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108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     108-71

======================================================================
 
        CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2004

                                _______
                                

                 April 10, 2003.--Ordered to be printed

                                _______
                                

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

                           CONFERENCE REPORT

                     [To accompany H. Con. Res. 95]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the concurrent 
resolution (H. Con. Res. 95), establishing the congressional 
budget for the United States Government for fiscal year 2004 
and setting forth appropriate budgetary levels for fiscal years 
2003 and 2005 through 2013, having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2004.

    (a) Declaration.--The Congress declares that the concurrent 
resolution on the budget for fiscal year 2004 is hereby 
established and that the appropriate budgetary levels for 
fiscal years 2003 and 2005 through 2013 are hereby set forth.
    (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 2004.

                 TITLE I--RECOMMENDED LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.
Sec. 102. Social security.
Sec. 103. Major functional categories.

                        TITLE II--RECONCILIATION

Sec. 201. Reconciliation for economic growth and tax simplification and 
          fairness.
Sec. 202. Limit on Senate consideration of reconciliation.

       TITLE III--SUBMISSIONS TO ELIMINATE WASTE, FRAUD, AND ABUSE

Sec. 301. Submissions of findings providing for the elimination of 
          waste, fraud, and abuse in mandatory programs.

            TITLE IV--RESERVE FUNDS AND CONTINGENCY PROCEDURE

 Subtitle A--Reserve Funds for Legislation Assumed in Budget Aggregates

Sec. 401. Reserve fund for medicare modernization and prescription 
          drugs.
Sec. 402. Reserve fund for medicaid reform.
Sec. 403. Reserve fund for State children's health insurance program.
Sec. 404. Reserve fund for project bioshield.
Sec. 405. Reserve fund for health insurance for the uninsured.
Sec. 406. Reserve fund for children with special needs.

                    Subtitle B--Contingency Procedure

Sec. 411. Contingency procedure for surface transportation.

           Subtitle C--Adjustments to Fiscal Year 2003 Levels

Sec. 421. Supplemental appropriations for fiscal year 2003.

                       TITLE V--BUDGET ENFORCEMENT

Sec. 501. Restrictions on advance appropriations.
Sec. 502. Emergency legislation.
Sec. 503. Extension of supermajority enforcement.
Sec. 504. Discretionary spending limits in the Senate.
Sec. 505. Pay-as-you-go point of order in the Senate.
Sec. 506. Compliance with section 13301 of the Budget Enforcement Act of 
          1990.
Sec. 507. Application and effect of changes in allocations and 
          aggregates.
Sec. 508. Adjustments to reflect changes in concepts and definitions.

                      TITLE VI--SENSE OF THE SENATE

Sec. 601. Sense of the Senate on Federal employee pay.
Sec. 602. Sense of the Senate regarding Pell Grants.
Sec. 603. Sense of the Senate on emergency and disaster assistance for 
          livestock and agriculture producers.
Sec. 604. Social security restructuring.
Sec. 605. Sense of the Senate concerning State fiscal relief.
Sec. 606. Federal agency review commission.
Sec. 607. Sense of the Senate regarding highway spending.
Sec. 608. Sense of the Senate on reports on liabilities and future 
          costs.
Sec. 609. Sense of the Senate concerning an expansion in health care 
          coverage.
Sec. 610. Sense of the Senate concerning programs of the Corps of 
          Engineers.
Sec. 611. Sense of the Senate concerning Native American health.
Sec. 612. Sense of the Senate on providing tax and other incentives to 
          revitalize rural America.
Sec. 613. Sense of the Senate concerning children's graduate medical 
          education.
Sec. 614. Sense of the Senate on funding for criminal justice.
Sec. 615. Sense of the Senate concerning funding for drug treatment 
          programs.
Sec. 616. Sense of Senate concerning free trade agreement with the 
          United Kingdom.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

