the establishment of an independent Office of
Ombudsman, pending enactment of authorizing legislation.
The Senate resolution assumes $907 million for fire
suppression within the Forest Service and Department of the
Interior. This is the same as the President's request and $117
million more than was spent last year after adjusting emergency
funding out of the 2004 level. In addition, the resolution
includes language that will allow up to $500 million in
additional funds for wildfire suppression to be appropriated
without penalty if the 10-year average is appropriated in the
Interior Appropriations bill. In addition the Senate resolution
supports the establishment of cost containment measures for
fire suppression.
The resolution does not accept the Administration's cuts
to State and Private Forestry, and instead assumes $429
million, the same level of funding as last year. The Committee
recognizes the important role that these programs play in order
to implement cooperative forestry across federal, state and
private lands.
The resolution assumes $5 million will be spent within
the Bureau of Land Management on wilderness proposals resulting
from the collaborative process.
The resolution supports payments of $53 million in 2005
and $265 million over 5 years from the Abandoned Mine
Reclamation Fund to the certified public lands states.
The resolution supports continued funding of programs
within the expired Conservation Spending Caps.
The resolution assumes $100 million for Pacific Coastal
Salmon Recovery. This is an $11 million increase over last
year's level and the same as the President's request.
The resolution assumes that $410 million from mandatory
Farm Bill conservation programs will be used as discretionary
offsets in 2005.
During floor debate on the Senate resolution, the Senate
accepted a Wyden amendment (SA 2717) by voice vote which added
$343 million in 2005 to this function for hazardous fuels
reduction and reduced function 920 by the same amount. In
addition, the Senate accepted a Crapo amendment (SA 2784) by
voice vote that added $3 billion in 2005 to this function for
the EPA clean and safe drinking water revolving funds and was
offset in function 920.
Mandatory
The Senate passed resolution assumes the President's
proposal allowing the Park Service to change rental payments to
the city of San Francisco for the Hetch Hetchy Dam in Yosemite
National Park.
The resolution assumes a technical correction to the
baseline that will allow technical assistance for the
Conservation Reserve Program and the Wetlands Reserve Program
to come out of mandatory Agriculture funds as was intended in
2002 Farm Bill.
The Committee adopted an amendment by Senator Grassley
during the Committee markup that added $531 million over five
years to this function to support farm conservation programs.
House Amendment
The amendment calls for $31.2 billion in budget authority
and $30.9 billion in outlays in fiscal year 2005. The function
totals are $159.6 billion in budget authority and $159.9
billion in outlays over five years. Mandatory spending is $2.7
billion in budget authority and $1.8 billion in outlays in
fiscal year 2005. Over the 2005-2009 period, mandatory spending
increases by $15.7 billion in budget authority and $15.3
billion in outlays. Discretionary spending is $28.5 billion in
budget authority and $29.1 billion in outlays in fiscal year
2005; and over five years, it is $143.9 billion in budget
authority and $144.6 billion in outlays.
Mandatory
The assumptions accommodate legislation, H.R. 313, to
assist the United Mine Workers of America Combined Benefit Fund
in averting financial crisis by transferring to it any
additional interest from the Abandoned Mine Land Reclamation
Fund. The measure was reported by the Committee on Resources on
1 October 2003. The resolution also accommodates legislation
that passed the House last year and is awaiting Senate action
to increase the waiver requirement for certain local matching
requirements for grants provided to American Samoa, Guam, the
Virgin Islands, or the Commonwealth of the Northern Mariana
Islands. These assumptions are reflected in the allocation to
the Committee on Resources, which is free to determine its own
policies within the allocation limits. The accommodation is
necessary to allow for a potential conference agreement.
Discretionary
The amendment can accommodate full funding for the
Healthy Forests Initiative legislation (H.R. 1904) signed into
law last year. The Healthy Forests Initiative is a critical
tool for reducing the threat of severe wildfire and insect
infestation in heavily forested communities.
The amendment also can accommodate full funding for
numerous other Federal agencies and programs, including the
Army Corps of Engineers, the Superfund program, and reducing
the Operations and Maintenance backlog within the National Park
Service.
Outyear levels are not binding and will be revisited in
subsequent years.
Conference Agreement
The conference agreement for this function reflects total
spending of $32.1 billion in budget authority and $31.4 billion
in outlays for fiscal year 2005. Mandatory spending for this
function is $2.8 billion in budget authority and $1.8 billion
in outlays in fiscal year 2005. Discretionary spending for this
function is $29.3 billion in budget authority and $29.7 billion
in outlays in fiscal year 2005.
The agreement assumes a technical correction to the
baseline that will allow technical assistance for the
Conservation Reserve Program and the Wetlands Reserve Program
to come out of mandatory agriculture spending.
The funding levels in this agreement assume funding
levels equal to the 10 year average for wildland fire
suppression within the Forest Service and Department of
Interior.
The agreement can accommodate level funding for the Army
Corps of Engineers.
The conferees support restoring funding for beach
renourishment projects for local communities with contractual
agreements with the Army Corps of Engineers. These projects are
critical for combating erosion caused by the federal
government's coastal navigation construction projects.
Function 350: Agriculture
Function Summary
Function 350 includes funds for direct assistance and
loans to food and fiber producers, export assistance, market
information, inspection services, and agricultural research.
Farm policy is driven by the Farm Security and Rural Investment
Act of 2002, which provides producers with continued planting
flexibility while protecting them against unique uncertainties
such as poor weather conditions and unfavorable market
conditions.
Function 350 budget authority fell from $23.9 billion in
1999 to $20.2 billion in 2004, a 3.3 percent average annual
reduction rate. During the same time period, outlays dropped
from $22.9 billion to $18.8 billion, a 3.9 percent average
annual reduction rate. The primary reason for this reduction is
more favorable overall commodity prices. Commodity prices often
fluctuate from year to year. This has a significant impact on
mandatory programs, which account for the vast majority of
spending within Function 350.
Senate Resolution
Discretionary
The resolution assumes discretionary spending in this
function of $5.4 billion in budget authority and $5.6 billion
in outlays for 2005. This represents a decrease of $0.2 billion
in budget authority and an increase of $0.1 billion in outlays
from the 2004 level. The Committee-reported resolution includes
the following specific assumptions:
The resolution assumes an increase of $294 million in
budget authority from last year's level for activities related
to homeland security, a 94 percent increase over last year.
This includes a $115 million increase for the Agriculture
Research Service to provide for the acceleration of the
completion of the animal research lab in Ames, Iowa.
The resolution assumes an increase of $85 million over
last year for activities to respond to the discovery of Bovine
Spongiform Encephalopathy [BSE] in the United States and
Canada. Of this increase, $50 million is in this function for
the Animal and Plant Health Inspection Service. The remaining
$35 million increase is for the Food Safety Inspection Service
and appears in function 550.
The resolution assumes $105 million for PL 480 Title I
funding. This is the same as last year, but $15 million over
the President's request.
The resolution did not accept any of the Administration's
proposed user fees for this function.
The resolution assumes $260 million in discretionary
savings by blocking funding for the Initiative for Future
Agriculture and Food Systems. This proposal was enacted in the
2004 Agriculture Appropriations Bill.
Mandatory
The resolution includes an amendment (by Senator
Grassley) adopted during mark-up to reduce farm program
payments in this function and provide additional funds for
agriculture conservation programs, food nutrition programs and
rural development programs in functions 300, 450 and 600.
House Amendment
The amendment calls for $21.1 billion in budget authority
and $20.5 billion in outlays in fiscal year 2005. The function
totals are $117.7 billion in budget authority and $112.9
billion in outlays over five years. Mandatory spending is $16.3
billion in budget authority and $15.4 billion in outlays in
fiscal year 2005. Over the 2005-2009 period, mandatory spending
increases by $93.4 billion in budget authority and $88.4
billion in outlays. Discretionary spending is $4.8 billion in
budget authority and $5.1 billion in outlays in fiscal year
2005; and over five years, it is $24.3 billion in budget
authority and $24.6 billion in outlays.
Mandatory
The amendment assumes no new mandatory spending
proposals.
Discretionary
The amendment can accommodate full funding for enhanced
efforts to protect the food supply from Bovine Spongiform
Encephalopathy [BSE], or Mad Cow Disease, as well as other
important food safety and agricultural research programs within
function 350. Outyear levels are not binding and will be
revisited in subsequent years.
Conference Agreement
The conference agreement for this function reflects total
spending of $21.8 billion in budget authority and $21.0 billion
in outlays for fiscal year 2005. Mandatory spending for this
function is $16.5 billion in budget authority and $15.5 billion
in outlays in fiscal year 2005. Discretionary spending for this
function is $5.3 billion in budget authority and $5.5 billion
in outlays in fiscal year 2005.
The conference agreement assumes funding for agriculture
related homeland security activities that could accommodate a
substantial increase in Agriculture Research Service.
Function 370: Commerce and Housing Credit
Function Summary
Function 370 includes four components: mortgage credit
(usually negative budget authority because receipts tend to
exceed the losses from defaulted mortgages); the Postal Service
(mostly off budget); deposit insurance (negative outlays
resulting from payment of deposit insurance premiums currently
more than outweigh low outlays for losses); and other
advancement of commerce (the majority of the discretionary and
mandatory spending in this function). This last component
includes most of the Commerce Department, including the
International Trade Administration, Bureau of Economic
Analysis, Patent and Trademark Office, National Institute of
Standards and Technology, National Telecommunications and
Information Administration, and the Bureau of the Census; as
well as independent agencies such as the Securities and
Exchange Commission, the Commodity Futures Trading Commission,
the Federal Trade Commission, the Federal Communications
Commission, and all the activities of the Small Business
Administration that are not related to disaster assistance.
About $7 billion of the spending in function 370 is out
of the FCC's Universal Service Fund, which subsidizes service
to rural and low-income users, high-cost areas, and public
institutions such as schools and libraries. This spending has
no net impact on the deficit because it is offset on the
revenue side of the budget by fees collected by providers of
telecommunications services from their customers.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $1.8 billion in budget authority and -$0.5
billion in outlays for 2005 (several activities in this
function are funded by offsetting collections that exceed the
level of spending). The Senate resolution includes the
following specific assumptions:
The President's requested increases in 2005 (compared to
2004) for conducting the decennial census (45 percent), for
strengthening the Securities and Exchange Commission (12.4
percent), and for making homeland security investments in the
Department of Commerce (4.6 percent).
The President's budget proposes to eliminate the Advanced
Technology Program [ATP] in the Department of Commerce because
private investors are better able than the federal government
to decide which research efforts should be funded. The U.S.
venture-capital markets are the best developed in the world, do
an effective job of funding new ideas, and focus on many of the
same research areas as the ATP. Venture-capital funds have
grown enormously since the ATP was conceived. Therefore, this
proposal is reflected in the Senate resolution.
The President's budget proposes to terminate payments of
tariffs (collected under antidumping or countervailing duty
orders) over to affected industries. Before 2001, these tariffs
were deposited in and retained by the Treasury. Since then, the
tariffs have become mandatory payments. The World Trade
Organization has ruled that such payments violate international
trade agreements. On March 2, 2004, CBO released an analysis of
these payments that said the following:
The Continued Dumping and Subsidy Offset Act
[CDSOA] of 2000 can be expected to result in more
antidumping and countervailing-duty petitions and more
support for those petitions by import-competing
industries. That, in turn, would lead to the initiation
of more AD/CVD cases, the imposition of more duties,
and greater consequent harm to the economy as a whole .
. . Under CDSOA, the firm sees a lower cost than the
true cost to the economy of its output. As a result,
the firm increases its output beyond the point where
the unsubsidized cost to the firm--and thus to the
economy--is balanced by the price. Since the price or
value is less than the cost to the economy of that
additional output, the economic welfare of the country
is reduced . . . Consequently, U.S. gross domestic
product and gross national product decline.
This proposal is assumed in the Senate resolution, saving $1.45
billion in budget authority in 2005.
The Senate resolution reflects the Snowe amendment (SA
2839) adopted by a voice vote in the Senate to increase the
level in this function by $121 million in budget authority in
2005 for programs of the Small Business Administration. The
amendment included a corresponding negative entry for function
920 to result in no net effect on the overall budget.
Mandatory
The Senate resolution assumes no mandatory increases or
decreases in this function.
House Amendment
For on-budget amounts, the House amendment calls for
$10.8 billion in budget authority and $5.8 billion in outlays
in fiscal year 2005. The function totals are $50.0 billion in
budget authority and $23.3 billion in outlays over five years.
Mandatory spending is $9.7 billion in budget authority and $4.8
billion in outlays in fiscal year 2005, and totals $44.4
billion in budget authority and $17.7 billion in outlays over
five years. Discretionary spending is $1.1 billion in budget
authority and $1.0 billion in outlays in fiscal year 2005; and
over five years, it is $5.6 billion in budget authority and
$5.6 billion in outlays.
Discretionary
The Committee on Appropriations will determine how funds
will be apportioned among the various discretionary programs.
Specific programs will be increased or decreased when the
Appropriations subcommittees write their respective bills.
Outyear levels result from applying a simple computation of
modest growth, consistent with the President's budget. Outyear
levels are not binding and will be revisited in subsequent
years.
Mandatory
The House amendment accommodates the following measures:
H.R. 758, the Business Checking Freedom Act, which passed the
House on 1 April 2003; H.R. 522, the Federal Deposit Insurance
Reform Act of 2003, which passed the House on 2 April 2003; and
H.R. 1375, the Financial Services Regulatory Relief Act of
2003, which passed the House on 18 March 2004. All three bills
are awaiting action in the Senate. The assumptions are
reflected in the allocation to the Committee on Financial
Services.
Conference Agreement
For on-budget spending, the conference agreement for this
function reflects $9.3 billion in budget authority and $3.3
billion in outlays for fiscal year 2005. Discretionary spending
for this function is -$0.4 billion in budget authority and
-$0.2 billion in outlays in fiscal year 2005. On-budget
mandatory spending for this function is $9.7 billion in budget
authority and $3.5 billion in outlays in fiscal year 2005.
Including on- and off-budget spending, the conference
agreement for this function reflects total spending of $7.2
billion in budget authority and $1.2 billion in outlays for
fiscal year 2005. Discretionary spending for this function is
-$0.4 billion in budget authority and -$0.2 billion in outlays
in fiscal year 2005. Mandatory spending for this function is
$7.6 billion in budget authority and $1.4 billion in outlays in
fiscal year 2005.
Function 400: Transportation
Function Summary
Function 400 includes the Federal Highway Administration;
the Federal Transit Administration; the National Rail Passenger
Corporation [Amtrak]; highway, motor carrier and rail safety
programs; the Federal Aviation Administration; the aeronautical
activities of the National Aeronautics and Space
Administration; the Coast Guard; and the Maritime
Administration.
Function 400 budget authority rose from $51.6 billion in
1999 to $69.2 billion in fiscal year 2004, a 6.1 percent
average annual growth rate. During the same time period,
outlays rose from $42.5 billion to $65.7 billion, a 9.1 percent
average annual growth rate.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $23.8 billion in budget authority and $66.2
billion in outlays for 2005. This represents an increase of
$0.1 billion in budget authority and $2.3 billion in outlays
from the 2004 level.
The Senate resolution reflects the President's full
request for the homeland security activities in this function
(a 13.2 percent increase over 2004).
Discretionary and Mandatory
The budgetary presentation of federal transportation
programs is complicated by the fact that most of the budget
authority for the programs is (because of committee
jurisdictions) classified as mandatory while the related
outlays are considered discretionary. The Senate-passed surface
transportation bill for highways and transit (S. 1072--SAFETEA)
exceeded the level allowed by the fiscal year 2004 budget
resolution by $41 billion in contract authority over 2004-2009.
In addition, the bill would increase the deficit by spending a
net of $30 billion (over the next six years) more than the
highway trust fund revenues that would be collected under
current law (estimated to be $228 billion over 2004-2009, only
a 14.6 percent increase over the $199 billion in highway trust
fund receipts that were collected over 1998-2003 during TEA-
21.)
The Administration has informed Congress that the
President's senior advisors would recommend that he veto S.
1072 as passed by the Senate. In light of this veto threat, the
Senate resolution reflects the President's request for surface
transportation mandatory contract authority (with related
outlays on the discretionary side of the budget) for the next
five years. As in the 2004 budget resolution, the Senate
resolution for 2005 includes a mechanism by which these initial
levels could be increased if legislation is considered by the
Senate that would levy and deposit net new transportation user
fee revenues (which are not already being collected by the
federal government under current law) into the Highway Trust
Fund.
The President's proposal for the transportation
reauthorization bill is $256 billion (in terms of the figures
usually discussed, this includes both contract authority as
well as an authorization of $8 billion in discretionary budget
authority for transit programs for 2004-2009). This is a 17
percent increase over the total level enacted in the previous
authorization bill [TEA-21], which was $218 billion for 1998-
2003. In contrast, according to the CBO estimate of the bill as
passed by the Senate, S. 1072 totals $322 billion (including
discretionary budget authority for transit), which is a 48
percent increase over TEA-21 and is 26 percent more than the
President's request.
House Amendment
The House amendment calls for $65.0 billion in budget
authority and $62.0 billion in outlays in fiscal year 2005. The
function totals are $339.4 billion in budget authority and
$328.3 billion in outlays over five years. Mandatory spending
is $47.2 billion in budget authority and $2.0 billion in
outlays in fiscal year 2005, and totals $249.6 billion in
budget authority and $8.8 billion in outlays over five years.
Discretionary spending is $17.8 billion in budget authority and
$60.0 billion in outlays in fiscal year 2005; and over five
years, it is $89.8 billion in budget authority and $319.5
billion in outlays. Homeland security components formerly found
in Function 400--including the Transportation Security
Administration, the United States Coast Guard, and the Federal
Air Marshals--are recorded in Function 100: Homeland Security,
and are consistent with the President's request.
Discretionary
Specific programs will be increased or decreased when the
Appropriations subcommittees write their respective bills.
Outyear levels are not binding and will be revisited in
subsequent years.