    The following budgetary levels are appropriate for each of 
fiscal years 2003 through 2013:
            (1) Federal revenues.--For purposes of the 
        enforcement of this resolution:
                    (A) The recommended levels of Federal 
                revenues are as follows:
                            Fiscal year 2003: 
                        $1,303,111,000,000.
                            Fiscal year 2004: 
                        $1,325,452,000,000.
                            Fiscal year 2005: 
                        $1,493,875,000,000.
                            Fiscal year 2006: 
                        $1,657,511,000,000.
                            Fiscal year 2007: 
                        $1,790,251,000,000.
                            Fiscal year 2008: 
                        $1,901,844,000,000.
                            Fiscal year 2009: 
                        $2,053,762,000,000.
                            Fiscal year 2010: 
                        $2,167,937,000,000.
                            Fiscal year 2011: 
                        $2,270,540,000,000.
                            Fiscal year 2012: 
                        $2,409,572,000,000.
                            Fiscal year 2013: 
                        $2,553,985,000,000.
                    (B) The amounts by which the aggregate 
                levels of Federal revenues should be reduced 
                are as follows:
                            Fiscal year 2003: $56,723,000,000.
                            Fiscal year 2004: $140,918,000,000.
                            Fiscal year 2005: $123,151,000,000.
                            Fiscal year 2006: $83,161,000,000.
                            Fiscal year 2007: $62,915,000,000.
                            Fiscal year 2008: $61,133,000,000.
                            Fiscal year 2009: $24,568,000,000.
                            Fiscal year 2010: $25,105,000,000.
                            Fiscal year 2011: $156,956,000,000.
                            Fiscal year 2012: $240,207,000,000.
                            Fiscal year 2013: $250,225,000,000.
            (2) New budget authority.--For purposes of the 
        enforcement of this resolution, the appropriate levels 
        of total new budget authority are as follows:
                    Fiscal year 2003: $1,862,613,000,000.
                    Fiscal year 2004: $1,861,004,000,000.
                    Fiscal year 2005: $1,990,236,000,000.
                    Fiscal year 2006: $2,122,301,000,000.
                    Fiscal year 2007: $2,232,829,000,000.
                    Fiscal year 2008: $2,348,872,000,000.
                    Fiscal year 2009: $2,454,439,000,000.
                    Fiscal year 2010: $2,555,612,000,000.
                    Fiscal year 2011: $2,669,462,000,000.
                    Fiscal year 2012: $2,754,007,000,000.
                    Fiscal year 2013: $2,875,121,000,000.
            (3) Budget outlays.--For purposes of the 
        enforcement of this resolution, the appropriate levels 
        of total budget outlays are as follows:
                    Fiscal year 2003: $1,815,395,000,000.
                    Fiscal year 2004: $1,883,834,000,000.
                    Fiscal year 2005: $1,981,402,000,000.
                    Fiscal year 2006: $2,089,299,000,000.
                    Fiscal year 2007: $2,190,576,000,000.
                    Fiscal year 2008: $2,307,259,000,000.
                    Fiscal year 2009: $2,419,846,000,000.
                    Fiscal year 2010: $2,527,898,000,000.
                    Fiscal year 2011: $2,651,220,000,000.
                    Fiscal year 2012: $2,723,935,000,000.
                    Fiscal year 2013: $2,855,491,000,000.
            (4) Deficits (on-budget).--For purposes of the 
        enforcement of this resolution, the amounts of the 
        deficits (on-budget) are as follows:
                    Fiscal year 2003: $512,284,000,000.
                    Fiscal year 2004: $558,382,000,000.
                    Fiscal year 2005: $487,527,000,000.
                    Fiscal year 2006: $431,788,000,000.
                    Fiscal year 2007: $400,325,000,000.
                    Fiscal year 2008: $405,415,000,000.
                    Fiscal year 2009: $366,084,000,000.
                    Fiscal year 2010: $359,961,000,000.
                    Fiscal year 2011: $380,680,000,000.
                    Fiscal year 2012: $314,363,000,000.
                    Fiscal year 2013: $301,506,000,000.
            (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 2003: $6,747,000,000,000.
                    Fiscal year 2004: $7,384,000,000,000.
                    Fiscal year 2005: $7,978,000,000,000.
                    Fiscal year 2006: $8,534,000,000,000.
                    Fiscal year 2007: $9,064,000,000,000.
                    Fiscal year 2008: $9,602,000,000,000.
                    Fiscal year 2009: $10,102,000,000,000.
                    Fiscal year 2010: $10,601,000,000,000.
                    Fiscal year 2011: $11,125,000,000,000.
                    Fiscal year 2012: $11,588,000,000,000.
                    Fiscal year 2013: $12,040,000,000,000.
            (6) Debt held by the public.--The appropriate 
        levels of debt held by the public are as follows:
                    Fiscal year 2003: $3,917,000,000,000.
                    Fiscal year 2004: $4,299,000,000,000.
                    Fiscal year 2005: $4,599,000,000,000.
                    Fiscal year 2006: $4,829,000,000,000.
                    Fiscal year 2007: $5,007,000,000,000.
                    Fiscal year 2008: $5,169,000,000,000.
                    Fiscal year 2009: $5,272,000,000,000.
                    Fiscal year 2010: $5,349,000,000,000.
                    Fiscal year 2011: $5,428,000,000,000.
                    Fiscal year 2012: $5,424,000,000,000.
                    Fiscal year 2013: $5,394,000,000,000.