Mandatory
The House amendment creates a reserve fund that allows
the chairman of the House Budget Committee to adjust the
allocation of budget authority to the Committee on
Transportation and Infrastructure for any measure that
reauthorizes surface transportation programs and provides new
budget authority for highway and transit spending. The
adjustment may only be made if it is offset by changes in law,
either included in the same measure or by previously enacted
legislation. The language in the House amendment regarding this
contingency measure is identical to that included in the budget
resolution for fiscal year 2004.
The House amendment assumes a stream of mandatory budget
authority for a reauthorization of surface transportation
programs. It also creates a reserve fund to provide additional
budget authority for such a bill to the extent that it is
offset in the same or other legislation.
Conference Agreement
The conference agreement for this function reflects total
spending of $71.8 billion in budget authority and $68.6 billion
in outlays for fiscal year 2005. Discretionary spending for
this function is $24.1 billion in budget authority and $66.4
billion in outlays in fiscal year 2005. Mandatory spending for
this function is $47.7 billion in budget authority and $2.2
billion in outlays in fiscal year 2005.
Regarding the levels for the reauthorization of the
highway bill, the Senate recedes to the House. The conference
agreement includes an adjustment mechanism (section 311) to
accommodate higher spending than the levels assumed in the
conference agreement to the extent the additional spending is
offset through reduced outlays from, or additional receipts to,
the Highway Trust Fund.
Function 450: Community and Regional Development
Function Summary
Function 450 includes programs that provide Federal
funding for economic and community development in both urban
and rural areas, including: Community Development Block Grants
[CDBGs]; the non-power activities of the Tennessee Valley
Authority; the non-roads activities of the Appalachian Regional
Commission; the Economic Development Administration [EDA]; and
partial funding for the Bureau of Indian Affairs. Funding for
disaster relief and insurance--including the Federal Emergency
Management Agency [FEMA], now part of the Department of
Homeland Security [DHS]--also appear here.
Function 450 budget authority rose from $11.3 billion in
fiscal year 1999 to $16.7 billion in fiscal year 2004, an 8.2
percent average annual growth rate. During the same time
period, outlays rose from $11.9 billion to $16.7 billion, a 7
percent average annual growth rate.
A factor in this growth was the presence of Federal
Emergency Management Agency [FEMA] funding for first responders
and one-time New York City recovery funds in the wake of the
events of 9-11.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $13.5 billion in budget authority and $15.2
billion in outlays for 2005, a decrease of $2.2 billion in
budget authority and $0.9 billion in outlays from the 2004
level. The Senate resolution includes the following specific
assumptions:
For the Office of Domestic Preparedness, the Senate
resolution fully supports the President's proposal for first
responders and assumes $3.6 billion to ensure that they are
properly trained and equipped. This includes $500 million for
assistance to firefighters and $500 million for state and local
law enforcement antiterrorism activities. Since 2001, Congress
has appropriated close to $15 billion (or $20 billion if
programs outside the Department of Homeland Security are
included) for state and local first responders. The Senate
notes with concern reports about misuse of money provided to
states and localities under this program and supports policies
to ensure these funds are being properly spent.
The Senate resolution assumes $3.0 billion in 2005 for
disaster relief activities. This level is consistent with the
average annual cost of (non-terrorist) disaster events over the
past five years. This includes $2.2 billion in new budget
authority, as well as money left over from prior years. This
$2.2 billion in new money represents an increase of $384
million, or 21.7 percent, over the 2004 level.
The Senate resolution supports the pre-disaster
mitigation grant program that helps communities prevent, rather
than react to, disasters. The Senate resolution assumes $169
million for the program, an amount equal to last year's level.
The Senate resolution assumes continuation of the
Community Development Block Grant Program, but proposes to
target CDBG entitlement grants to lower income communities.
The Senate resolution reflects a Dorgan amendment, (SA
2850) adding $260 million in budget authority in 2005 (and in
each year thereafter through 2009) for a new Homestead Venture
Capital Fund.
Mandatory
The Senate resolution assumes a savings proposal that
would deny federal flood insurance for certain repeatedly
flooded properties. The National Flood Insurance Program [NFIP]
currently insures roughly 45,000 repeatedly flooded properties,
representing about 1 percent of all policies in force but
accounting for a much larger share of annual flood losses.
House Amendment
The House amendment calls for $11.9 billion in budget
authority and $14.2 billion in outlays in fiscal year 2005. The
function totals are $58.7 billion in budget authority and $61.2
billion in outlays over five years. Mandatory spending is $402
million in budget authority and -$183 million in outlays in
fiscal year 2005, and totals $780 million in budget authority
and -$924 million in outlays over five years. The negative
figures appear because of receipts to revolving loan funds.
Discretionary spending is $11.5 billion in budget authority and
$14.4 billion in outlays in fiscal year 2005; and over five
years, it is $57.9 billion in budget authority and $62.2
billion in outlays.
Mandatory
The House amendment assumes no new mandatory spending
proposals.
Discretionary
The House amendment does not assume specific levels for
individual discretionary programs within Function 450. Instead,
$11.5 billion in budget authority and $14.4 billion in outlays
in fiscal year 2005 is assumed for overall discretionary
spending within the function. The Committee on Appropriations
will determine how these funds will be apportioned among the
various discretionary Community and Regional Development
programs. Outyear levels are not binding and will be revisited
in subsequent years.
Conference Agreement
The conference agreement for this function reflects total
spending of $13.6 billion in budget authority and $17.4 billion
in outlays. Mandatory spending for this function is $0.4
billion in budget authority and -$0.2 billion in outlays in
fiscal year 2005. Discretionary spending for this function is
$13.2 billion in budget authority and $17.6 billion in outlays
in fiscal year 2005.
Function 500: Education, Training, Employment, and Social Services
Function Summary
Function 500 primarily covers federal spending within the
Departments of Education, Labor, and Health and Human Services
for programs that directly provide--or assist states and
localities in providing--services to young people and adults.
Its activities provide developmental services to low-income
children; help fund programs for disadvantaged and other
elementary and secondary school students, make grants and loans
to post secondary students, and fund job-training and
employment services for people of all ages.
Function 500 budget authority rose from $55.5 billion in
1999 to $89.5 billion in 2004, a 10 percent average annual
growth rate. During the same period, outlays rose from $50.6
billion to $86.5 billion, an 11.3 percent average annual growth
rate.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $83.9 billion in budget authority and $78.3
billion in outlays for 2005. This represents an increase of
$5.9 billion (7.5 percent) in budget authority and $1.2 billion
in outlays from the 2004 level. The resolution includes the
following specific assumptions:
Consistent with the President's proposals, the increases
assumed in the Senate resolution would bring our Nation's
overall investment in elementary and secondary education to
nearly $500 billion, surpassing spending on our national
defense and exceeding per-pupil education spending of every
other nation except Switzerland.
The Senate resolution includes $13.3 billion in 2005 for
Title I grants to Local Education Agencies [LEAs]--the largest
component of the No Child Left Behind Act. The $1.0 billion
(8.1 percent) increase over 2004 would fund services to
disadvantaged students and improvements for low-performing
schools. At this level, funding for Title I grants would be
$4.6 billion (52 percent) greater than in 2001.
The Senate resolution would increase funding for Part B
Grants to States for individuals with disabilities by $1.0
billion in each of the next two years. This is the fourth in a
series of consecutive $1.0 billion annual increases, which
cumulatively have raised the Federal share of average per pupil
expenditures to nearly 20 percent, the highest level of Federal
support ever provided to disabled children. With 2005 funding
at $11.1 billion, funding for Part B Grants would reflect an
increase of $4.7 billion (75 percent) since 2001.
The Senate resolution does not incorporate any of the
President's program terminations. However, the resolution
supports the President's effort to eliminate duplicative and
unproductive programs and encourage the Appropriations
Committees to carefully examine these proposals to maximize
efficient use of taxpayer dollars during this challenging
budget cycle.
For Pell Grants, the Senate resolution assumes a $2.7
billion increase over 2004, which provides a total of $14.7
billion to fully fund a $4,500 maximum award. This level
reflects the Senate's adoption of the Coleman amendment (SA
2821), which increased the level assumed for Pell Grants by
$1.9 billion. The amendment included a corresponding negative
entry for function 920 to result in no net effect on the
overall budget. In recent years, the shortfall in the Pell
Grant program has grown dramatically due to insufficient
appropriations. The program may not continue to be financially
viable unless this shortfall is addressed.
The resolution also incorporates the $0.9 billion cost of
Senators Dorgan and Brownback's American Heartland amendment
(SA 2850), which provides 50% loan forgiveness to recent
graduates who live and work in out migration counties. In
addition, the resolution incorporates the cost of the Enzi-
Cantwell amendment (SA 2832), which added $250 million in 2005
for job training funding under the Workforce Investment Act.
Currently, the administrative expenses of the Federal
Direct Student Loan Program receive a permanent mandatory
appropriation. No other federal credit program has such a
mandatory appropriation for administrative expenses. Instead,
they are subject to annual review by the Appropriations
committee. The Senate resolution, consistent with the
President's proposal, assumes shifting the $795 million in
mandatory spending for these administrative expenses (Sec. 458)
to an annual discretionary appropriation.
The resolution recognizes how important the Impact Aid
Program is for school districts serving the needs of federally
connected children throughout the country especially the
emotional and family needs of military dependent children
during this time of conflict in Iraq. The resolution urges that
sufficient resources be provided allowing school districts to
maintain the same level of service as what they were able to
provide in fiscal year 2004.
Mandatory
The Senate resolution provides a reserve fund to
facilitate consideration of the Higher Education
Reauthorization. This fund provides a total of $5 billion to
the Health, Education, Labor and Pensions [HELP] Committee for
the 2005-2009 period. These funds may be used to increase
student loan limits, reduce borrower origination fees or
maintain the existing variable rate interest structure for
Stafford loans after 2006.
House Amendment
The amendment calls for $92.5 billion in budget authority
and $90.5 billion in outlays in fiscal year 2005. The function
totals are $470.5 billion in budget authority and $465.4
billion in outlays over 5 years. Mandatory spending is $11.8
billion in budget authority and $10.0 billion in outlays in
fiscal year 2005, and totals $63.0 billion in budget authority
and $55.5 billion in outlays over 5 years. Discretionary
spending is $80.7 billion in budget authority and $80.5 billion
in outlays in fiscal year 2005, and totals $407.4 billion in
budget authority and $409.9 billion in outlays over 5 years.
Mandatory
The assumptions accommodate H.R. 438, the Teacher
Recruitment and Retention Act of 2003, which passed the House
on 9 July 2003 and is awaiting action in the Senate. The
assumption is reflected in the allocation to the Committee on
Education and the Workforce, which is free to determine its own
policies within the allocation limits.
Discretionary
The amendment gives Function 500 priority status within
the overall framework of level funding for fiscal year 2005 in
non-defense, non-homeland-security spending. The resolution
calls for an increase from level funding of $2.8 billion in
budget authority and $3.6 billion in outlays. This increase is
intended to accommodate increases in the funding levels for
priority programs, such as special education state grants,
Title I grants to local education agencies, and Pell Grants for
low-income college students. Outyear levels are not binding and
will be revisited in subsequent years.
Conference Agreement
The conference agreement for this function reflects total
spending of $92.8 billion in budget authority and $90.7 billion
in outlays for fiscal year 2005. Mandatory spending for this
function is $11.8 billion in budget authority and $10.0 billion
in outlays in fiscal year 2005. Discretionary spending for this
function is $81.0 billion in budget authority and $80.7 billion
in outlays in fiscal year 2005.
The conference agreement provides sufficient funding to
accommodate increases consistent with the President's budget
for Title I grants to local education agencies and state grants
for special education. In addition, the conference agreement
recognizes the importance of Pell Grants for low-income
undergraduates and will continue to work with the
Appropriations Committee and other interested parties to ensure
it is a financially sound and robust program.
While the conferees support the Federal student loan
programs, the conference is concerned that the Ford Direct Loan
Program's subsidy estimates do not reflect the program's true
cost to the Federal Government. Therefore the conferees support
the Department of Education's continuing efforts to refine and
improve its cost estimating techniques.
The conference agreement assumes additional funding for
the Workforce Investment Act (this could accommodate additional
funding for WIA consistent with the Enzi amendment # 2832.)
Function 550: Health
Function Summary
Function 550 consists of health care services, including
Medicaid, the Nation's major program covering medical and long-
term care costs for low-income persons; the State Children's
Health Insurance Program [SCHIP], health research and training,
including the National Institutes of Health [NIH] and substance
abuse prevention and treatment; and consumer and occupational
health and safety, including the Occupational Safety and Health
Administration. Medicaid represents about 72 percent of the
spending in this function.
Function 550 budget authority rose from $142.2 billion in
1999 to $241.8 billion in 2004, an 11.2 percent average annual
growth rate. During the same time period, outlays rose from
$141.1 billion to $239.6 billion, an 11.2 percent average
annual growth rate. The largest component of this was the
budget of the Medicaid, for which federal payments grew from
$108.0 billion in 1999 to $173.9 billion in fiscal year 2004, a
10 percent average annual increase.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of 55.1 billion in budget authority and $50.4
billion in outlays for 2005. The resolution includes the
following specific assumptions:
The Omnibus Appropriations Bill of 2003 completed the
planned five-year doubling of the NIH budget from $13.7 billion
in 1998 to $27.2 billion in 2003. The Senate resolution
includes an additional increase in 2005, bringing the total NIH
funding to $28.7 billion. As part of this, the resolution
assumes $1.7 billion for NIH biodefense efforts, an increase of
7.5 percent over 2004.
The resolution also assumes a $35 million increase in
food safety and inspections at USDA. These funds will help USDA
detect and prevent BSE (mad cow disease) as well as help detect
bioterrrorism.
The resolution also includes two one-year changes in
Medicaid to offset 2005 discretionary spending. The first is a
reduction in the federal medical assistance percentage [FMAP]
for information systems from a 90 percent to 75 percent federal
share. The second is a reduction in federal reimbursement for
the administrative costs of Medicaid to reflect the share
assumed in the Temporary Assistance for Needy Families [TANF]
block grant and prohibit states from using TANF funds to pay
those costs in 2005.
The Senate adopted an amendment (SA 2780) by Senator
Clinton creating a deficit-neutral reserve fund for
appropriations addressing minority health disparities.
The Senate adopted an amendment (SA 2741) by Senator
Specter to increase the level in this function by $1.3 billion
in budget authority in 2005 for the National Institutes of
Health. The amendment included a corresponding negative entry
for function 920 to result in no net effect on the overall
budget.
The Senate adopted an amendment (SA 2822) by Senator
Murkowski to increase the level in this function by $282
million in budget authority in 2005 for Indian Health Services.
The amendment included a corresponding negative entry for
function 920 to result in no net effect on the overall budget.
The Senate adopted an amendment (SA 2794) by Senator
Thomas to increase the level in this function by $100 million
in budget authority in 2005 for rural health programs. The
amendment included a corresponding negative entry for function
920 to result in no net effect on the overall budget.
Mandatory
The Senate-passed resolution provides for a one-year
extension of the QI-1 program, under which Medicaid pays the
Medicare Part B premium for low-income beneficiaries.
The Senate recognizes that the Temporary Assistance for
Needy Families [TANF] reauthorization is likely this year, and
that the reauthorization will be paid for with spending
reductions and not increase the deficit.
The Senate also notes that there is great potential for
savings in the Medicaid program due to waste and abuse in the
system. The Senate points out that many states are using
Medicaid funds to provide health care to low-income individuals
and understands the need to balance all issues when addressing
this issue.
The resolution also includes a deficit-neutral reserve
fund for legislation that addresses access to health-care
services and health insurance for the uninsured. This reserve
fund allows the chairman of the Budget Committee to adjust
applicable allocations and aggregates to accommodate this
legislation if the Committee on Finance or the Committee on
Health, Education, Labor, and Pensions reports a bill that
provides health insurance for the uninsured or that increases
access to health insurance through lowering costs--provided
that any such measure does not increase the costs of current
health coverage.
The Senate understands that protecting patients' access
to quality and affordable health care by reducing the effects
of excessive liability costs is important to improve access to
health-care providers and reduce health-care costs. The Senate
encourages the committees of jurisdiction to examine such
concepts as sensible limits on non-economic damages and
reserving punitive damages for case that justify them.
Public and private health plans and employers pay the
medical expenses of insured individuals when they are injured
by a third party, but in these circumstances public and private
health plans and employers are entitled under federal law to be
repaid if the individual later recovers damages from the third
party causing the injury. The right of recovery is an important
means to restore federal revenue, to contain private health
plan and employer costs and to reduce health care premiums for
individuals. The Senate understands the recovery rights of
federal health programs (Medicare, FEHPB and M+C) and private
health plans have been eroded by recent court decisions. The
result is higher federal and private health plan costs. Last
year, Congress acted to shore up the Medicare program's
recovery right. The Senate encourages the committees of
jurisdiction to examine proposals that will strengthen the
right of recovery for federal programs and private health plans
and employers.
The Senate adopted an amendment (SA 2699) by Senator
Kennedy that allows legislation that maintained expiring SCHIP
funds to be included in the reserve fund for the uninsured.
The Senate adopted an amendment (SA 2833) by Senator
Bingaman that establishes a deficit-neutral reserve fund for
legislation reforming the vaccines for children program.
House Amendment
The House amendment calls for $245.1 billion in budget
authority and $244.9 billion in outlays in fiscal year 2005.
The function totals are $1.353 trillion in budget authority and
$1.350 trillion in outlays over 5 years. Mandatory spending is
$198.8 billion in budget authority and $198.9 billion in
outlays in fiscal year 2005, and totals $1.119 trillion in
budget authority and $1.120 trillion in outlays over 5 years.
Discretionary spending is $46.3 billion in budget authority and
$46.1 billion in outlays in fiscal year 2005; and over 5 years,
it is $233.9 billion in budget authority and $230.4 billion in
outlays.