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 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 2003: $531,607,000,000.
            Fiscal year 2004: $557,821,000,000.
            Fiscal year 2005: $587,775,000,000.
            Fiscal year 2006: $619,062,000,000.
            Fiscal year 2007: $651,148,000,000.
            Fiscal year 2008: $684,429,000,000.
            Fiscal year 2009: $719,132,000,000.
            Fiscal year 2010: $755,754,000,000.
            Fiscal year 2011: $792,152,000,000.
            Fiscal year 2012: $829,568,000,000.
            Fiscal year 2013: $869,690,000,000.
    (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 2003: $366,278,000,000.
            Fiscal year 2004: $380,389,000,000.
            Fiscal year 2005: $390,148,000,000.
            Fiscal year 2006: $402,413,000,000.
            Fiscal year 2007: $415,269,000,000.
            Fiscal year 2008: $429,061,000,000.
            Fiscal year 2009: $445,442,000,000.
            Fiscal year 2010: $463,613,000,000.
            Fiscal year 2011: $482,034,000,000.
            Fiscal year 2012: $504,888,000,000.
            Fiscal year 2013: $531,118,000,000.
    (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 2003:
                    (A) New budget authority, $3,812,000,000.
                    (B) Outlays, $3,838,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $4,257,000,000.
                    (B) Outlays, $4,207,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $4,338,000,000.
                    (B) Outlays, $4,301,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $4,424,000,000.
                    (B) Outlays, $4,409,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $4,522,000,000.
                    (B) Outlays, $4,505,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $4,638,000,000.
                    (B) Outlays, $4,617,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $4,792,000,000.
                    (B) Outlays, $4,766,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $4,954,000,000.
                    (B) Outlays, $4,924,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $5,121,000,000.
                    (B) Outlays, $5,091,000,000.
            Fiscal year 2012:
                    (A) New budget authority, $5,292,000,000.
                    (B) Outlays, $5,260,000,000.
            Fiscal year 2013:
                    (A) New budget authority, $5,471,000,000.
                    (B) Outlays, $5,439,000,000.

SEC. 103. MAJOR FUNCTIONAL CATEGORIES.

    The Congress determines and declares that the appropriate 
levels of new budget authority and outlays for fiscal years 
2003 through 2013 for each major functional category are:
            (1) National Defense (050):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $392,494,000,000.
                            (B) Outlays, $386,229,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $400,546,000,000.
                            (B) Outlays, $400,916,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $420,071,000,000.
                            (B) Outlays, $414,237,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $440,185,000,000.
                            (B) Outlays, $426,011,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $460,435,000,000.
                            (B) Outlays, $438,656,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $480,886,000,000.
                            (B) Outlays, $462,861,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $491,951,000,000.
                            (B) Outlays, $479,249,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $502,301,000,000.
                            (B) Outlays, $493,195,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $511,859,000,000.
                            (B) Outlays, $508,131,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $520,553,000,000.
                            (B) Outlays, $510,509,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $529,428,000,000.
                            (B) Outlays, $524,494,000,000.
            (2) International Affairs (150):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $22,506,000,000.
                            (B) Outlays, $19,283,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $25,681,000,000.
                            (B) Outlays, $24,207,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $29,734,000,000.
                            (B) Outlays, $24,917,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $32,308,000,000.
                            (B) Outlays, $26,539,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $33,603,000,000.
                            (B) Outlays, $28,464,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $34,611,000,000.
                            (B) Outlays, $29,604,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $35,413,000,000.
                            (B) Outlays, $30,733,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $36,258,000,000.
                            (B) Outlays, $31,689,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $37,136,000,000.
                            (B) Outlays, $32,565,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $38,005,000,000.
                            (B) Outlays, $33,408,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $38,885,000,000.
                            (B) Outlays, $34,298,000,000.
            (3) General Science, Space, and Technology (250):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $23,153,000,000.
                            (B) Outlays, $21,556,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $23,927,000,000.
                            (B) Outlays, $22,799,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $24,433,000,000.
                            (B) Outlays, $23,861,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $25,217,000,000.
                            (B) Outlays, $24,485,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $26,055,000,000.
                            (B) Outlays, $25,221,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $26,832,000,000.
                            (B) Outlays, $25,948,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $27,462,000,000.
                            (B) Outlays, $26,639,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $28,121,000,000.
                            (B) Outlays, $27,296,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $28,805,000,000.
                            (B) Outlays, $27,963,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $29,492,000,000.
                            (B) Outlays, $28,639,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $30,185,000,000.
                            (B) Outlays, $29,319,000,000.
            (4) Energy (270):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $2,074,000,000.
                            (B) Outlays, $439,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $2,634,000,000.
                            (B) Outlays, $873,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $2,797,000,000.
                            (B) Outlays, $947,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $2,714,000,000.
                            (B) Outlays, $1,272,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $2,540,000,000.
                            (B) Outlays, $1,069,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $3,080,000,000.
                            (B) Outlays, $1,419,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $3,090,000,000.
                            (B) Outlays, $1,686,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $3,194,000,000.
                            (B) Outlays, $1,794,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $3,296,000,000.
                            (B) Outlays, $1,976,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $3,408,000,000.
                            (B) Outlays, $2,357,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $3,520,000,000.
                            (B) Outlays, $2,326,000,000.
            (5) Natural Resources and Environment (300):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $30,816,000,000.
                            (B) Outlays, $28,940,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $31,623,000,000.
                            (B) Outlays, $30,782,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $32,504,000,000.
                            (B) Outlays, $31,654,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $32,962,000,000.
                            (B) Outlays, $32,830,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $33,386,000,000.
                            (B) Outlays, $33,127,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $34,064,000,000.
                            (B) Outlays, $33,527,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $35,183,000,000.
                            (B) Outlays, $34,544,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $36,021,000,000.
                            (B) Outlays, $35,360,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $36,829,000,000.
                            (B) Outlays, $36,163,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $37,529,000,000.
                            (B) Outlays, $36,836,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $38,214,000,000.
                            (B) Outlays, $37,600,000,000.