Mandatory
The assumptions accommodate H.R. 4, the Personal
Responsibility, Work, and Family Promotion Act of 2003, which
passed the House on 13 February 2003, and is awaiting action in
the Senate. The assumption is necessary to allow for a
potential conference agreement. The assumption is reflected in
the allocation to the Committee on Energy and Commerce.
Discretionary
The Committee on Appropriations will determine how funds
will be apportioned among the various discretionary programs.
Specific programs will be increased or decreased when the
Appropriations subcommittees write their respective bills.
Outyear levels are not binding and will be revisited in
subsequent years.
Reserve Fund
The House amendment provides a reserve fund to reflect
the savings from legislation that has passed the House of
Representatives and is pending in the Senate ``that provides
for the safe importation of FDA-approved prescription drugs or
places limits on medical malpractice litigation.'' This reserve
fund affects Function 570 as well as Function 550.
The adjustment will be made by the chairman of the
Committee on the Budget to the allocations and aggregates to
reflect any resulting savings from any such measure. The effect
of any adjustment would be to lock in the savings for deficit
reduction. The chairman of the Budget Committee will consult
with the committees of jurisdiction before making any
adjustments pursuant to this section.
The House amendment also provides a deficit-neutral
reserve fund for the period of fiscal years 2005-2009 for
legislation that addresses access to health care services and
health insurance for the uninsured. The reserve fund is needed
to allow an initiative for the uninsured to come to the floor
as long as it is deficit neutral in the first year and over the
5-year period.
The House amendment also provides a reserve fund for the
Family Opportunity Act. If legislation is reported by the
Energy and Commerce Committee that provides Medicaid coverage
for children with special needs (the Family Opportunity Act),
the chairman of the Budget Committee may adjust the levels in
the allocations and aggregates to the extent such legislation
is deficit neutral in fiscal year 2005, and the period of
fiscal years 2005-2009. The reserve fund would allow these
initiatives to come to the floor with offsets, as long as that
initiative is deficit neutral in the first year and over the 5-
year period.
Conference Agreement
The conference agreement for this function reflects total
spending of $252.4 billion in budget authority and $250.0
billion in outlays for fiscal year 2005. Mandatory spending for
this function is $199.1 billion in budget authority and $199.2
billion in outlays in fiscal year 2005. Discretionary spending
for this function is $53.3 billion in budget authority and
$50.8 billion in outlays in fiscal year 2005.
The conference agreement can accommodate a 1-year
extension of the QI-1 program. It also includes a deficit-
neutral reserve fund for the enactment of the Family
Opportunity Act for both the House and the Senate. Finally, the
agreement recognizes the importance of addressing the problem
of the uninsured and includes two separate reserve funds, one
for the House and one for the Senate.
Function 570: Medicare
Function Summary
Function 570 reflects the Medicare Part A Hospital
Insurance [HI] Program, Part B Supplementary Medical Insurance
[SMI] Program, and premiums paid by qualified aged and disabled
beneficiaries. In addition, with the enactment of H.R. 1 last
year, the Medicare Advantage Program replaced Medicare+Choice
under Part C and a new Voluntary Prescription Drug Benefit
Program was established under Part D of Medicare. Prior to
implementation of the new drug benefit in 2006, certain low-
income seniors will be eligible for transitional low-income
drug assistance of up to $600 in conjunction with their
prescription drug discount card.
Function 570 budget authority rose from $190.6 billion in
1999 to $269.6 billion in 2004, a 7.2 percent average annual
growth rate. During the same time period, outlays rose from
$190.4 billion to $268.8 billion, a 7.1 percent average annual
growth rate. This function consists entirely of the Medicare
program.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $3.7 billion in budget authority and $3.7
billion in outlays for 2005. This represents a decrease of $0.2
billion in budget authority and $0.1 billion in outlays from
the 2004 level. The resolution includes the following specific
assumptions:
The resolution assumes three relatively minor changes
proposed by the President to offset discretionary spending.
These are user fees relating to claims, a change to the
Medicare secondary payer [MSP], and a change in durable medical
equipment. These proposals would save approximately $1 billion
over the next five years.
The Senate resolution recognizes the importance of the
proper and timely implementation of the Medicare Prescription
Drug, Improvement, and Modernization Act of 2003, P.L. 108-173
and assumes increased funding for administering this new
program in 2005 and beyond.
The Senate resolution also recognizes the importance of
the administrative funding for the Social Security
Administration included in this function, and assumes the
increased funding proposed by the President.
House Amendment
The House amendment calls for $288.2 billion in budget
authority and $289.1 billion in outlays in fiscal year 2005.
The function totals are $1.776 trillion in budget authority and
$1.776 trillion in outlays over 5 years. Mandatory spending is
$284.0 billion in budget authority and $285.1 billion in
outlays in fiscal year 2005, and totals $1.755 trillion in
budget authority and $1.756 trillion in outlays over 5 years.
Discretionary spending is $4.1 billion in budget authority and
$4.0 billion in outlays in fiscal year 2005; and over 5 years,
it is $20.9 billion in budget authority and $20.7 billion in
outlays.
Mandatory
The House amendment assumes growth in mandatory spending
to accommodate projected caseloads, inflation, and other normal
factors. It also provides for the continuation of the new
modernization of Medicare with prescription drug coverage that
was enacted by the President and Congress last year. The
assumptions appear in the allocations of the respective
committees of jurisdiction, which limit the amount that
programs can be increased. The authorizing committees are free
to determine their own policies, so long as they stay within
the allocation limits.
Discretionary
The House amendment gives Function 570 priority status
within the overall framework of level funding for fiscal year
2005 in non-defense, non-homeland-security spending.
Consequently, the amendment calls for an increase from level
funding of $302 million in budget authority and $199 million in
outlays. This amount accommodates the President's request for
Function 570 discretionary--including the President's $100-
million request for additional funds for prescription drug
administrative costs--without including any of the President's
offsets. Outyear levels are not binding and will be revisited
in subsequent years.
Reserve Fund
The House amendment provides a reserve fund to reflect
the savings from legislation that has passed the House of
Representatives and is pending in the Senate ``that provides
for the safe importation of FDA-approved prescription drugs or
places limits on medical malpractice litigation.'' This reserve
fund affects Function 550 as well as Function 570.
The adjustment will be made by the chairman of the
Committee on the Budget to the allocations and aggregates to
reflect any resulting savings from any such measure. The effect
of any adjustment would be to lock in the savings for deficit
reduction. The chairman of the Budget Committee will consult
with the committees of jurisdiction before making any
adjustments pursuant to this section.
Conference Agreement
The conference agreement for this function reflects total
spending of $287.9 billion in budget authority and $289.0
billion in outlays for fiscal year 2005. Mandatory spending for
this function is $284.0 billion in budget authority and $285.1
billion in outlays in fiscal year 2005. Discretionary spending
for this function is $3.9 billion in budget authority and $3.9
billion in outlays in fiscal year 2005. The conference
agreement assumes the QI-1 program will be extended for one
year.
Function 600: Income Security
Function Summary
Function 600 includes most of the Federal Government's
income support programs. These include: general retirement and
disability insurance (excluding Social Security)--mainly
through the Pension Benefit Guaranty Corporation--and benefits
to railroad retirees. Other components are Federal employee
retirement and disability benefits (including military
retirees); unemployment compensation; low-income housing
assistance, including section 8 housing; food and nutrition
assistance, including food stamps and school lunch subsidies;
and other income security programs.
This last category includes: Temporary Assistance for
Needy Families [TANF]; Supplemental Security Income [SSI];
spending for the refundable portion of the Earned Income Credit
[EIC]; and the Low Income Home Energy Assistance Program
[LIHEAP]. Agencies involved in these programs include the
Departments of Agriculture, Health and Human Services, Housing
and Urban Development, the Social Security Administration (for
SSI), and the Office of Personnel Management (for Federal
retirement benefits).
Function 600 budget authority rose from $243.5 billion in
1999 to $329.3 billion in 2004, a 6.2 percent average annual
growth rate. During the same period, outlays rose from $242.4
billion to $336.1 billion, a 6.8 percent average annual growth
rate.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $46.4 billion in budget authority and $51.4
billion in outlays for 2005. This represents an increase of
$1.8 billion in budget authority and a decrease of $1.7 billion
in outlays from the 2004 level. The Senate resolution includes
the following specific assumptions:
The Senate resolution incorporates the President's
funding proposal for the Special Supplemental Nutrition Program
for Women, Infants and Children [WIC]. The resolution provides
$4.8 billion in 2005, an increase of $175 million from 2004, or
3.8 percent.
The Senate resolution assumes the President's funding
level for the Low Income Home Energy Assistance Program. The
resolution assumes $2 billion in 2005, a $112 million (6
percent) increase.
The Senate resolution assumes the President's proposed
funding level of $2.1 billion for discretionary payments to the
States for the Child Care Development and Block Grant Program.
This represents a $13 million increase from 2004.
Under the Senate resolution, sufficient budget authority
and outlays are provided to renew all utilized section 8
housing contracts. The resolution does not reflect the
Administration's block grant proposal (consistent with
Congressional action in 2004 appropriations on a similar
proposal in 2004 budget request). The Senate resolution assumes
the President's proposal to complete the phase-out of funding
for revitalization of severely distressed public housing [HOPE
VI] because the program has achieved its goal of demolishing
100,000 severely distressed public housing units by 2003.
Mandatory
The Senate resolution assumes $18 billion in additional
outlays (over five years) that are related to the President's
proposal to extend the $1,000 child credit and marriage penalty
relief.
The Senate resolution recognizes that TANF
reauthorization is likely this year and assumes that the
reauthorization will be paid for with spending cuts and will
not increase the deficit. The Senate is supportive of efforts
to recognize and develop the role of self-sustainable social
services, such as Goodwill, which are critical in the success
of moving welfare recipients to work.
The Senate resolution also assumes aspects of the
President's proposal to enhance Child Support Enforcement
collections. These efforts will increase collections and direct
more of the support collected to children and families.
The Senate resolution recognizes that the Child Nutrition
program is likely to be reauthorized this year, and assumes
$11.7 billion for these programs in 2005. The Senate resolution
also assumes $232 million for fiscal years 2005-2009 for the
continued cost of excluding certain military housing allowances
from income when determining eligibility for free and reduced-
price school meals, and allowing for-profit child care centers
to participate in the Child and Adult Care Food Program
[CACFP]. By voice vote, the Senate adopted an amendment (SA
2844, offered by Senator Dole) to increase the level in this
function by $842 million in budget authority from 2005-2009 for
Child Nutrition Programs. The amendment included a
corresponding reduction for function 920 to result in no net
effect on the overall budget.
The Senate resolution assumes the President's proposal
for an administrative fee for non-TANF child support
collections of at least $500, saving $199 million over 5 years.
The Senate resolution assumes the President's funding
level of $28.3 billion for the Food Stamp program in 2005.
The Senate resolution incorporates the Administration's
plan to change the Federal Employee Compensation [FECA] benefit
structure and reform proposal.
The Senate resolution assumes savings from reform of the
Earned Income Credit. The cost of the EIC has skyrocketed in
recent years due to program expansions, fraud, and errors, with
total program costs growing from $6.6 billion in 1990 to nearly
$36 billion in 2003. IRS and GAO estimate that over-claim rates
on 1999 tax returns were about 30 percent.
The Senate resolution assumes $665 million over five
years in new mandatory spending for Food and Nutrition
Programs.
House Amendment
The House amendment calls for $337.3 billion in budget
authority and $341.7 billion in outlays in fiscal year 2005.
The function totals are $1.728 trillion in budget authority and
$1.742 trillion in outlays over 5 years. Mandatory spending is
$291.5 billion in budget authority and $290.7 billion in
outlays in fiscal year 2005, and totals $1.496 trillion in
budget authority and $1.492 trillion in outlays over 5 years.
Discretionary spending is $45.8 billion in budget authority and
$51.0 billion in outlays in fiscal year 2005; and over 5 years,
it is $231.4 billion in budget authority and $250.3 billion in
outlays.
Discretionary
The Committee on Appropriations will determine how these
funds will be apportioned among the various discretionary
income security programs. Outyear levels are not binding and
will be revisited in subsequent years.
Mandatory
The assumptions accommodate H.R. 4, the Personal
Responsibility, Work, and Family Promotion Act of 2003, which
passed the House on 13 February 2003; H.R. 7, the Charitable
Giving Act of 2003, which passed the House on 17 September
2003; and H.R. 1000, the Pension Security Act of 2003, which
passed the House on 14 May 2003. All three measures are
awaiting action in the Senate. The assumptions also accommodate
H.R. 3108, the Pension Funding Equity Act of 2003, which passed
the House on 8 October 2003 and was in conference with the
Senate at the time the House considered the budget resolution.
These accommodations are necessary to allow for potential
conference agreements.
The assumptions are reflected in the allocations to the
respective committees of jurisdiction, which limit the amount
that programs can be increased.
Conference Agreement
The conference agreement for this function reflects total
spending of $339.2 billion in budget authority and $345.7
billion in outlays for fiscal year 2005. Mandatory spending for
this function is $292.8 billion in budget authority and $291.6
billion in outlays in fiscal year 2005. Discretionary spending
for this function is $46.4 billion in budget authority and
$54.1 billion in outlays in fiscal year 2005.
Discretionary
The level of discretionary spending in the conference
agreement could allow for the President's funding proposal for
the Special Supplemental Nutrition Program for Women, Infants,
and Children [WIC] and for the Low Income Home Energy
Assistance Program. The conference agreement also provides a
level that could allow for the President's proposal for
discretionary payments to the states for the Child Care and
Development Grant Program.
Mandatory
The conference agreement assumptions accommodate H.R. 4,
the Personal Responsibility, Work, and Family Promotion Act of
2003, which passed the House in February 2003. The conference
agreement also accommodates assumptions in H.R. 3873, which
continues the cost of excluding certain military housing
allowances from income when determining eligibility for free
and reduced-price school meals, and allowing for-profit child
care centers to participate in the Child and Adult Care Food
Program, but could also be used to fund other Child Nutrition
programs, such as funding additional school lunches.
Function 650: Social Security
Function Summary
Function 650 consists of the Social Security program, or
Old-Age, Survivors, and Disability Insurance, the Government's
largest entitlement program. Social Security consists of two
parts, each tied to a trust fund. The Old-Age and Survivors
Insurance program provides monthly benefits to eligible retired
workers and their families and survivors. The Disability
Insurance program provides monthly benefits to eligible
disabled workers and their families.
Under provisions of the Budget Enforcement Act, Social
Security trust funds are off budget.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $4.2 billion in budget authority and $4.3
billion in outlays for 2005. This represents an increase of 2.8
percent, or $0.1 billion, in budget authority compared to 2004.
Mandatory
The Senate resolution assumes the President's proposal to
close an existing loophole that allows former state and local
employees to receive their public pension and Social Security
benefits even though they did not pay Social Security taxes.
The resolution assumes the President's proposal to improve the
reporting of non-covered pension income through pension
administrators for state and local pensions sharing information
with the Social Security Administration.
House Amendment
The amendment calls for $15.1 billion in budget authority
and $15.1 billion in outlays in fiscal year 2005. The function
totals are $91.7 billion in budget authority and $91.7 billion
in outlays over five years. All of this spending is mandatory;
all discretionary spending in function 650 is off budget, but
is included in the section 302(a) allocation to the Committee
on Appropriations.
Mandatory
There are no specific mandatory assumptions in this
function.
Discretionary
The Committee on Appropriations will determine how funds
in this function are apportioned. Outyear levels are not
binding and will be revisited in subsequent years.
Conference Agreement
For on-budget spending, the conference agreement for this
function reflects $15.2 billion in budget authority and outlays
for fiscal year 2005. Mandatory spending for this function is
$15.2 billion in budget authority and outlays in fiscal year
2005. There is no on-budget discretionary spending for this
function.
Including on- and off-budget spending, the conference
agreement reflects a total of $518.9 billion in budget
authority and $517.2 billion in outlays for fiscal year 2005.
Mandatory spending for this function is $514.7 billion in
budget authority and $512.9 billion in outlays in fiscal year
2005. Discretionary spending for this function is $4.2 billion
in budget authority and $4.3 billion in outlays in fiscal year
2005.
Function 700: Veterans Benefits and Services
Function Summary
Function 700 includes funding for the Department of
Veterans Affairs [VA], which provides benefits to veterans who
meet various eligibility rules. Benefits range from income
security for veterans, principally disability compensation and
pensions; veterans education, training, and rehabilitation
services; hospital and medical care for veterans; and other
veterans benefits and services, such as home loan guarantees.
There are about 25 million veterans.
Function 700 budget authority rose from $44.2 billion in
1999 to $61.5 billion in 2004, a 6.8 percent average annual
growth rate. During the same time period, outlays rose from
$43.2 billion to $60.1 billion, a 6.8 percent average annual
growth rate. The two largest components of this growth were
veterans medical care, whose budget authority grew from $17.8
billion in 1999 to $28.0 billion in 2004, a 9.4 percent average
annual increase, and disability compensation, whose budget
authority grew from $18.7 billion in 1999 to $30.7 billion in
2004, a 10.4 percent average annual increase.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $31.7 billion in budget authority and $30.7
billion in outlays for 2005.
The Senate resolution assumes $30.3 billion in total
funding for VA medical programs. This reflects a Murkowski
amendment (SA 2846) to increase Veterans medical care by $1.2
billion. The Murkowski amendment included a corresponding
reduction to function 920 to result in no net effect on the
overall budget. This includes $28.3 billion in budget authority
and $2 billion in offsetting collections from the Medical Care
Collections Fund [MCCF]. This is an increase of 9.4 percent, or
$2.6 billion, over the 2004 enacted level. VA Medical Care
spending has grown by 100 percent since 1993 and 42 percent
since 2001.
The Senate resolution does not assume the President's
proposal to establish a new $250 enrollment fee for priority
level 7 and 8 veterans or to increase the insurance and
prescription drug co-payments for Priority 7 and 8 veterans
from $7 to $15.