            (6) Agriculture (350):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $24,418,000,000.
                            (B) Outlays, $23,365,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $24,583,000,000.
                            (B) Outlays, $23,656,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $27,003,000,000.
                            (B) Outlays, $25,763,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $26,828,000,000.
                            (B) Outlays, $25,593,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $26,299,000,000.
                            (B) Outlays, $25,107,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $25,507,000,000.
                            (B) Outlays, $24,381,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $26,092,000,000.
                            (B) Outlays, $25,128,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $25,545,000,000.
                            (B) Outlays, $24,716,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $24,991,000,000.
                            (B) Outlays, $24,180,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $24,573,000,000.
                            (B) Outlays, $23,778,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $24,297,000,000.
                            (B) Outlays, $23,498,000,000.
            (7) Commerce and Housing Credit (370):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $8,812,000,000.
                            (B) Outlays, $5,881,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $7,516,000,000.
                            (B) Outlays, $3,574,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $8,743,000,000.
                            (B) Outlays, $4,050,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $8,280,000,000.
                            (B) Outlays, $3,116,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $8,626,000,000.
                            (B) Outlays, $2,651,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $8,743,000,000.
                            (B) Outlays, $2,243,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $8,526,000,000.
                            (B) Outlays, $2,019,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $8,407,000,000.
                            (B) Outlays, $1,538,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $8,386,000,000.
                            (B) Outlays, $934,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $8,489,000,000.
                            (B) Outlays, $642,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $8,563,000,000.
                            (B) Outlays, $756,000,000.
            (8) Transportation (400):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $64,091,000,000.
                            (B) Outlays, $67,847,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $69,506,000,000.
                            (B) Outlays, $69,869,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $70,489,000,000.
                            (B) Outlays, $69,442,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $72,496,000,000.
                            (B) Outlays, $70,191,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $75,278,000,000.
                            (B) Outlays, $71,786,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $76,927,000,000.
                            (B) Outlays, $73,659,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $78,878,000,000.
                            (B) Outlays, $75,632,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $77,747,000,000.
                            (B) Outlays, $77,233,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $78,624,000,000.
                            (B) Outlays, $78,291,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $79,527,000,000.
                            (B) Outlays, $79,317,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $80,466,000,000.
                            (B) Outlays, $80,346,000,000.
            (9) Community and Regional Development (450):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $12,251,000,000.
                            (B) Outlays, $15,994,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $14,063,000,000.
                            (B) Outlays, $15,823,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $14,138,000,000.
                            (B) Outlays, $15,872,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $14,321,000,000.
                            (B) Outlays, $14,961,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $14,536,000,000.
                            (B) Outlays, $14,664,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $14,745,000,000.
                            (B) Outlays, $14,123,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $14,980,000,000.
                            (B) Outlays, $14,298,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $15,233,000,000.
                            (B) Outlays, $14,501,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $15,492,000,000.
                            (B) Outlays, $14,750,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $15,755,000,000.
                            (B) Outlays, $14,992,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $16,023,000,000.
                            (B) Outlays, $15,259,000,000.
            (10) Education, Training, Employment, and Social 
        Services (500):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $82,699,000,000.
                            (B) Outlays, $81,455,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $90,035,000,000.
                            (B) Outlays, $84,205,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $91,442,000,000.
                            (B) Outlays, $87,020,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $93,428,000,000.
                            (B) Outlays, $90,541,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $95,569,000,000.
                            (B) Outlays, $92,986,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $97,925,000,000.
                            (B) Outlays, $95,118,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $99,813,000,000.
                            (B) Outlays, $97,440,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $101,551,000,000.
                            (B) Outlays, $99,289,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $103,529,000,000.
                            (B) Outlays, $101,117,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $105,790,000,000.
                            (B) Outlays, $102,985,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $107,265,000,000.
                            (B) Outlays, $104,934,000,000.
            (11) Health (550):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $222,913,000,000.
                            (B) Outlays, $217,881,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $240,554,000,000.
                            (B) Outlays, $238,785,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $259,701,000,000.
                            (B) Outlays, $259,403,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $279,236,000,000.
                            (B) Outlays, $279,024,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $299,614,000,000.
                            (B) Outlays, $298,681,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $322,061,000,000.
                            (B) Outlays, $320,731,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $345,548,000,000.
                            (B) Outlays, $344,059,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $370,626,000,000.
                            (B) Outlays, $369,097,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $396,818,000,000.
                            (B) Outlays, $395,280,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $415,790,000,000.
                            (B) Outlays, $414,384,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $445,484,000,000.
                            (B) Outlays, $444,082,000,000.
            (12) Medicare (570):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $248,586,000,000.
                            (B) Outlays, $248,434,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $266,018,000,000.
                            (B) Outlays, $266,283,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $282,682,000,000.
                            (B) Outlays, $285,630,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $321,623,000,000.
                            (B) Outlays, $318,384,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $343,717,000,000.
                            (B) Outlays, $343,987,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $369,244,000,000.
                            (B) Outlays, $369,119,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $395,368,000,000.
                            (B) Outlays, $395,107,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $423,288,000,000.
                            (B) Outlays, $423,546,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $453,285,000,000.
                            (B) Outlays, $456,642,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $485,951,000,000.
                            (B) Outlays, $482,125,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $526,553,000,000.
                            (B) Outlays, $526,809,000,000.
            (13) Income Security (600):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $326,390,000,000.
                            (B) Outlays, $334,177,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $319,518,000,000.
                            (B) Outlays, $324,840,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $333,821,000,000.
                            (B) Outlays, $337,123,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $341,816,000,000.
                            (B) Outlays, $344,292,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $349,199,000,000.
                            (B) Outlays, $350,945,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $361,697,000,000.
                            (B) Outlays, $362,808,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $373,372,000,000.
                            (B) Outlays, $374,083,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $384,844,000,000.
                            (B) Outlays, $385,347,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $400,266,000,000.
                            (B) Outlays, $400,688,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $403,738,000,000.
                            (B) Outlays, $404,146,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $418,672,000,000.
                            (B) Outlays, $419,245,000,000.
            (14) Social Security (650):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $13,255,000,000.
                            (B) Outlays, $13,255,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $14,294,000,000.
                            (B) Outlays, $14,293,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $15,471,000,000.
                            (B) Outlays, $15,471,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $16,421,000,000.
                            (B) Outlays, $16,421,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $17,919,000,000.
                            (B) Outlays, $17,919,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $19,704,000,000.
                            (B) Outlays, $19,704,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $21,810,000,000.
                            (B) Outlays, $21,810,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $24,283,000,000.
                            (B) Outlays, $24,283,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $28,170,000,000.
                            (B) Outlays, $28,170,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $31,357,000,000.
                            (B) Outlays, $31,357,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $34,347,000,000.
                            (B) Outlays, $34,347,000,000.
            (15) Veterans Benefits and Services (700):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $57,597,000,000.
                            (B) Outlays, $57,486,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $63,779,000,000.
                            (B) Outlays, $63,209,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $67,135,000,000.
                            (B) Outlays, $66,553,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $65,397,000,000.
                            (B) Outlays, $64,995,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $63,874,000,000.
                            (B) Outlays, $63,442,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $67,666,000,000.
                            (B) Outlays, $67,398,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $69,279,000,000.
                            (B) Outlays, $68,924,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $70,992,000,000.
                            (B) Outlays, $70,588,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $75,669,000,000.
                            (B) Outlays, $75,249,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $72,618,000,000.
                            (B) Outlays, $72,097,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $77,455,000,000.
                            (B) Outlays, $76,989,000,000.
            (16) Administration of Justice (750):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $38,543,000,000.
                            (B) Outlays, $37,712,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $37,626,000,000.
                            (B) Outlays, $40,788,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $37,946,000,000.