Mandatory
The Senate resolution assumes a 1.3 percent cost of
living adjustment for compensation benefits that is due in 2005
under current law. After the adjustment, total mandatory
spending in this function is projected to be $39.8 billion in
2005, an increase of 23.6 percent or $7.6 billion over the 2004
enacted level. Mandatory spending includes funding for veterans
compensation, pensions, insurance funds and readjustment
programs.
The Senate resolution assumes the President's proposal to
restore the original interpretation of section 1110 of title 38
of the U.S. Code. This section prohibits veterans from
receiving disability compensation for alcohol or drug abuse
which arises secondarily from a service connected disability.
In February 2001, the U.S. Court of Appeals decided that
section 1110 did not preclude compensation for alcohol or drug
abuse arising secondarily from a service-connected disability.
If this legislation were enacted it would save $9 million in
fiscal year 2005 and $95 million for fiscal years 2005-2009
period.
House Amendment
Note: In the House amendment as passed, funding amounts
for certain homeland security activities were moved out of this
function into a separate category, Function 100--Homeland
Security. Accordingly, the House-passed totals in these
functions do not precisely correspond with those in the Senate-
passed resolution, and the figures in the House-passed and
Senate-passed measures cannot be compared at face value. The
customary correspondence was restored in the process of
developing the conference agreement.
The House amendment calls for $70.5 billion in budget
authority and $68.6 billion in outlays in fiscal year 2005. The
function totals are $346.0 billion in budget authority and
$341.7 billion in outlays over five years. Mandatory spending
is $39.8 billion in budget authority and $39.5 billion in
outlays in fiscal year 2005, and totals $190.9 billion in
budget authority and $190.4 billion in outlays over five years.
Discretionary spending is $30.7 billion in budget authority and
$29.1 billion in outlays in fiscal year 2005; and over five
years, it is $155.1 billion in budget authority and $151.4
billion in outlays.
Mandatory
There are no specific mandatory assumptions in this
function.
Discretionary
During markup, the Budget Committee adopted an amendment
offered by Representative Brown-Waite adding $200 million to
the Chairman's Mark in veterans benefits and services. As a
result, the amendment includes an increase in total veterans
budget authority of $1.2 billion in fiscal year 2005 over the
President's request with none of the fees in the President's
budget. Outyear levels are not binding and will be revisited in
subsequent years.
Conference Agreement
The conference agreement for this function reflects total
spending of $70.8 billion in budget authority and $68.9 billion
in outlays for fiscal year 2005. Mandatory spending for this
function is $39.8 billion in budget authority and $39.5 billion
in outlays in fiscal year 2005. Discretionary spending for this
function is $31.0 billion in budget authority and $29.4 billion
in outlays in fiscal year 2005. The conference agreement
includes $1.2 billion more than the President's request,
consistent with the funding need identified by Secretary of
Veterans Affairs Anthony J. Principi.
Function 750: Administration of Justice
Function Summary
Function 750 supports the majority of Federal justice and
law enforcement programs and activities. This includes funding
for the Department of Justice, a large portion of the
Department of Homeland Security [DHS], as well as the financial
law enforcement activities of the Department of the Treasury,
Federal courts and prisons, and criminal justice assistance to
State and local governments.
Function 750 budget authority rose from $28.1 billion in
1999 to $41.2 billion in 2004, an 8.0 percent average annual
growth rate. During the same time period, outlays rose from
$26.5 billion to $39.6 billion, an 8.3 percent average annual
growth rate. The largest component of this growth was for
Federal law enforcement activities, with budget authority
growing from $11.9 billion in 1999 to $19.0 billion in 2004, a
9.9 percent average annual increase.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $37.5 billion in budget authority and $37.0
billion in outlays for 2005, an increase of $0.4 billion in
budget authority and an increase of $1.5 billion in outlays
from the 2004 level. The Senate resolution includes the
following specific assumptions:
The Senate resolution assumes a total of $4.6 billion for
the Federal Bureau of Investigation [FBI], an increase of $0.5
billion or 12.8 percent over the 2004 level. Another $0.5
billion is assumed for the FBI in the defense function of the
federal budget. Overall, the budget for the FBI is $5.1
billion. The Senate resolution concurs with the President's
proposal to dramatically increase the agency's funding in order
to fulfill the FBI's primary mission of preventing further
terrorist attacks in America. A large portion of the funding
increases will go to improve the FBI's intelligence
capabilities, counterterrorism investigations, and combating
cybercrime.
The Senate resolution includes $1.7 billion for a
restructured account entitled Justice Assistance. The Senate
resolution concurs with the President's proposal to consolidate
many duplicative grant programs within the Department of
Justice in order to achieve better effectiveness. Programs from
the State and Local Law Enforcement Assistance account, the
Juvenile Justice account, and the Community Oriented Policing
Services [COPS] account are combined under Justice Assistance
in the Committee-reported resolution. Some highlights of this
new Justice Assistance account include a $509 million Justice
Assistance Grant Program, the $176 million DNA Initiative, the
Southwest Border Prosecution Initiative, and funding for
bulletproof vests.
For the Bureau of Alcohol, Tobacco, Firearms and
Explosives, the Senate resolution assumes a level of $868
million, which represents an increase of $41 million or 5
percent above the 2004 level.
The Senate resolution assumes $4.6 billion for the
salaries and expenses of the Bureau of Customs and Border
Protection, an increase of $207 million or 4.7 percent above
the 2004 level. The increase in funding will enhance border
patrol surveillance and technology, continue the Container
Security Initiative, and support the purchase of radiation
detection equipment.
The Senate resolution assumes $4.0 billion for the
salaries and expenses of the Federal Courts of Appeals,
District Courts, and other judicial services. This matches the
President's request for 2005 and represents an increase of $357
million or 9.7 percent above the 2004 level.
The Senate is concerned about efficiency and cost-
effectiveness of first responder spending and training.
Therefore, the Senate resolution encourages the use of homeland
security funds to examine and possibly expand upon the Federal
Law Enforcement Training Center's Distributed Learning Program
for the purpose of secure, encrypted, geographically dispersed
first responder e-learning.
The Senate resolution reflects a Hatch amendment (SA
2843) adding $600 million in 2005 for various law enforcement
grant programs.
Mandatory
The Senate resolution assumes the extension of two types
of Customs User Fees, yielding $784 million in 2005, $7.6
billion over 5 years, and $18.6 billion over 10 years.
The Senate resolution does not assume any funding for the
creation of a government-administered trust fund intended to
resolve the claims of victims for bodily injury caused by
asbestos exposure. Although the Senate recognizes the urgent
need for litigation reform designed to expedite justice for
legitimate victims of asbestos exposure and to halt the
corrosive effect that litigation abuse has on the economy, it
is concerned that the creation of a new uncapped government
entitlement, during a period requiring austere budget
discipline, would be imprudent and inconsistent with fiscal
responsibility. The proposed use of mandatory contributions
from defendant companies and insurers does not alleviate those
concerns if the private contributions are capped at a finite
level and the fund is not expected to meet the total liability
of anticipated asbestos claims. The Senate does not believe it
would be prudent to rely upon ``sunset'' provisions that would
be triggered upon fund insolvency, thus returning potentially
large numbers of unpaid claimants to the federal tort system.
Past experience with government administered trust funds
designed to mandate a ``no-fault'' solution for liability
claimants demonstrate that, even with specific legislative
language to the contrary, there is a low probability of an
actual return to the tort system. Political resistance to
implementing such a reversion will likely be insurmountable. In
essence, the Senate is concerned that under such a scenario
there is a possibility that a massive taxpayer bail-out could
occur if Congress is forced to step in and sustain the fund.
House Amendment
The amendment calls for $30.1 billion in budget authority
and $30.0 billion in outlays in fiscal year 2005. The function
totals are $140.4 billion in budget authority and $141.0
billion in outlays over five years. Mandatory spending is $5.0
billion in budget authority and $4.3 billion in outlays in
fiscal year 2005, and totals $13.2 billion in budget authority
and $13.1 billion in outlays over five years. Discretionary
spending is $25.2 billion in budget authority and $25.7 billion
in outlays in fiscal year 2005; and over five years, it is
$127.2 billion in budget authority and $127.9 billion in
outlays. Homeland security components formerly found in
Function 750 are recorded in Function 100: Homeland Security.
Mandatory
The assumptions accommodate H.R. 975, the Bankruptcy
Abuse Prevention and Consumer Protection Act of 2003, which
passed the House on 19 March 2003 and is awaiting action in the
Senate. The accommodation is needed to allow for a potential
conference agreement. The assumption is reflected in the
allocation to the Committee on the Judiciary, which is free to
determine its own policies within the allocation limits.
Discretionary
The Committee on Appropriations will determine how these
funds will be apportioned among the various discretionary
programs. Outyear levels are not binding and will be revisited
in subsequent years.
Conference Agreement
The conference agreement for this function reflects total
spending of $41.9 billion in budget authority and $41.8 billion
in outlays for fiscal year 2005. Mandatory spending for this
function is $5.1 billion in budget authority and $4.5 billion
in outlays in fiscal year 2005. Discretionary spending for this
function is $36.8 billion in budget authority and $37.3 billion
in outlays in fiscal year 2005.
Function 800: General Government
Function Summary
Function 800 consists of the activities of the
Legislative Branch; the Executive Office of the President;
general tax collection and fiscal operations of the Department
of Treasury (including the Internal Revenue Service); the
Office of Personnel Management; the property and personnel
costs of the General Services Administration; general purpose
fiscal assistance to States, localities, the District of
Columbia, and U.S. territories; and other general Government
activities.
Function 800 budget authority rose from $16.7 billion in
1999 to $23.9 billion in 2004, a 7.5 percent average annual
growth rate. During the same time period, outlays rose from
$15.3 billion to $24.7 billion, a 10.0 percent average annual
growth rate.
Senate Resolution
Discretionary
The Senate resolution assumes discretionary spending in
this function of $14.4 billion in budget authority and $15.0
billion in outlays for 2005. The Senate resolution includes the
following specific assumptions:
The Senate resolution assumes that $1.4 billion provided
for election reform programs in 2004 is not continued in the
budget. To date, appropriations for election reform have been
essentially at the level recommended by the authorizing bill,
totaling just over $3.0 billion. The disbursement of these
funds has been significantly delayed while awaiting the
formation of the Election Assistance Commission [EAC], which is
responsible for the oversight and disbursement of the federal
grants to the states. The EAC was formed earlier this year and
it is attempting to distribute these funds before the fall
elections. The Senate resolution does assume $40 million for
the Election Assistance Commission.
The Senate resolution reflects two amendments, a Dorgan
amendment (SA 2850) and a Hatch amendment (SA 2843), that
reduced the general government function by $1.2 billion in 2005
to pay for other discretionary spending.
Mandatory
Under current law, there is a significant drop in
mandatory spending from 2004 to 2005. This decrease is due to
$5.0 billion in state assistance provided as one-time funds for
2004 by the Jobs and Growth Tax Relief and Reconciliation Act
of 2003.
The Senate resolution assumes an adjustment to the
current fee structure for the National Indian Gaming
Commission, which regulates and monitors gaming operations on
Indian lands. Since 1998, the Commission has been prevented
from collecting additional annual fees from gaming operations
to cover the costs of its oversight responsibilities. The
assumed restructuring of fees would allow the Commission to
adjust its activities to the growth in the Indian gaming
industry.
House Amendment
The amendment calls for $17.2 billion in budget authority
and $17.9 billion in outlays in fiscal year 2005. The function
totals are $86.8 billion in budget authority and $86.8 billion
in outlays over five years. Mandatory spending is $1.8 billion
in budget authority and $1.7 billion in outlays in fiscal year
2005, and totals $8.9 billion in budget authority and $8.9
billion in outlays over five years. Discretionary spending is
$15.4 billion in budget authority and $16.2 billion in outlays
in fiscal year 2005; and over five years, it is $77.9 billion
in budget authority and $77.9 billion in outlays. Homeland
security components formerly found in Function 800--including
the Federal Protective Service--are recorded in Function 100:
Homeland Security, and are consistent with the President's
request.
Mandatory
Mandatory totals allow for inclusion of H.R. 2751, the
GAO Human Capital Reform Act of 2003, as passed by the House
last year. The accommodation is needed to allow for a potential
conference agreement. The amendment assumes growth in mandatory
spending to accommodate projected inflation, and other normal
factors. The assumptions appear in the allocations of the
respective committees of jurisdiction, which are free to
determine their own policies within the allocation limits.
Discretionary
The amendment can accommodate funding for the Payment in
Lieu of Taxes [PILT] program at the fully authorized level.
Specific programmatic decisions will be made by the Committee
on Appropriations. Outyear levels are not binding and will be
revisited in subsequent years.
Conference Agreement
The conference agreement for this function reflects total
spending of $17.4 billion in budget authority and $18.0 billion
in outlays for fiscal year 2005. Mandatory spending for this
function is $1.8 billion in budget authority and $1.7 billion
in outlays in fiscal year 2005. Discretionary spending for this
function is $15.6 billion in budget authority and $16.2 billion
in outlays in fiscal year 2005.
Function 900: Net Interest
Function Summary
Function 900 includes net interest, which is the interest
paid for the Federal Government's borrowing less the interest
received by the Federal Government from trust fund investments
and loans to the public. It is a mandatory payment, with no
discretionary components.
Net interest spending declined from $229.8 billion in
1999 to $154.8 billion in 2004, an average annual reduction of
7.6 percent. This decline was caused by lower interest paid to
finance the debt, as well as higher interest received by the
continued build-up of off-budget trust funds.
Senate Resolution
The Senate resolution sets forth $179.9 billion in budget
authority and outlays for fiscal year 2005 and $1.220 trillion
in budget authority and outlays over 5 years. On-budget net
interest is $270.1 billion in budget authority and outlays in
2005 and $1,766 trillion in budget authority and outlays over 5
years. Off-budget interest collections are $90.2 billion in
budget authority and outlays in 2005 and $545.5 billion in
budget authority and outlays over 5 years.
House Amendment
The House amendment calls for $180.5 billion in budget
authority and outlays in fiscal year 2005. The function totals
are $1.235 trillion in budget authority and outlays over 5
years. On-budget spending is $270.7 billion in budget authority
and outlays in fiscal year 2005, and totals $1.780 trillion in
budget authority and outlays over 5 years. Off-budget interest
collections are $90.2 billion in budget authority and outlays
in fiscal year 2005; and over 5 years, $545.5 billion in budget
authority and outlays. There are no specific mandatory
assumptions in this function.
Conference Agreement
For on-budget spending, the conference agreement for this
function reflects $270.4 billion in budget authority and
outlays for fiscal year 2005. Total on- and off-budget spending
is $180.3 billion in budget authority and outlays for fiscal
year 2005.
Function 920: Allowances
Function Summary
Function 920, Allowances, is used for planning purposes
to address the budgetary effects of proposals or assumptions
that cross various other budget functions. Once such changes
are enacted, the budgetary effects are distributed to the
appropriate budget functions.
Senate Resolution
Discretionary
This function includes -$11.2 billion in discretionary
budget authority and -$4.3 billion in outlays for 2005. This is
the result of amendments adopted during consideration of the
resolution on the Senate floor that were ``offset'' in function
920.
Mandatory
This function includes -$256 million in mandatory budget
authority and -$235 million in outlays for 2005. This reflects
the Dole child nutrition amendment that was adopted during
Senate consideration of the committee-reported resolution and
the total combined impact of the Committee-adopted amendment by
Senator Stabenow to allow drug reimportation, rather than
reflecting the effects across the various federal health
programs (e.g. Medicaid, Medicare, FEHBP, military health) as
they would occur in their respective functions.
House Amendment
The amendment calls for $50.0 billion in budget authority
and $24.9 billion in outlays in fiscal year 2005. This provides
for an expected supplemental spending bill to address
operations in Afghanistan and Iraq. The function totals are
$50.0 billion in budget authority and $49.8 billion in outlays
over 5 years. Discretionary spending is $50.0 billion in budget
authority and $24.9 billion in outlays in fiscal year 2005; and
over 5 years, it is $50.0 billion in budget authority and $49.8
billion in outlays.
Mandatory
There is no mandatory spending in this function.
Conference Agreement
The conference agreement for this function reflects total
spending of -$7.2 billion in budget authority and -$14.5
billion in outlays for fiscal year 2005. There is no mandatory
spending in this function. These amounts will be restored via
cap adjustments when certain conditions are met.
Function 950: Undistributed Offsetting Receipts
Function Summary
Function 950 consists of receipts to the Treasury.
Receipts recorded in this function are either intrabudgetary (a
payment from one Federal agency to another, such as agency
payments to the retirement trust funds) or proprietary (a
payment from the public for some kind of business transaction
with the Government). The main types of receipts recorded in
this function are: the payments Federal employees and agencies
make to employee retirement trust funds; and payments by those
who bid for the right to buy or use public property or
resources, such as licenses to use the electromagnetic spectrum
or the right to explore and produce oil and gas on the Outer
Continental Shelf. By convention, these receipts are treated as
negative spending, with budget authority and outlays matching
exactly for each account. There is no discretionary spending in
this function.
Senate Resolution
Mandatory
The Senate resolution assumes the President's proposal to
extend the authority of the Federal Communications Commission
to auction spectrum, which would otherwise expire at the end of
2007.
House Amendment
The House amendment calls for -$63.7 billion in budget
authority and -$63.8 billion in outlays in fiscal year 2005.
(The minus signs indicate receipts into the Treasury.) The
function totals are -$360.4 billion in budget authority and
-$361.4 billion in outlays over 5 years.
Mandatory
The assumptions accommodate H.R. 1320, which passed the
House on 11 June 2003, and is awaiting action in the Senate.
Although H.R. 1320 has budgetary effect in Function 950
(Undistributed Offsetting Receipts) because it is a receipt
against spending, it is within the scope of the Federal
Communications Commission. The accommodation is needed to allow
for a potential conference agreement.
Conference Agreement
For on-budget offsetting receipts, the conference
agreement for this function reflects -$52.5 billion in budget
authority and outlays for fiscal year 2005.