                            (B) Outlays, $39,193,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $37,984,000,000.
                            (B) Outlays, $38,329,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $38,461,000,000.
                            (B) Outlays, $38,252,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $39,477,000,000.
                            (B) Outlays, $39,128,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $40,497,000,000.
                            (B) Outlays, $40,212,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $41,599,000,000.
                            (B) Outlays, $41,299,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $42,889,000,000.
                            (B) Outlays, $42,472,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $44,207,000,000.
                            (B) Outlays, $43,760,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $45,576,000,000.
                            (B) Outlays, $45,120,000,000.
            (17) General Government (800):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $18,185,000,000.
                            (B) Outlays, $18,110,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $20,202,000,000.
                            (B) Outlays, $20,066,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $20,635,000,000.
                            (B) Outlays, $20,714,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $20,656,000,000.
                            (B) Outlays, $20,485,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $21,126,000,000.
                            (B) Outlays, $20,876,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $21,236,000,000.
                            (B) Outlays, $21,013,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $21,946,000,000.
                            (B) Outlays, $21,504,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $22,695,000,000.
                            (B) Outlays, $22,212,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $23,458,000,000.
                            (B) Outlays, $22,946,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $24,255,000,000.
                            (B) Outlays, $23,880,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $25,076,000,000.
                            (B) Outlays, $24,520,000,000.
            (18) Net Interest (900):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $240,176,000,000.
                            (B) Outlays, $240,176,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $259,414,000,000.
                            (B) Outlays, $259,414,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $310,630,000,000.
                            (B) Outlays, $310,630,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $352,219,000,000.
                            (B) Outlays, $352,219,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $380,574,000,000.
                            (B) Outlays, $380,574,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $405,647,000,000.
                            (B) Outlays, $405,647,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $429,542,000,000.
                            (B) Outlays, $429,542,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $450,651,000,000.
                            (B) Outlays, $450,651,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $473,381,000,000.
                            (B) Outlays, $473,381,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        $496,015,000,000.
                            (B) Outlays, $496,015,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        $514,513,000,000.
                            (B) Outlays, $514,513,000,000.
            (19) Allowances (920):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $74,758,000,000.
                            (B) Outlays, $38,279,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        -$7,621,000,000.
                            (B) Outlays, $22,346,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        -$6,541,000,000.
                            (B) Outlays, $1,520,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        -$7,331,000,000.
                            (B) Outlays, -$5,930,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        -$8,947,000,000.
                            (B) Outlays, -$8,796,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        -$9,959,000,000.
                            (B) Outlays, -$9,951,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        -$11,526,000,000.
                            (B) Outlays, -$9,978,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        -$12,888,000,000.
                            (B) Outlays, -$10,880,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        -$16,414,000,000.
                            (B) Outlays, -$12,671,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        -$21,460,000,000.
                            (B) Outlays, -$15,707,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        -$25,618,000,000.
                            (B) Outlays, -$19,181,000,000.
                          (20) Undistributed Offsetting 
                        Receipts (950):
                    Fiscal year 2003:
                            (A) New budget authority, 
                        -$41,104,000,000.
                            (B) Outlays, -$41,104,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        -$42,894,000,000.
                            (B) Outlays, -$42,894,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        -$52,598,000,000.
                            (B) Outlays, -$52,598,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        -$54,459,000,000.
                            (B) Outlays, -$54,459,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        -$49,035,000,000.
                            (B) Outlays, -$49,035,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        -$51,221,000,000.
                            (B) Outlays, -$51,221,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        -$52,785,000,000.
                            (B) Outlays, -$52,785,000,000.
            Fiscal year 2010:
                            (A) New budget authority, 
                        -$54,856,000,000.
                            (B) Outlays, -$54,856,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        -$57,007,000,000.
                            (B) Outlays, -$57,007,000,000.
                    Fiscal year 2012:
                            (A) New budget authority, 
                        -$61,585,000,000.
                            (B) Outlays, -$61,585,000,000.
                    Fiscal year 2013:
                            (A) New budget authority, 
                        -$63,783,000,000.
                            (B) Outlays, -$63,783,000,000.