The combined on- and off-budget offsetting receipts, the
conference agreement for this function reflects -$63.9 billion
in budget authority and outlays for fiscal year 2005.
RECONCILIATION INSTRUCTIONS
Under section 310(a) of the Congressional Budget Act, the
budget resolution may include directives to the committees of
jurisdiction to make revisions in law necessary to accomplish a
specified change in spending or revenues. If the resolution
includes a reconciliation directive to only one committee of
the House or Senate, then that committee is required to
directly report to its House the legislative language that
would implement the spending or revenue changes provided for in
the resolution. If the resolution includes an instruction with
directives to more than one committee, the reporting committees
submit their recommendations to the Budget Committee, which
then packages them together and votes to report one bill,
without substantive change, to its respective House. Under
either scenario, the committees have discretion as to how they
meet the targets, as long as the targets are met within the
respective committees' jurisdictions. Any bill considered
pursuant to a reconciliation instruction is subject to special
procedures set forth in section 310 and, in the Senate, section
313 of the Budget Act.
TITLE II: RECONCILIATION
Senate Resolution
Section 201: Reconciliation in the Senate
Section 201 includes two reconciliation directives to the
Finance Committee (with a reporting date not later than
September 30, 2004). The Finance Committee is instructed to
report legislation to reduce revenues by not more than $12.3
billion in 2005 and $80.6 billion for the period 2005-2009 and
to increase outlays by not more than $2 billion for the period
2005-2009. The Finance Committee is free to satisfy this
instruction with legislation of its choosing, but the Senate
resolution assumes the 2005-2009 revenue effects of extending
the $1,000 child tax credit, extending marriage penalty relief,
extending the expanded 10 percent individual income tax
bracket, and accelerating the repeal of the death tax to 2009.
The outlay increase instruction was added with the adoption of
an amendment (SA 2837) which the Senate accepted by voice vote.
The second instruction directs the Finance Committee to
report legislation to increase the statutory debt limit by
$664.028 billion. The current statutory debt ceiling is $7.384
trillion; under the Senate resolution, the debt subject to
limit is projected to be $8.051 trillion at the end of fiscal
year 2005.
By a vote of 53-43, the Senate agreed to the Baucus
amendment (SA 2751), which struck the reconciliation
instruction to the Finance Committee to reduce outlays by $2.9
billion in 2005 and by $3.4 billion over the period 2005-2009.
House Amendment
Section 201: Reconciliation in the House
The House amendment provides instructions for two
reconciliation bills. The first instructs five authorizing
committees to report changes in current law to achieve
specified level of deficit reduction on the assumption that the
savings will come from the elimination of waste, fraud and
abuse in specific programs in their jurisdictions. The
committees may make whatever changes in the law they deem
appropriate to achieve the specified amount of savings for
fiscal year 2005 and for the period of fiscal years 2005
through 2009. The Agriculture Committee is instructed to save
$110 million in 2005 and $371 million for fiscal years 2005-
2009; the Education and Workforce Committee is instructed to
save $5 million in fiscal year 2005 and $43 million for fiscal
years 2005-2009, under the assumption such savings will be
achieved through changes in the Federal Employees Compensation
Act; the Energy and Commerce Committee is instructed to save
$410 million in fiscal year 2005 and $2.185 billion for fiscal
years 2005-2009; the Government Reform Committee is instructed
to save $170 million in fiscal year 2005 and $2.365 billion for
fiscal years 2005-2009; and, the Committee on Ways and Means is
instructed to reduce the deficit by $1.126 billion in fiscal
year 2005 and by $8.269 billion for fiscal years 2005-2009. The
first reconciliation bill has a reporting deadline of July 15,
2004.
The second reconciliation bill directs the Committee on
Ways and Means to report a measure that would reduce taxes by
$13.182 billion in 2005 and by $137.580 billion for fiscal
years 2005-2009. These amounts are sufficient to accommodate an
extension of certain expiring tax provisions from the 2001
Economic Growth and Tax Relief Reconciliation and the 2003 Jobs
and Growth Tax Relief Reconciliation Acts.
While the resolution only reconciles changes in revenue
for the second reconciliation bill, it includes authority for
the Budget Committee chairman to adjust the reconciliation
instructions, the Committee on Ways and Means' allocations and
other appropriate levels to accommodate outlays (largely
related to certain refundable tax provisions). The authority
may only be exercised for a reconciliation bill that does not
cost more in total outlay increases and revenue reductions than
the underlying reconciliation instruction. The second
reconciliation bill has a reporting deadline of October 1,
2004.
Section 202: Submission of report on defense savings
This section requires the House Armed Services Committee
to submit to the Budget Committee a set of findings that
identify $2 billion dollars in savings from activities that are
determined to be of low priority or wasteful or unnecessary to
national defense. These savings then can be used to accommodate
other priorities such as force protection, munitions and
surveillance capabilities. The report must be submitted by May
15, 2004. Its submission would not be considered under
reconciliation procedures and it is assumed the savings would
be discretionary. The Budget Committee chairman is then
required to submit the report for inclusion in the
Congressional Record by no later than May 21, 2004.
Conference Agreement
Section 201: Reconciliation in the Senate
The conference agreement contains two instructions for
reconciliation in the Senate. Section 201(a) instructs the
Finance Committee to report a reconciliation bill (not later
than September 30, 2004) that reduces revenues by not more than
$22.9 billion and that increases outlays by not more than $4.6
billion. This is an amount sufficient to accommodate a
permanent extension of the $1,000 child credit, the marriage
penalty relief, and the 10 percent marginal tax rate bracket.
The outlay instruction is included to allow for a fungibility
adjustment between outlays and revenues, so that the Finance
Committee may include legislation affecting refundable credits
in the legislation they report.
Section 201(b) instructs the Finance Committee to report
a reconciliation bill (not later than September 10, 2004) that
increases the statutory debt limit by $689.946 billion.
Section 211: Reconciliation in the House
The conference agreement contains one instruction for
reconciliation in the House. Section 211(a) instructs the House
Committee on Ways and Means to report a measure by September
30, 2004 that will reduce taxes by $22.9 billion and increase
outlays by $4.6 billion.
Section 211(b) also authorizes the chairman of the House
Committee on the Budget to make deficit-neutral adjustments in
the allocations and aggregates for a reconciliation bill that
complies with the so-called 20 percent fungibility rule under
section 310 of the Congressional Budget Act. This authority is
consistent with section 310(c)(2) of the Budget Act, which
allows the chairman of the Senate Committee on the Budget to
conform the budget resolution to a reconciliation bill that
satisfies the 20 percent rule under section 310(c) in the
Senate.
RESERVE FUNDS AND ADJUSTMENTS
A budget resolution does not become law and cannot amend
law. However, pursuant to section 301(b)(4) of the
Congressional Budget Act, some provisions in the resolution may
affect the consideration of legislation in order to implement
and enforce the policy assumptions underlying such resolution.
The conference agreement contains a number of provisions which
may affect the consideration of legislation implementing the
policies assumed in this resolution.
TITLE III: RESERVE FUNDS AND ADJUSTMENTS
In general, a reserve fund (or discretionary adjustment)
permits the chairman of the Committee on the Budget to increase
the section 302 allocation and other appropriate levels set out
in this resolution (including, in the Senate, the discretionary
spending limits) once certain conditions have been met. The
authority to make these adjustments is solely within the
discretion of the chairman and may be made when the committee
of jurisdiction reports a measure that satisfies all the
conditions set in the reserve funds.
Senate Resolution
During Senate consideration of the Committee-reported
resolution, six additional deficit-neutral reserve funds were
adopted in the Senate by voice vote. All envision the committee
of jurisdiction reporting a specific measure (or in the case of
three of the reserve funds, the Committee on Appropriations
reporting an appropriations measure) for which the chairman of
the Committee on the Budget may then make appropriate budgetary
adjustments. These six are discussed below:
Subtitle A: Reserve Funds
Section 301: Reserve fund for health insurance for the
uninsured
The Senate resolution provides a deficit-neutral reserve
fund for the period of fiscal years 2005 through 2009 for
legislation that addresses access to health care services and
health insurance for the uninsured. The chairman of the
Committee on the Budget may adjust the applicable allocations
and aggregates to accommodate this legislation so long as the
total cost of the legislation does not increase the deficit for
fiscal year 2005 or for the sum of fiscal year 2005 through
2009. The adjustment may be made only if the Committee on
Finance or the Committee on Health, Education, Labor and
Pensions reports a bill that provides health insurance for the
uninsured (including a measure providing for tax deductions for
the purchase of health insurance or other measures) or that
increases access to health insurance through lowering costs;
provided that any such measure does not increase the costs of
current health insurance coverage.
An amendment (SA 2699) offered by Senator Kennedy was
adopted by voice vote that expands the purposes of the reserve
fund to include ``legislation to reallocate and maintain
expiring SCHIP funds rather than allowing such funds to revert
to the Treasury.''
Section 302: Reserve fund for higher education
The Senate resolution provides additional resources to
the Committee on Health, Education, Labor and Pensions for
reauthorization of the Higher Education Act. The mechanism will
make available an additional $1 billion for fiscal year 2005
and $5 billion for fiscal years 2005 through 2009 for
reauthorization of the Higher Education Act of 1965. This
section also makes available an additional $3.7 billion for
fiscal year 2005 in budget authority only in order to permit
the authorizing committee to rectify an accumulated short fall
in the federal Pell Grant account.
Section 303: Reserve fund for energy legislation
The Senate resolution provides a mechanism to make
additional resources available for a measure setting out a
national energy policy (including a bill, joint resolution,
amendment, motion, or conference report), that is predominately
within the jurisdiction of the Committee on Energy and Natural
Resources. Such measure may also include revenue reductions.
Unlike most reserve funds, this one is not dependent upon the
committee of jurisdiction reporting new legislation. Section
303 is intended to facilitate the consideration of S. 2095, the
Energy Policy Act, or a similar measure in any number of
different procedural situations.
Regardless of the procedural posture in which such a
measure comes before the Senate, the chairman of the Committee
on the Budget may make adjustments to committee allocations and
relevant budgetary aggregates provided that the cost of the
measure does not exceed $261 million in new budget authority
and $221 million in outlays for fiscal year 2005 and $1.5
billion in new budget authority and $1.5 billion in outlays for
fiscal year 2005 through 2009 and the revenue reductions do not
exceed $1.8 billion for fiscal year 2005 and $15.1 billion for
fiscal year 2005 through 2009. Note that these revenue
reductions are assumed in the Senate resolution and thus
section 303 does not provide any authority for changing the
revenue aggregate. Rather, it makes not exceeding the maximum
revenue reduction a condition of making the spending-related
adjustments.
Section 304: Reserve fund for Guard and Reserve health care
An amendment (SA 2731) offered by Senators Graham (of
South Carolina) and Bunning was adopted by voice vote that
would make additional resources (not to exceed $5.6 billion for
the period fiscal year 2005 through 2009) available to either
the Committee on Armed Services or the Committee on
Appropriations to expand access to health care for members of
the reserve component.
Section 305: Reserve fund for Montgomery GI bill benefits
An amendment (SA 2731) offered by Senators Graham (of
South Carolina) and Bunning was adopted by voice vote that
would make additional resources (not to exceed $1.2 billion for
the period fiscal year 2005 through 2009) available to either
the Committee on Armed Services or the Committee on
Appropriations to increase benefit levels under the Montgomery
GI bill for members of the Selected Reserves.
Section 306: Reserve for funding of Hope Credit
An amendment (SA 2820) offered by Senator Mikulski was
adopted by voice vote that would make additional resources
available to the Committee on Finance to increase the Hope
Credit to $4,000, makes the Credit available for 4 years, and
make the Credit refundable.
Section 307: Reserve fund for expansion of pediatric
vaccine distribution program
An amendment (SA 2833) offered by Senator Bingaman was
adopted by voice vote that would make additional resources
available to the Committee on Finance to expand the pediatric
vaccine distribution program established under section 1928 of
the Social Security Act to include coverage for children
administered a vaccine at a public health clinic or Indian
clinic and repels the price cap for pre-1993 vaccines.
Section 308: Reserve fund for addressing minority health
disparities
An amendment (SA 2780) offered by Senator Clinton was
adopted by voice vote that would make additional resources (not
to exceed $400 million for fiscal year 2005) available to the
Committee on Appropriations for legislation that addresses
minority health disparities through activities including those
at the HHS Office of Minority Health, the Office of Civil
Rights, the National Center on Minority Health and Health
Disparities, the Minority HIV/AIDS initiative, health
professions training, and through the Racial and Ethnic
Approaches to Community Health at the Centers for Disease
Control. This amendment would more properly be classified as an
adjustment to the discretionary spending limits rather than a
reserve fund for additional mandatory spending.
Section 309: Reserve for Postal Service reform
An amendment (SA 2852) offered by Senator Collins was
adopted by voice vote that would make additional resources
available to the Committee on Governmental Affairs for
legislation that reforms the United States Postal Service to
improve its economic viability.
Subtitle B: Adjustments With Respect to Discretionary Spending
Section 311: Adjustment for surface transportation
The Senate resolution provides a mechanism (reinforcing
the intent of a comparable mechanism in the 2004 budget
resolution) to make additional contract authority and outlay
allocations available to the relevant committees for highway
and transit programs for the reauthorization of and
appropriation for surface transportation programs, provided
that the reauthorization (by virtue of a title reported by the
Committee on Finance) makes available new net resources for the
highway trust fund that offset the resulting outlays--without
increasing the deficit.
Section 312: Adjustment for supplemental appropriations for
activities in Afghanistan and Iraq
The Senate resolution provides a mechanism to make
available to the Committee on Appropriations additional
resources for supplemental appropriations for military
activities in Iraq and Afghanistan. This mechanism requires
that the President transmit a budget request for such funds and
limits the adjustment to $30 billion in new budget authority
for fiscal year 2005 or the President's request--whichever is
lower. This mechanism is intended to accommodate incremental
expenditures associated with ongoing military operations in
Iraq and Afghanistan.
Section 313: Adjustment for emergency fire suppression
activities
The Senate resolution provides a mechanism to make
available up to $500 million per year in additional resources
to the Committee on Appropriations for supplemental
appropriations for fire suppression activities for fiscal years
2004 through 2006. Such additional resources will only be made
available if the regular appropriation for that year has been
enacted and is not less than the 10-year average for those
accounts and the severity of the fire season necessitates
providing additional funding in a timely manner.
The resolution permits the chairman of the Committee on
the Budget to adjust the discretionary spending limits, the
committee allocation and other appropriate budgetary aggregates
by not more than $400 million each year for fiscal years 2005
and 2006 for the Forest Service and not more than $100 million
each year for fiscal years 2005 and 2006 for the Department of
the Interior. With respect to fiscal year 2004, the 10-year
average has already been appropriated in the regular 2004
appropriations bills. If additional resources are required for
fire suppression in fiscal year 2004, rather than making an
adjustment to the fiscal year 2004 levels, the chairman has the
authority to hold harmless a measure that provides up to $400
million for the Forest Service and up to $100 million for the
Department of the Interior for fire suppression activities.
These funds can be made available on any appropriations
bill, amendment, joint resolution or conference report, and are
only available for fire suppression. The Senate resolution
anticipates that the Forest Service and Department of Interior
will work with Congress to develop cost containment measures
for fire suppression operation and encourages the Forest
Service and Department of the Interior to report to Congress
how the funds above the 10-year average were used.
Section 314: Reserve fund for eliminating survivor benefit
plan--Social Security offset
During Senate consideration of the Committee-reported
resolution, an amendment (SA 2775) offered by Senator Landrieu
was adopted by voice vote that would make additional resources
(not to exceed $2.757 billion for the period of fiscal years
2005 through 2009) available to either the Committee on Armed
Service or the Committee on Appropriations to provide an
increase to the minimum Survivor Benefit Plan basic annuity for
surviving spouses age 62 or older. The amendment does not
require that the increased spending be deficit-neutral.
Section 514: Reserve fund for homeland security grant
program, assistance to firefighter grants and port
security grants
During Senate consideration of the Committee-reported
resolution, an amendment (SA 2817) offered by Senators Levin
and Collins was adopted by a vote of 52 to 43 that would make
additional resources (not to exceed $1.545 billion for fiscal
year 2005) for programs at the Department of Homeland Security.
A sense of the Senate provision that was also part of this
amendment stated that this increase in funding is to come from
the cancellation of planned future deliveries of oil to the
Strategic Petroleum Reserve.
House Amendment
Subtitle A: Reserve Funds for Legislation Assumed in the Budget
Aggregates
Section 301: Deficit-neutral reserve fund for health
insurance for the uninsured
This section of the House Amendment allows adjustments to
be made in the allocations and aggregates for certain deficit-
neutral legislation. If a committee reports legislation that
provides health insurance for the uninsured, the chairman of
the Budget Committee may adjust the levels in the allocations
and aggregates to the extent such legislation is deficit-
neutral in fiscal year 2005, and the period of fiscal years
2005 through 2009.
Section 302: Deficit-neutral reserve fund for the Family
Opportunity Act
This section of the House Amendment allows adjustments to
be made in the allocations and aggregates for certain deficit-
neutral legislation. If the Energy and Commerce Committee
reports legislation that provides Medicaid coverage for
children with special needs (the Family Opportunity Act), the
chairman of the Budget Committee may adjust the levels in the
allocations and aggregates to the extent such legislation is
deficit-neutral in fiscal year 2005, and the period of fiscal
years 2005 through 2009. This section allows these initiatives
to come to the floor with offsets, as long as that initiative
is deficit-neutral in the first year and over the 5-year
period.
Section 303: Deficit-neutral reserve fund for the Military
Survivors Benefit Plan
This section of the House Amendment establishes a
deficit-neutral reserve fund should legislation be reported, an
amendment offered, or conference report submitted which
increases military survivor's benefits. The purpose of this
section is to encourage an examination of existing mandatory
spending accounts so that appropriate reductions may be used to
offset a potential survivor benefit expansion.
Section 304: Reserve fund for pending legislation
This section of the House Amendment allows an adjustment
to be made for any bill, including a bill that provides for the
safe importation of FDA-approved prescription drugs or places
limits on medical malpractice litigation, that has been adopted
by the House in the first session of the 108th Congress and
enacted into law. The adjustment may be made by the chairman of
the Committee on the Budget to the allocations and aggregates
to reflect any resulting savings from any such measure. The
effect of any adjustment would be to lock in the savings for
deficit reduction. The chairman of the Budget Committee would
consult with the committees of jurisdiction before making any
adjustments pursuant to this section.
Subtitle B: Contingency Procedure
Section 311: Contingency procedure for surface
transportation
This section of the House Amendment permits the chairman
of the Committee on the Budget to adjust the appropriate levels
in the budget resolution to accommodate legislation increasing
spending for highway and transit programs above the levels in
the budget resolution to the extent there are offsets for the
additional spending. This contingency is essentially identical
to that included in the conference report on the budget
resolution for fiscal year 2004.
Subsection (a) permits the chairman of the Committee on
the Budget to increase the Committee on Transportation and
Infrastructure's allocation for legislation that increases
mandatory contract authority for highway and transit programs
financed out of the Highway Trust Fund. In order to make the
adjustment, the additional spending must be offset by a
reduction in mandatory outlays out of the Fund or receipts
appropriated to the Fund.
Since any additional contract authority provided pursuant
to subsection (b) would be made available for obligation
through a change in obligation limitations, subsection (c)
permits the chairman of the Committee on the Budget to increase
the appropriate committee's allocation of discretionary outlays
to the extent legislation increases the obligation limits for
the highway and transit programs above the levels assumed in
the budget resolution. In order to make the adjustment,
legislation must first be enacted in compliance with subsection
(a).
Conference Agreement
Subtitle A: Reserve Funds
In general, the reserve funds set out in subtitle A of
title III of the Conference Report permit the appropriate
chairman of the Committee on the Budget to adjust committee
allocations for the named authorizing committees, the spending
and revenue aggregates and functional levels in the budget
resolution if legislation is considered that satisfies the
conditions set out in each particular reserve fund. Adjustments
may only be made for reported bills, amendments thereto
(including motions to recommit with amendment) and conference
reports thereon.
Note that, in the Senate, this language is not intended
to permit revisions or adjustments to the pay-as-you-go
scorecard. In both the House and Senate, to the extent a
reserve fund for an authorizing committee is required to be
deficit-neutral and it is offset through a reduction in
spending, such reduction within the committee's jurisdiction to
achieve deficit neutrality must be in mandatory outlays. These
``reserve funds'' are not intended to accommodate floor
amendments offered to unrelated measures. All (except for
section 307) are required to be deficit-neutral in order for
any adjustments to be made.
Section 301: Deficit-neutral reserve fund for health
insurance for the uninsured
The conference agreement retains both the Senate (section
301(a)) and House (section 301(b)) reserve funds for
legislation relating to health insurance for the uninsured.
There are modest differences between the House and Senate with
respect to the policies required for any adjustments. Both
reserve funds are deficit-neutral.
Section 302: Deficit-neutral reserve fund for higher
education
The conference agreement includes a reserve fund for both
the Committee on Health, Education, Labor and Pensions in the
Senate and the Committee on Education and the Workforce in the
House for legislation reauthorizing the Higher Education Act.
Similar language was contained in section 302 of the Senate
resolution.
Section 303: Deficit-neutral reserve fund for Montgomery GI
benefits
The conference agreement includes a deficit-neutral
reserve fund for the committees of jurisdiction for legislation
that increases benefits under the Montgomery GI bill for
members of the Selected Reserves. Substantially similar
language was contained in section 305 of the Senate resolution.
Section 304: Deficit-neutral reserve fund for Postal
Service reform
The conference agreement includes a deficit-neutral
reserve fund for the Senate Governmental Affairs Committee and
the House Committee on Government Reform for legislation that
reforms the U.S. Postal Service. Substantially similar language
was contained in section 309 of the Senate resolution.
Section 305: Deficit-neutral reserve fund for the Family
Opportunity Act
The conference agreement includes a deficit-neutral
reserve fund for the Senate Finance Committee and the House
Energy and Commerce Committee for legislation that provides
Medicaid coverage for children with special needs.
Substantially similar language was contained in section 302 of
the House amendment.
Section 306: Deficit-neutral reserve fund for eliminating
survivor benefit plan--Social Security offset
The conference agreement includes a deficit-neutral
reserve fund for both the Senate and the House Armed Services
Committees for legislation that increases the minimum Survivor
Benefit Plan basis annuity for surviving spouses age 62 and
older. Substantially similar language was contained in section
314 of the Senate resolution.
Section 307: Reserve fund for pending legislation
The conference agreement includes a reserve fund for
certain House-passed legislation, with modifications. It
permits the House Budget Committee chairman to ensure that the
savings resulting from the enactment of certain measures would
go to deficit reduction. The reserve fund allows the chairman
to make adjustments in the budget resolution aggregates and
allocations upon the enactment of legislation providing for the
safe importation of FDA-approved prescription drugs and
legislation imposing limits on medical malpractice litigation.
Subtitle B: Adjustments With Respect to Discretionary Spending
In general, the adjustments set out in subtitle B of
title III of the Conference Report permit the appropriate
chairman of the Committee on the Budget to adjust committee
allocations for the Committees on Appropriations and the
spending aggregates and functional levels in the budget
resolution if the particular requirements of each section are
satisfied. In the Senate, this includes the discretionary
spending limits set out in section 404. Note that no adjustment
made under this subtitle is intended to permit resources or
adjustments to the pay-go-you-go scorecard for the Senate's
paygo point of order.
Section 311: Adjustment for surface transportation
Section 311 of the conference agreement is similar to
section 311 of the House amendment and section 311 of the
Senate resolution. However, the chairmen of the Budget
Committees will not make any adjustment for fiscal year 2004,
which is not revised in this conference agreement.
Section 312: Adjustment for wildland fire suppression
The conference agreement retains the language from
section 313 of the Senate resolution, extends it to the House,
and makes a number of minor modifications. Subsection (a)
states that the intent of this section is to accommodate
additional appropriations for wildland fire suppression if such
activities are funded at the 10-year average, there are
insufficient funds available in the wildland fire suppression
account, and the fire season is of sufficient severity to merit
additional appropriations.
Subsection (b)(1) clarifies that CBO will calculate the
ten-year average of obligations for wildland fire suppression,
defined as the ``base amount'', in consultation with the
Committees on the Budget and on Appropriations.
Under subsection (b)(2) the chairmen of the Committees on
the Budget of the House and the Senate would accommodate
additional spending by the Committees on Appropriations for any
appropriation for wildland fire suppression above the base
amount by increasing the Committees' allocation and other
appropriate aggregates for fiscal year 2005.
Under subsection (b)(3) there is a special rule for
fiscal year 2004 that allows the chairman of the Committee on
the Budget of the House to accommodate additional spending by
the Committee on Appropriations for additional appropriations
for wildland fire suppression by increasing the Committee's
allocation and other appropriate aggregates, but not to exceed
$500 million. In the Senate, for fiscal year 2004, the chairman
of the Committee on the Budget may hold the Committee on
Appropriations harmless (by not scoring) for any additional
appropriations for wildland fire suppression, only to the
extent such amounts do not exceed $500 million.
Section 313: Mechanism for adjusting appropriate
discretionary levels
Subsection (a) establishes a mechanism to increase the
discretionary levels from the discretionary limits that are
binding in the Senate (by virtue of section 504 of the fiscal
year 2004 budget resolution) to the levels envisioned by this
conference agreement. It is similar to the mechanism set out in
section 203 of the fiscal year 2002 budget resolution (H. Con.
Res. 83, 107th Cong.).
Subsection (a) provides the chairmen of the Committees on
the Budget the authority to increase the section 302(a)
allocation to the Committees on Appropriations (as well as the
discretionary spending limits set out in section 404 and other
levels in this conference agreement) when the first regular
appropriations bill for fiscal year 2005 is reported in its
respective House. The conference agreement will provide an
additional $4.630 billion in new budget authority and $14.240
billion in outlays to the Committee on Appropriations. The
functional levels in this conference agreement, including a
necessary adjustment in function 920 envision an ultimate level
of discretionary spending of $821.419 billion in new budget
authority and $905.328 billion in outlays for fiscal year 2005.
Subsection (b) establishes a procedure to adjust the
allocation to the Committees on Appropriations by the amount of
the advance appropriation for fiscal year 2005 for Project
Bioshield (already enacted in the fiscal year 2004 bill making
appropriations for the Department of Homeland Security). It
would provide $2.528 billion in budget authority and $0.276
billion in outlays. This adjustment is necessary to achieve
comparability between the President's budget request and this
conference agreement with respect to the budgetary treatment of
Project Bioshield. This adjustment will be made at the same
time as the adjustment made pursuant to subsection (a).
ITEMS DROPPED FROM THE SENATE RESOLUTION
The following provisions from the Senate resolution were
not retained in any form in the conference agreement:
Section 303--Reserve Fund for Energy Legislation
Section 304--Reserve Fund for Guard and Reserve Health Care
Section 306--Reserve Fund for Funding of Hope Credit
Section 307--Reserve Fund for Expansion of Pediatric Vaccine
Distribution Program
Section 308--Reserve Fund for Addressing Minority Health
Disparities
Section 514--Reserve Fund for Homeland Security Grants
BUDGET ENFORCEMENT
Under section 301 of the Budget Act, the budget
resolution may include special procedures to enforce the
spending and revenue levels contained in the resolution and the
allocations found in the accompanying joint statement of
managers.
TITLE IV: BUDGET ENFORCEMENT
Senate Resolution
Section 401: Restriction on advance appropriations in the
Senate
The Senate resolution includes language limiting the use
of advance appropriations. This restriction was first included
in the fiscal year 2001 budget resolution and was included and
revised in the fiscal year 2002 and fiscal year 2004
resolutions as well. The Senate resolution continues to
restrict advance appropriations to an annual limit of $23.158
billion with respect to both the fiscal years 2005 and 2006
appropriations bills and to those programs that are listed in
the statement of managers accompanying the conference report on
the budget resolution. The resolution also continues the
exception for advances with respect to the Corporation for
Public Broadcasting.
The list of permissible advances in the respective
appropriations bill is as follows:
Accounts Identified for Advance Appropriations
Interior: Elk Hills
Labor, HHS:
Corporation for Public Broadcasting
Employment and Training Administration
Education for the Disadvantaged
School Improvement
Children and Family Services (Head Start)
Special Education
Vocational and Adult Education
Transportation, Treasury: Payment to Postal Service
Veterans, HUD: Section 8 Renewals
Section 402: Emergency legislation
In general, the Senate's emergency rule addresses two
issues with respect to emergency spending: the ability to
designate spending as an emergency and the restatement of the
Senate point of order with respect to the use of that
designation.
Section 402 of the Senate resolution is virtually
identical to section 502(c) of the 2004 resolution, which sets
out the Senate's rule with respect to emergency legislation.
Subsection (a) states the general purpose for the rule, and
subsection (b) sets out the rule as it is applied in the House
of Representatives and thus is appropriately not addressed in
the Senate-passed 2005 resolution. The only change to the
current Senate rule (set out in section 502(c) of the 2004
resolution) is of a technical nature and makes clear that the
adjustment authority provided in section 402 of the 2005
resolution is applicable to all future budget resolutions as
well. The following is a review of the history of this
provision.
The authority to designate spending as an ``emergency''
existed as a part of the statutory discretionary spending
limits and the pay-as-you-go rules set out in sections 251 and
252 of the Balanced Budget and Emergency Deficit Control Act of
1985. The purpose of the designation was to create a ``safety
valve'' for unexpected, emergency expenditures that would be
exempt from sequestration, which served as the enforcement
mechanism for the caps and PAYGO. With the expiration of
section 251 on September 30, 2002 and the de facto expiration
of section 252 (by virtue of setting the scorecard to zero for
all fiscal years), section 502 of the 2004 resolution
reestablished the authority of the Senate to designate spending
and revenue changes as an emergency. In doing so, section 502
codified the criteria used in the definition of an emergency
and required committee reports and statements of managers to
justify the use of emergency designations with these criteria.
The criteria are as set out in subsection (c)(3)(B).
If an item of discretionary spending is accompanied by an
emergency designation, the discretionary spending limit and the
allocation to the Committee on Appropriations (as well as all
other levels in the most recently adopted budget resolution) is
held harmless for the costs associated with that spending. If a
revenue reduction or mandatory spending increase is accompanied
by an emergency designation, then the committee allocation and
the Senate's pay-go scorecard is also be held harmless
accordingly (again, as well as all other appropriate levels in
the resolution).
Section 402 of the 2005 Senate resolution restates (with
a technical correction) the Senate's emergency designation
point of order. This point of order was first included in the
fiscal year 2000 budget resolution. This point of order allows
any member to question the use of an emergency designation
while the bill, amendment or conference report containing the
designation is before the Senate (except for defense
appropriations). Once the point of order is made, it requires
60 votes to waive the point of order and retain the
designation. If the motion to waive is not successful, the
designation would be removed from the measure, and the spending
item would remain, in all likelihood making the bill (or
amendment) subject to a Budget Act point of order, which would
also require 60 votes to overcome. The removal of the
designation is accomplished by the same method as provided for
in the Byrd Rule (section 313 of the Congressional Budget Act
of 1974).
Section 403: Discretionary spending limits in the Senate
Section 504 of the 2004 budget resolution set out
discretionary spending limits for fiscal years 2003, 2004, and
2005. These limits are enforced in the Senate with a 60-vote
point of order. The limits set out with respect to fiscal year
2005 are applicable during consideration of the budget
resolution in the Senate. Therefore, any amendment that would
increase the level of discretionary spending over the level set
out in the 2004 resolution would also be subject to a 60-vote
point of order.
Section 402 of the Senate resolution sets out
congressional discretionary spending limits for the first two
years covered by the 2005 budget resolution (fiscal years 2005
and 2006) with respect to both budget authority and outlays.
Since the advent of statutory discretionary spending limits in
1990, a majority of budget resolution conference reports have
included language dealing with ``congressional caps.'' \1\
---------------------------------------------------------------------------
\1\ See: section 12(b) of H. Con. Res. 64 (103rd Cong.) the fiscal
year 1994 Concurrent Resolution on the Budget; section 24 of H. Con.
Res. 218 (103rd Cong.) the fiscal year 1995 Concurrent Resolution on
the Budget; Section 201 of H. Con. Res. 67 (104th Cong.) the fiscal
year 1996 Concurrent Resolution on the Budget; Section 301 of H. Con.
Res. 178 (104th Cong.) the fiscal year 1997 Concurrent Resolution on
the Budget; Section 201 of H. Con. Res. 84 (105th Cong.) the fiscal
year 1998 Concurrent Resolution on the Budget (all establishing
multiyear caps); Section 206 of H. Con. Res. 290 (106th Cong.) the
fiscal year 2001 Concurrent Resolution on the Budget; Section 203 of H.
Con. Res. 83 (107th Cong.) the fiscal year 2002 Concurrent Resolution
on the Budget (both providing a mechanism to accommodate an increase to
the current year's statutory cap); section 504 of H. Con. Res. 95
(108th Cong.) the fiscal year 2004 Concurrent Resolution on the Budget.
---------------------------------------------------------------------------
During debate of the Committee-reported resolution, an
amendment (SA 2742, offered by Senator Warner) to increase
discretionary spending for fiscal year 2005 through 2009 in
order to provide full funding of the President's request for
national defense was adopted by a vote of 95 to 4. The
amendment also called for an explicit increase to the
discretionary limits set out in the Committee-reported
resolution of $6.900 billion in budget authority and $5.409
billion in outlays for 2005 and $1.594 billion in outlays for
2006. No point of order was raised during consideration of this
amendment. As passed, the Senate resolution sets the following
amounts as the discretionary spending limits:
For fiscal year 2005: $819.673 billion in new
budget authority and $823.694 billion in outlays for
the discretionary category; $33.393 billion in outlays
for the highway category, and $1.488 billion in new
budget authority and $6.726 billion in outlays for the
transit category, for a total of $821.161 billion in
new budget authority and $863.813 billion in outlays.
For fiscal year 2006: $852.257 billion in new
budget authority and $885.860 billion in outlays for
the discretionary category. The Senate resolution sets
out only one unified category for 2006.
The Senate resolution also provides for a number of so-
called cap adjustments. The cap adjustments permit the chairman
of the Committee on the Budget to increase the discretionary
spending limit, the section 302(a) allocation to the Committee
on Appropriations, and any other appropriate levels in the
resolution if an appropriations bill provides additional
resources for the programs specified in the adjustment. These
are set out in title III of the resolution.
These discretionary spending limits would continue to be
enforced by a 60-vote point of order on two fronts: (1) there
would be a point of order against the fiscal year 2006 budget
resolution if it exceeds the limits for that year set in the
2005 resolution (or against any revision to the fiscal year
2005 resolution that does so) and (2) there would be a point of
order against any appropriations bill that causes any of the
discretionary limits to be exceeded.
Section 404: Scoring rules
Section 404 of the Senate resolution includes a number of
``scorekeeping rules.'' Pursuant to section 312(a) of the
Congressional Budget Act, the chairmen of the Committees on the
Budget of the House and Senate are responsible for determining
the costs of legislative proposals in their respective
chambers. From time to time, new scoring issues arise as
Congress responds to various fiscal needs. The rules set forth
in this section will serve as guidance to the chairman of the
Committee on the Budget, and the Senate as a whole, in
evaluating the cost of legislative proposals and applying the
budgetary discipline set out in budget resolutions and the
Congressional Budget Act of 1974.
As originally reported from the Committee on the Budget,
section 404(a) had set out a scoring rule (similar to the
President's proposal) intended to equalize the scoring
treatment of budget authority and outlays for the Pell Grant
program. Amendment 2851 was adopted by voice vote that
eliminated this provision in its entirety.
Subsection (a)--Bioshield. As reported from the Committee
on the Budget, section 404(b) had set out a scoring rule with
respect to possible changes in the availability of funding
already provided for Project Bioshield. The Bioshield program
was proposed in the President's fiscal year 2004 budget as a
new mandatory program. The fiscal year 2004 budget resolution
contained a ``reserve fund'' in the Senate in order to
accommodate the spending for this new proposal. In the absence
of authorization language, the Bioshield program was funded, in
its entirety, in the fiscal year 2004 appropriations act for
the Department of Homeland Security. Full funding (for the
period requested by the President) was accomplished by means of
an advance appropriation. This provision provided budget
authority as follows: $0.890 billion in new budget authority
for fiscal year 2004, $2.528 billion in new budget authority
for fiscal year 2005 and $2.175 billion in new budget authority
for fiscal year 2009. The amounts for 2005 and 2009 are advance
appropriations and, when combined with all the usual advance
appropriations, exceeded the cap on advance appropriations set
by section 501 of the 2004 budget resolution. Section 501
contains both a dollar limit for fiscal year 2005 and an
exclusive list of programs for which permissible advances may
be made. The Bioshield advance also violated the program list.
This new scoring rule, proposed under section 404(b) of the
Committee reported-resolution, provided that any legislative
change in the availability of these funds (such as a recission)
would not be scored for the purposes of budgetary enforcement.
Consequently, recissions of budget authority would not be
available as an offset for spending on other programs.
The Senate adopted an amendment (SA 2848 offered by
Senator Byrd, adopted by voice vote), that deleted the
Committee-reported Bioshield rule and replaced it with an
entirely new rule. The new rule, (now found in subsection (a))
requires the chairman of the Committee on the Budget to revise
the allocations and other budgetary aggregates by $2.528
billion (the amount of the advance appropriation already
enacted for Project Bioshield for fiscal year 2005) when the
2005 Homeland Security appropriations bill is reported. This
would hold the Committee on Appropriations harmless with
respect to the discretionary caps and the Committee's section
302(a) allocation for the cost of the 2005 advance
appropriation for Bioshield that was made in the 2004
appropriations bill.
Subsection (b)--Energy Savings Performance Contracts. The
Senate also adopted an amendment (SA 2823 offered by Senator
Inhofe, adopted by voice vote) that provides a directed-scoring
rule with respect to energy savings performance contracts
[ESPCs]. This new rule is now found in subsection (b) of
section 404. The rule would permit ESPCs to be reauthorized
without recognizing (scoring) the costs. Current authority of
federal agencies to enter into obligations for ESPCs has
expired (their cost has recently been about $250 million per
year). The conference report on the Energy bill (H.R. 6)
included a provision to reauthorize ESPCs, which CBO estimated
would cost $267 million in 2005 and $1.4 billion over 10 years.
Section 405: Adjustments to reflect changes in concepts and
definitions
Section 405(a) of the Senate resolution is virtually
identical to section 508 of the 2004 budget resolution. It
provides that upon enactment of legislation that changes
funding of an existing program from discretionary to mandatory
(or vice versa) the chairman of the Committee on the Budget
will adjust the levels in this budget resolution (including the
discretionary spending limits) to reflect such a change.
Section 405(b) of the Senate resolution provides a
similar rule for reported legislation that addresses changes in
the nature of offsetting receipts from the Power Marketing
Administration.
Section 406: Application and effect of changes in
allocations and aggregates
The Senate resolution retains language from previous
resolutions clarifying the process for implementing any
adjustment made pursuant to the reserve funds and discretionary
adjustments and the status of these adjusted levels. It also
clarifies that the Budget Committee determines scoring for
purposes of points of order.
Section 407: Rulemaking authority
The Senate resolution includes language identical to
section 222 of the fiscal year 2002 budget resolution, which
simply states Congress' authority to legislate rules of
procedure for either chamber.
Section 408: Pay as you go point of order in the Senate
The Committee-reported resolution did not contain any
language with respect to the pay-as-you-go rule because the
current rule (set out in section 505 of H. Con. Res. 95, the
fiscal year 2004 budget resolution) would not have expired
until September 30, 2008. The original Senate pay-as-you-go
point of order first appeared in the fiscal year 1994 budget
resolution. The previous version expired in its entirety on
September 30, 2002. The point of order was revised and extended
through April 15, 2003 when the Senate adopted S. Res. 304
(107th Congress) on October 16, 2002. S. Res. 304 included a
new provision of the pay-as-you-go rule making the rule
applicable to mandatory spending in appropriations bills in
order to prevent the exploitation of the fact that there were
no limits on discretionary spending for fiscal year 2003 due to
the expiration of the discretionary spending limits and the
lack of a fiscal year 2003 budget resolution.
The section 505 pay-as-you-go rule did not retain the
expanded application temporarily applied to appropriation bills
in S. Res. 304. Rather it resembles the previous versions of
the rule with one change: it applies on a post-budget
resolution policy basis. To accomplish this, a scorecard is
maintained by the chairman of the Committee on the Budget that
sets out the total level of change to the deficit assumed by
the most recently adopted budget resolution. Subsequent
legislation is to be measured against these balances.
But the current section 505 paygo rule was replaced by an
amendment to the 2005 budget resolution (SA 2748 offered by
Senator Feingold; adopted by a vote of 51 to 48). The amendment
reinstates the Senate's pay-as-you-go rule as it was in effect
prior to its expiration on September 30, 2002: any increases in
mandatory spending or reductions in revenues must be fully
offset (i.e., deficit-neutral) for the 1st year, the sum of
years 1 through 5, and the sum of years 6 through 10 with
respect to the most recently agreed to concurrent resolution on
the budget. The Feingold rule would remain in effect through
September 30, 2009.
House Amendment
Section 401: Restrictions on advance appropriations
Section 401 imposes a limitation on advance
appropriations similar to a provision included in the last
several budget resolutions. It effectively limits which
programs may receive an advance appropriation and establishes
an overall amount of advanced appropriations. The section
includes a general restriction that limits the programs that
may receive an advance appropriation and the total level of
such appropriations. Advance appropriations may be provided for
the accounts in appropriation bills identified under the
section ``Accounts Identified for Advanced Appropriations'' in
the Joint Statement of Managers on the Conference Report on the
Budget Resolution. The list is expected to be the same as that
which appears in this report in the section ``Additional Report
Language'' and with the same heading. Total advance
appropriations for these accounts may not exceed $23.568
billion in budget authority. The amount is essentially the same
as provided in previous budget resolutions, but it was adjusted
to reflect total advance appropriations provided for fiscal
years 2006 and 2007 (and any subsequent fiscal years, if
applicable). The section defines an ''advance appropriation''
as any new discretionary budget authority making general
appropriations or continuing appropriations for fiscal year
2005 that first becomes available for any fiscal year after
2005.
The limitation may be enforced by any member making a
point of order at the appropriate time against any advance
appropriations not falling within an exception or exceeding the
overall limit. The effect of a point of order under this
section, if sustained by the Chair, is to cause the
appropriation(s) to be stricken from the bill or joint
resolution. The bill itself, however, would still be considered
in the House.
Section 402: Emergency legislation
Section 402 provides the House with the authority to
designate spending provisions as ``emergencies.'' It adopts
criteria for evaluating emergency spending. It also exempts
from Congressional budgetary controls supplemental
appropriations for the Department of Defense for contingency
operations related to the global war on terrorism.
Subsection (a) provides a special exemption from budget
controls for a supplemental spending measure for the Department
of Defense for ``contingency operations related to the global
war on terrorism.'' Though $50 billion has been budgeted for
fiscal year 2005 in the budget resolution for this purpose, the
exact final amount has yet to be determined. The final level of
the supplemental will depend on the President's request and the
response of the Appropriations Committees of the House and the
Senate.
In order to trigger the exemption, the House must
specifically designate the appropriations as ``contingency
operations'' under section 402(a) of H. Con. Res. 393. As in an
emergency designation, such designated amounts will not be
counted in the determination of the cost of measures and hence
will not trigger a point of order under sections 302, 303, and
401 of the Congressional Budget Act.
Subsection (b) exempts spending designated as an
emergency under this section from the budget resolution and, as
such, spending would not trigger a point of order. This is
largely the same procedure as was included in the budget
resolution from fiscal year 2004, H. Con. Res. 95. Instead of
adjusting the allocations and budget aggregates by the amount
designated as an emergency, as was the case prior to the
expiration of the emergency designation at the end of fiscal
year 2002, subsection (b) provides that the spending (or
receipts) resulting from such a provision will not be counted
for purposes of determining whether a measure complies with the
budget resolution. This is consistent with the congressional
scoring conventions prior to the Balanced Budget Act of 1997.
Assuming a measure that includes this emergency designation is
otherwise in compliance with the budget resolution, it would
not be subject to a point of order under sections 302(f),
303(a), 311(a) or 401 of the Congressional Budget Act of 1974.
Committees reporting a measure that designates spending
as an emergency should include in the accompanying report, or
the conference committee in the joint statement of managers, a
statement justifying the emergency designation on the basis of
certain criteria. The criteria for designating a legitimate
emergency is that the underlying situation to which the
provision applies must pose a threat to life, property, or
national security and is also: sudden, quickly coming into
being, and not building up over time; an urgent, pressing, and
compelling need requiring immediate action; unforeseen,
unpredictable, unanticipated, and not permanent.
This definition was adapted from criteria developed by
previous administrations as part of an OMB Circular (A-11) on
the preparation and submission of budget estimates. The
subsection continues the practice of allowing the provisions
designated as emergencies to be exempt from the budget controls
and points of orders of the Congressional Budget Act.
Section 403: Compliance with section 13301 of the Budget
Enforcement Act of 1990
This section provides authority to include the
administrative expenses related to Social Security in the
allocation to the Appropriations Committee. This language is
necessary to ensure that the Appropriations Committee retains
control of administrative expenses through the Congressional
budget process. In the 106th Congress, the joint Leadership of
the House and Senate Budget Committees decided to discontinue
the practice of including administrative expenses in the budget
resolution. This change was intended to make the budget
resolution consistent with the Congressional Budget Office's
baseline which does not include administrative expenses for
Social Security. At the same time, the House Budget Committee
believed that these expenses should continue to be reflected in
the 302(a) allocations to the Appropriations Committee. Absent
a waiver of section 302(a) of the Budget Act, the inclusion of
these expenses in the allocation is construed as violating
302(a) of the Budget Act which states that the allocations must
reflect the discretionary amounts in the budget resolution (and
arguably, section 13301 of the Budget Enforcement Act, which
states that Social Security benefits and revenues are off-
budget).
Section 404: Application and effects of changes in
allocations and aggregates
This section sets forth the procedures for making
adjustments for the reserve funds included in this resolution.
Subsection (a)(1) and (2) provide that the adjustments may only
be made during the interval that the legislation is under
consideration and do not take effect until the legislation is
actually enacted. This is consistent with the procedures for
making adjustments for various initiatives under section 314 of
the Congressional Budget Act.
Subsection (a)(3) directs the chairman of the House
Budget Committee to insert the adjustments authorized by the
various reserve funds in the Congressional Record.
Subsection (b) clarifies that any adjustments made under
any of the reserve funds in the resolution have the same effect
as if they were part of the original levels set forth in
section 101. Therefore the adjusted levels are used to enforce
points of order against legislation inconsistent with the
allocations and aggregates included in the concurrent
resolution on the budget. Spending and tax measures are
compared to these adjusted levels to determine if they are
consistent with the budget resolution.
Subsection (c) clarifies that the House Budget Committee
determines the levels and estimates used to enforce points of
order, as is the case for enforcing budget-related points of
order. This section of the Budget Act provides the chairman of
the Budget Committee with the authority to advise the chairman
of the Committee of the Whole House on the appropriate levels
and estimates related to legislation being considered on the
floor.
Conference Agreement
Section 401: Restriction on advance appropriations
Section 401 reflects the Senate resolution's overall
limit on advance appropriations of $23.158 billion in fiscal
year 2006 as opposed to the House amendment, which limited
total advance appropriations to $23.568 billion over a two-year
(fiscal years 2006 and 2007) period. For the House, the
language is identical to section 501 in the Fiscal Year 2004
budget resolution, H. Con. Res. 95.
The list of permissible advances is as follows:
Accounts Identified for Advance Appropriations in the Senate
Interior: Elk Hills.
Labor, HHS:
Corporation for Public Broadcasting
Employment and Training Administration
Education for the Disadvantaged
School Improvement
Children and Family Services (Head Start)
Special Education
Vocational and Adult Education
Transportation, Treasury: Payment to Postal Service
Veterans, HUD: Section 8 Renewals
Accounts Identified for Advance Appropriations in the House
PART A: ADVANCE APPROPRIATIONS FOR FISCAL YEAR 2006
Interior Appropriations: Elk Hills
Labor, Health and Human Services, Education Appropriations:
Employment and Training Administration
Education for the Disadvantaged
School Improvement
Child and Family Services [Head Start]
Special Education
Vocational and Adult Education
Treasury, General Government Appropriations: Payment to Postal
Service
Veterans, Housing and Urban Development Appropriations: Section
8 Renewals
PART B: ADVANCE APPROPRIATIONS FOR FISCAL YEAR 2007
Labor, Health and Human Services, Education Appropriations:
Corporation for Public Broadcasting
Section 402: Emergency legislation
The conference agreement adopts section 402 of the House
amendment with respect to the rule on emergency spending. The
major difference between the House and Senate language was the
Senate requirement that the President explicitly agree to a
``contingent'' designation by the Congress (i.e., a spending
item with an emergency designation that originated in the
Congress and that was not originally requested by the
President). There were also minor differences in the criteria
used to evaluate the appropriate use of the emergency
designation. In addition, the conference agreement retains, for
the Senate only, the current Senate point of order regarding
the use of the emergency designation. The conference agreement
also adopts the House approach regarding the treatment of
supplemental appropriations for Iraq, but includes a level of
$50 billion for this purpose. The conference agreement sets out
this language in section 403--Exemption of Overseas Contingency
Operations.
Section 403: Exemption of overseas contingency operations
Section 403 of the conference agreement adopts language
from section 402(a) of the House amendment with a modification
reflecting the $50 billion assumed for overseas contingency
operations in the global war on terrorism to be provided in a
supplemental appropriations bill. In order to trigger the
exemption, funds must be ``designated by the Congress to be
contingency operations pursuant to section 403 of S. Con. Res.
95.'' As in an emergency designation, such designated amounts
will not be counted in the determination of the cost of
measures and hence will not trigger a point of order under
sections 302, 303, and 401 of the Congressional Budget Act or
sections 404 and 407 of the conference agreement. Provisions
exempted under this section may be included in any number of
measures provided the cumulative total does not exceed $50
billion.
Section 404: Discretionary spending limits in the Senate
Section 404 of the conference agreement retains the
language from section 403 (except the conference agreement
contains no 2006 limit) of the Senate resolution. Virtually
identical language was included in section 504 of last year's
budget resolution (H. Con. Res. 95, 108th Cong.). Section 403
sets out congressional discretionary spending limits for fiscal
year 2005 with respect to both budget authority and outlays.
Since the advent of statutory discretionary spending limits in
1990, a majority of budget resolution conference reports have
included language dealing with ``congressional caps'' (see
detailed discussion accompanying description of the Senate
resolution). These limits are enforced in the Senate with a 60-
vote point of order.
The limits set out in the conference agreement are as
follows:
With respect to fiscal year 2005: Because the
language in section 504 of the fiscal year 2004
resolution still governs the consideration of this
conference agreement, the limits for fiscal year 2005
are the same as those set out in that section (as
subsequently modified by permissible adjustments).
Although an amendment was adopted during consideration
in the Senate that increased this level, a waiver was
not sought or obtained.
Section 404 provides the chairman of the Committee on the
Budget with the authority to make adjustments to these
discretionary limits and the committee allocations for: (A)
transportation, (B) wildland fire suppression, and (C)
compliance with section 504 of H. Con. Res. 95 and the advance
appropriation provided in fiscal year 2004 for Project
Bioshield.
Section 405: Adjustments to reflect changes in concepts and
definitions
The House recedes to the Senate on section 405 of the
Senate resolution with an amendment. Subsection (a) authorizes
the chairmen of the Committees on the Budget of the House and
the Senate to adjust the resolution to take into account
changes in budgetary concepts and definitions upon enactment of
such legislation.
Subsection (b)(1) reflects the language from section
405(b) of the Senate resolution permitting the chairman of the
Committee on the Budget in the Senate to adjust the budget
resolution to accommodate legislation converting Power
Marketing Administration customer receipts, which are currently
treated as mandatory offsetting receipts, to offsetting
collections, which would then be credited against spending in
an appropriations measure. The language specifies the intent of
the Conferees that the proceeds from these customer receipts
would be available only to the Corps of Engineers and the Pick-
Sloan Missouri Basin project within the Bureau of Reclamation.
Subsection (b)(2) permits the House Budget Committee
chairman to make deficit neutral adjustments in the appropriate
spending and revenue levels in the budget resolution to permit
the consideration of legislation (other than reconciliation)
that extends the child tax credit.
Section 406: Application of changes in allocations and
aggregates
Section 406 of the conference agreement retains the
language of section 406 of the Senate Resolution (which is
similar to section 404 of the House amendment) clarifying both
the process for making adjustments under the reserve funds and
the status of the adjusted levels. It also determines scoring
for purposes of enforcing budget related points of order.
Section 407: Pay-as-you-go point of order in the Senate
The conference agreement retains the Senate's pay-as-you-
go provision, with an exemption for legislation considered
pursuant to Title II of this resolution. The Senate point of
order expires on April 15, 2005.
Section 408: Compliance with section 13301 of the Budget
Enforcement Act of 1990
Section 408 of the conference agreement retains the
language of section 402 of the House amendment regarding the
budgetary treatment in the House of discretionary spending for
the Social Security Administration.
Subtitle B: Report Submissions
Section 411: Submission of report on defense savings
Section 411 of the conference agreement retains the
language of section 202 of the House amendment, which requires
the House Armed Services Committee to submit a set of findings
to the House Budget Committee. Section 411 adds a comparable
requirement for the Senate Armed Services Committee to submit
findings to the Senate Budget Committee. The findings must
identify $2 billion dollars in savings from activities that are
determined to be of low priority or wasteful or unnecessary to
national defense. These savings can be used to accommodate
other priorities such as force protection, munitions and
surveillance capabilities. The report must be submitted to the
respective Budget Committees by June 25, 2004, and included in
the Congressional Record.
Section 412: Submission of report on homeland security
Section 412 of the conference agreement includes a
requirement that, the Senate Governmental Affairs Committee and
the House Select Homeland Security Committee submit to the
relevant Budget Committees findings that identify $150 million
dollars in savings from activities that are determined to be of
low priority, wasteful or unnecessary to homeland security. The
findings must also include recommendations on how to reallocate
the savings to programs and activities considered top priority
or which directly contribute to enhancing homeland defense. The
report must be submitted to the respective Budget Committees by
June 25, 2004 and included in the Congressional Record.
Subtitle C: Exercise of Rulemaking Powers
Section 421: Exercise of rulemaking powers
The House recedes to section 425 of the Senate
resolution, which affirms that the budget resolution is an act
of congressional rulemaking and subject to revisions by either
House. Section 421 of the conference agreement states the
authority by which Congress adopts the various budgetary
enforcement rules and procedures for the consideration of
certain legislation set out in the budget resolution.
Other Provisions
Senate Resolution
With respect to section 404 of the Senate resolution
(``Scoring Rules''), the conference agreement retains language
with respect to Project Bioshield which was set out in 404(a)
with some modifications which are discussed in section 313 of
the conference agreement. The language of section 404(b) with
respect to energy savings performance contracts has not been
retained in any form.
TITLE V: REQUIRED LEVELS AND AMOUNTS FOR OUTYEARS
This title reflects budgetary aggregates and function
totals for fiscal years 2006-2009, to comply with section 301
of the Congressional Budget Act.
TITLE VI: SENSE OF THE SENATE AND SENSE OF THE HOUSE
Senate Resolution
The Senate resolution contains twenty-two sections
dealing with ``Sense of the Senate'' provisions that were
adopted either during the markup or during consideration on the
Senate floor.
House Amendment
The House amendment contains two sections dealing with
``Sense of the House'' provisions.
Conference Agreement
The conference agreement contains the following
provisions:
Subtitle A: Sense of the Senate
Section 601: Sense of the Senate on budget process
reform.
Section 602: Sense of the Senate on budget process reform
with regard to the creation of bipartisan commissions to combat
waste, fraud, and abuse and to promote spending efficiency.
Section 603: Sense of the Senate on the relationship
between annual deficit spending and increases in debt service
costs.
Section 604: Sense of the Senate regarding the costs of
the medicare prescription drug program.
Section 605: Sense of the Senate on returning stability
to payments under medicare physician fee schedule.
Section 606: Sense of the Senate supporting funding
restoration for agriculture re-search and extension.
Section 607: Sense of the Senate concerning a national
animal identification program.
Section 608: Sense of the Senate regarding contributions
to The Global Fund to Fight AIDS, Tuberculosis, and Malaria.
Section 609: Sense of the Senate concerning child
nutrition funding.
Section 610: Sense of the Senate regarding compensation
for exposure to toxic substances at the Department of Energy.
Section 611: Sense of the Senate regarding tax incentives
for certain rural communities.
Section 612: Sense of the Senate concerning summer food
pilot projects.
Section 613: Sense of the Senate regarding closing the
``tax gap''.
Subtitle B: Sense of the House
Section 621: Sense of the House on entitlement reform.
Subtitle C: Sense of Congress
Section 631: Sense of Congress on spending
accountability.
ADDITIONAL BUDGET PROCESS AND ENFORCEMENT ITEMS IN THE SENATE
The Senate resolution was considered with the
acknowledgement that a number of provisions from previous
budget resolutions remain in effect. For the convenience of the
Senate, they are set out below.
I. Sense of the Senate amendments not germane on floor
One provision (section 204) of the fiscal year 2001
resolution (H. Con. Res. 290 106th Cong., 2nd Sess.) remains in
effect. It is discussed and set out below:
Section 204: Mechanisms for Strengthening Budgetary
Integrity (see subsection (g) regarding precatory
amendments)
The intent of subsection (g) was discussed on page 74 of
the conference report--explaining the Senate amendment--for the
fiscal year 2001 resolution. The conference adopted the Senate
language with a minor modification. Page 74 provides in
pertinent part:
Section 210(g) of the Senate amendment provides
guidance for interpreting the germaneness requirement
found in section 305(b)(2) of the Budget Act. Section
305 requires that all amendments offered on the floor
to a budget resolution or a reconciliation bill must be
germane to the underlying legislation and is enforced
by a 60-vote point of order in the Senate. The Senate
amendment states that an amendment will be considered
not germane if it contains only precatory (non-binding)
language. This is designed to place a 60-vote hurdle
with respect to what is commonly referred to as a
``sense of the Senate'' amendment. Note that it is not
meant to preclude the inclusion of ``purpose'' or
``findings'' language that is part of an otherwise
substantive amendment.
The minor modification adopted by the conferees was the
addition of the word ``predominately'' before ``precatory'' to
make clear that otherwise substantive provisions would not be
subject to 60-vote discipline. The text of subsection (g) is
set out below:
SEC. 204. MECHANISMS FOR STRENGTHENING BUDGETARY INTEGRITY.
* * * * * * *
(g) Precatory Amendments.--For purposes of interpreting
section 305(b)(2) of the Congressional Budget Act of 1974, an
amendment is not germane if it contains predominately precatory
language.
Two provisions (sections 503 and 505) from the fiscal
year 2004 resolution (H. Con. Res. 95, 108th Cong. 1st Sess.)
remain in effect in the Senate. They are set out or described
below.
II. 60-vote points of order through the end of fiscal year 2008
Section 503: Extension of supermajority enforcement
This section of the 2004 resolution extended for 5 years
(until September 30, 2008) the 60-vote requirement for waivers
and appeals with respect to those Budget Act points of order.
This requirement expired on September 30, 2002 (and was
temporarily extended through April 15, 2003 in S. Res. 304,
106th Congress).
ALLOCATIONS
As required in section 302 of the Congressional Budget
Act, the joint statement of managers includes an allocation,
based on the conference agreement, of total budget authority
and total budget outlays to each of the appropriate committees.
The allocations are as follows:
SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET
ACT, BUDGET YEAR TOTAL 2005
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Direct spending jurisdiction Entitlements funded in annual
---------------------------------- appropriations acts
Committee ---------------------------------
Budget Outlays Budget
authority authority Outlays
----------------------------------------------------------------------------------------------------------------
Appropriations:
General Purpose Discretionary........... 812,773 850,693 0 0
===================================================================
On-budget, regular.................. 808,524 814,021 0 0
Off-budget, regular................. 4,249 4,264 0 0
-------------------------------------------------------------------
Subtotal, regular................. 812,773 818,285 0 0
On-budget, emergency................ 0 32,408 0 0
Highways................................ 0 33,393 0 0
Mass Transit............................ 1,488 6,726 0 0
Mandatory............................... 460,008 445,525 0 0
-------------------------------------------------------------------
Total................................. 1,274,269 1,336,337 0 0
===================================================================
Agriculture, Nutrition, and Forestry........ 4,148 17,218 58,312 44,305
Armed Services.............................. 85,814 86,744 41 61
Banking, Housing and Urban Affairs.......... 14,425 2,646 175 107
Commerce, Science, and Transportation....... 11,487 6,618 864 860
Energy and Natural Resources................ 4,633 3,541 54 59
Environment and Public Works................ 35,818 2,279 0 0
Finance..................................... 810,529 811,603 339,533 339,450
Foreign Relations........................... 11,352 11,619 176 176
Governmental Affairs........................ 70,453 68,764 18,048 18,048
Judiciary................................... 9,232 8,665 574 575
Health, Education, Labor, and Pensions...... 11,028 10,192 2,966 2,928
Rules and Administration.................... 77 35 113 112
Intelligence................................ 0 0 239 239
Veterans' Affairs........................... 1,247 1,266 38,913 38,605
Indian Affairs.............................. 674 668 0 0
Small Business.............................. 0 0 0 0
Unassigned to Committee..................... -385,673 -392,557 0 0
-------------------------------------------------------------------
Total................................. 1,959,513 1,975,638 460,008 445,525
----------------------------------------------------------------------------------------------------------------
SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET
ACT, 5-YEAR TOTAL: 2005-2009
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Direct spending jurisdiction Entitlements funded in annual
-------------------------------------- appropriations acts
Committee -------------------------------------
Budget authority Outlays Budget authority Outlays
----------------------------------------------------------------------------------------------------------------
Agriculture, Nutrition, and Forestry 29,045 101,509 297,690 224,223
Armed Services...................... 470,311 470,952 201 278
Banking, Housing and Urban Affairs.. 77,878 12,531 875 476
Commerce, Science, and 47,046 20,708 4,692 4,671
Transportation.....................
Energy and Natural Resources........ 19,198 17,286 270 281
Environment and Public Works........ 187,471 10,026 0 0
Finance............................. 4,700,524 4,708,257 2,179,994 2,179,013
Foreign Relations................... 62,368 59,526 870 870
Governmental Affairs................ 378,764 370,008 97,537 97,537
Judiciary........................... 33,945 33,977 2,856 2,856
Health, Education, Labor, and 59,206 55,352 15,521 15,315
Pensions...........................
Rules and Administration............ 374 359 605 604
Intelligence........................ 0 0 1,275 1,275
Veterans' Affairs................... 6,225 6,500 186,134 185,440
Indian Affairs...................... 3,290 3,381 0 0
Small Business...................... 0 0 0 0
----------------------------------------------------------------------------------------------------------------
ALLOCATION OF SPENDING AUTHORITY TO HOUSE COMMITTEES FOR BUDGET YEAR
2005--COMMITTEE ON APPROPRIATIONS
[Millions of dollars]
------------------------------------------------------------------------
2005
------------------------------------------------------------------------
Discretionary Action:
General Purpose:
BA.................................................... 814,261
OT.................................................... 890,812
Section 313 Adjustments *:
BA.................................................... 7,158
OT.................................................... 14,516
Total Discretionary Action: BA...................... 821,419
After Section 313 Adjustments: OT............................. 905,328
Current Law Mandatory:
BA........................................................ 459,142
OT........................................................ 444,662
------------------------------------------------------------------------
* To be released by the Chairman of the Committee on the Budget upon
reporting by the Committee on Appropriations of the first bill or
joint resolution making regular appropriations for fiscal year 2005.
ALLOCATIONS OF SPENDING AUTHORITY TO HOUSE COMMITTEES FOR BUDGET YEAR
2005 AND FUTURE FISCAL YEARS--COMMITTEES OTHER THAN APPROPRIATIONS
[Millions of dollars]
------------------------------------------------------------------------
Total 2005-
2005 2009
------------------------------------------------------------------------
Agriculture Committee
Current Law:
BA........................................ 18,219 86,778
OT........................................ 17,297 86,272
Reauthorizations:
BA........................................ ........... 71,905
OT........................................ ........... 70,494
Total:
BA........................................ 18,219 158,683
OT........................................ 17,297 156,766
Armed Services Committee
Current Law:
BA........................................ 85,817 470,326
OT........................................ 86,748 470,968
Committee on Education and the Workforce
Current Law:
BA........................................ 7,097 39,185
OT........................................ 6,105 34,962
Discretionary Action:
BA........................................ 68 236
OT........................................ 56 230
Reauthorizations:
BA........................................ 399 10,479
OT........................................ 397 8,201
Total:
BA........................................ 7,564 49,900
OT........................................ 6,558 43,393
Energy and Commerce Committee
Current Law:
BA........................................ 154,932 1,129,671
OT........................................ 155,872 1,134,400
Discretionary Action:
BA........................................ 576 4,350
OT........................................ 483 3,381
Reauthorizations:
BA........................................ ........... 10,080
OT........................................ ........... 4,814
Total:
BA........................................ 155,508 1,144,101
OT........................................ 156,355 1,142,595
Financial Services Committee
Current Law:
BA........................................ 3,855 17,997
OT........................................ -361 -4,931
Discretionary Action:
BA........................................ 1 17
OT........................................ 1 17
Total:
BA........................................ 3,856 18,014
OT........................................ -360 -4,914
Government Reform Committee
Current Law:
BA........................................ 69,443 374,624
OT........................................ 67,754 365,868
Discretionary Action:
BA........................................ 1 19
OT........................................ 1 19
Total:
BA........................................ 69,444 374,643
OT........................................ 67,755 365,887
Committee on House Administration
Current Law:
BA........................................ 77 374
OT........................................ 35 359
International Relations Committee
Current Law:
BA........................................ 11,425 62,733
OT........................................ 11,712 59,925
Resources Committee
Current Law:
BA........................................ 4,788 20,522
OT........................................ 3,792 18,794
Discretionary Action:
BA........................................ 2 10
OT........................................ 2 10
Total:
BA........................................ 4,790 20,532
OT........................................ 3,794 18,804
Judiciary Committee
Current Law:
BA........................................ 9,357 34,610
OT........................................ 8,790 34,642
Discretionary Action:
BA........................................ 15 35
OT........................................ 15 35
Total:
BA........................................ 9,372 34,645
OT........................................ 8,805 34,677
Transportation and Infrastructure Committee
Current Law:
BA........................................ 16,755 77,995
OT........................................ 13,788 68,720
Discretionary Action:
BA........................................ 1,737 22,070
OT........................................ 4 12
Reauthorizations:
BA........................................ 41,010 212,450
OT........................................ 330 2,630
Total:
BA........................................ 59,502 312,515
OT........................................ 14,122 71,362
Science Committee
Current Law:
BA........................................ 31 159
OT........................................ 112 326
Small Business Committee
Current Law:
BA........................................ ........... ...........
OT........................................ ........... ...........
Veterans' Affairs Committee
Current Law:
BA........................................ 1,247 6,225
OT........................................ 1,266 6,500
Reauthorizations:
BA........................................ 467 7,530
OT........................................ 466 7,388
Total:
BA........................................ 1,714 13,755
OT........................................ 1,732 13,888
Ways and Means Committee
Current Law:
BA........................................ 641,589 3,782,374
OT........................................ 643,106 3,788,443
Discretionary Action:
BA........................................ 1,368 3,470
OT........................................ 804 3,244
Reconciliation:
BA........................................ ........... 4,600
OT........................................ ........... 4,600
Reauthorizations:
BA........................................ 19,606 100,666
OT........................................ 18,606 100,069
Total:
BA........................................ 662,563 3,891,110
OT........................................ 662,516 3,896,356
------------------------------------------------------------------------
ECONOMIC ASSUMPTIONS
Section 301(g)(2) of the Congressional Budget Act
requires that the joint explanatory statement accompanying a
conference report on a budget resolution set forth the common
economic assumptions upon which the joint statement and
conference report are based. The conference agreement is built
upon the economic forecasts developed by the Congressional
Budget Office [CBO] and presented in CBO's ``The Budget and
Economic Outlook: Fiscal Years 2005-2014'' (January 2004).
Senate Resolution.--CBO's economic assumptions were used.
House Amendment.--CBO's economic assumptions were used.
Conference Agreement.--CBO's economic assumptions were
used.
ECONOMIC ASSUMPTIONS OF BUDGET RESOLUTION
[Calendar years 2004-2009]
----------------------------------------------------------------------------------------------------------------
2004 2005 2006 2007 2008 2009
----------------------------------------------------------------------------------------------------------------
Percent Change (Year to Year):
Real GDP.............................................. 4.8 4.2 3.2 2.7 2.8 2.8
GDP Price Index....................................... 1.1 1.1 1.5 1.8 1.9 1.9
Consumer Price Index.................................. 1.6 1.7 2.0 2.2 2.2 2.2
Annual Rate
Unemployment.......................................... 5.8 5.3 5.0 5.1 5.2 5.2
Three-Month T-Bill.................................... 1.3 3.0 4.0 4.6 4.6 4.6
Ten-Year T-Note....................................... 4.6 5.4 5.5 5.5 5.5 5.5
----------------------------------------------------------------------------------------------------------------
Source: CBO.
PUBLIC DEBT: AMENDING THE STATUTORY LIMIT PURSUANT TO HOUSE RULE XXVII
The adoption of this conference agreement by the two
Houses would result in the engrossment of a House Joint
Resolution adjusting the level of the statutory limit on the
public debt pursuant to House Rule XXVII. In consonance with
clause 3 of that rule, the conferees contemplate a joint
resolution of the following form:
Resolved, by the Senate and the House of
Representatives of the United States of America in
Congress assembled, That subsection (b) of section 3101
of title 31, United States Code, is amended by striking
out the dollar limitation contained in such subsection
and inserting in lieu thereof $8,074,000,000,000.
If the joint resolution is enacted to raise the debt
limit to the level contemplated by this conference agreement,
the limit will be increased from $7.384 trillion to $8.074
trillion.
Legislative jurisdiction over the public debt remains
with the Finance Committee in the Senate and the Committee on
Ways and Means in the House.
General Considerations
Rule XXVII in the House, related to amending the
statutory public debt level, does not preclude the committees
of jurisdiction from originating public debt limit bills
whenever necessary. The Senate resolution includes a
reconciliation instruction to the Finance Committee to report a
bill increasing the statutory limit on the public debt; the
House amendment contains no debt limit reconciliation language.
The conference agreement contains instructions to the Finance
Committee in the Senate to report a bill to increase the
statutory debt limit by $690 billion.
Jim Nussle,
Rob Portman,
Managers on the Part of the House.
Don Nickles,
Pete Domenici,
Chuck Grassley,
Judd Gregg,
Managers on the Part of the Senate.