                        TITLE II--RECONCILIATION

SEC. 201. RECONCILIATION FOR ECONOMIC GROWTH AND TAX SIMPLIFICATION AND 
                    FAIRNESS.

      (a) In the House.--The House Committee on Ways and Means 
shall report a reconciliation bill not later than May 8, 2003, 
that consists of changes in laws within its jurisdiction 
sufficient to reduce revenues by not more than $535,000,000,000 
for the period of fiscal years 2003 through 2013 and increase 
the total level of outlays by not more than $15,000,000,000 for 
the period of fiscal years 2003 through 2013.
      (b) In the Senate.--The Senate Committee on Finance shall 
report a reconciliation bill not later than May 8, 2003, that 
consists of changes in laws within its jurisdiction sufficient 
to reduce revenues by not more than $522,524,000,000 and 
increase the total level of outlays by not more than 
$27,476,000,000 for the period of fiscal years 2003 through 
2013.

SEC. 202. LIMIT ON SENATE CONSIDERATION OF RECONCILIATION.

      (a) Point of Order.--It shall not be in order for the 
Senate to consider a bill reported pursuant to section 201, or 
an amendment thereto, which would cause the total revenue 
reduction to exceed $322,524,000,000 or the total outlay 
increase to exceed $27,476,000,000 for the period of fiscal 
years 2003 through 2013, except for the purpose of inserting 
the text of a Senate-passed measure and requesting a conference 
with the House of Representatives.
      (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.--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 the point of 
order raised under this section.

      TITLE III--SUBMISSIONS TO ELIMINATE WASTE, FRAUD, AND ABUSE

SEC. 301. SUBMISSIONS OF FINDINGS PROVIDING FOR THE ELIMINATION OF 
                    WASTE, FRAUD, AND ABUSE IN MANDATORY PROGRAMS.

      (a) Findings and Purpose.--The Congress finds that--
            (1) the Inspector General of the Department of 
        Education has found that nearly 23 percent of 
        recipients whose loans were discharged due to 
        disability claims were gainfully employed;
            (2) based on data provided by the Office of 
        Management and Budget, it is estimated that more than 
        $8 billion in erroneous earned income tax payments are 
        made each year;
            (3) the Office of Management and Budget estimates 
        that erroneous payments for food stamps account for 
        almost 9 percent of total benefits;
            (4) mismanagement of more than $3 billion in trust 
        funds controlled by the Bureau of Indian Affairs led 
        the Congress to take extraordinary measures to regain 
        control of these funds;
            (5) in its semiannual reports to Congress, the 
        Inspector General of the Office of Personnel Management 
        has documented numerous instances of the Government 
        continuing to make electronic payments for retirement 
        benefits through the Civil Service Retirement System 
        after the death of the eligible annuitants; and
            (6) numerous other examples of waste, fraud, and 
        abuse are reported regularly by government watchdog 
        agencies.
      (b) Submissions Providing for the Elimination of Waste, 
Fraud, and Abuse in Mandatory Programs.--Not later than 
September 2, 2003, the House committees named in subsection (c) 
and the Senate committees named in subsection (d) shall submit 
findings that identify changes in law within their 
jurisdictions that would achieve the specified level of savings 
through the elimination of waste, fraud, and abuse. After 
receiving those recommendations, the Committees on the Budget 
may use them in the development of future concurrent 
resolutions on the budget. For purposes of this subsection, the 
specified level of savings for each committee shall be inserted 
in the Congressional Record by the chairmen of the Committee on 
the Budget by May 16, 2003.
      (c) House Committees.--The following committees of the 
House of Representatives shall submit findings to the House 
Committee on the Budget pursuant to subsection (b): the 
Committee on Agriculture, the Committee on Armed Services, the 
Committee on Education and the Workforce, the Committee on 
Energy and Commerce, the Committee on Financial Services, the 
Committee on Government Reform, the Committee on House 
Administration, the Committee on International Relations, the 
Committee on the Judiciary, the Committee on Resources, the 
Committee on Science, the Committee on Small Business, the 
Committee on Transportation and Infrastructure, the Committee 
on Veterans' Affairs, and the Committee on Ways and Means.
      (d) Senate Committees.--The following committees of the 
Senate shall submit their findings to the Senate Committee on 
the Budget pursuant to subsection (b): the Committee on 
Agriculture, Nutrition, and Forestry, the Committee on Armed 
Services, the Committee Banking, Housing, and Urban Affairs, 
the Committee Commerce, Science, and Transportation, the 
Committee on Energy and Natural Resources, the Committee on 
Environment and Public Works, the Committee on Finance, the 
Committee on Foreign Relations, the Committee on Governmental 
Affairs, the Committee on Health, Education, Labor, and 
Pensions, the Committee on the Judiciary, and the Committee on 
Veterans' Affairs.
      (e) GAO Report.--By August 1, 2003, the Comptroller 
General shall submit to the Committees on the Budget a 
comprehensive report identifying instances in which the 
committees of jurisdiction may make legislative changes to 
improve the economy, efficiency, and effectiveness of programs 
within their jurisdiction.

           TITLE IV--RESERVE FUNDS AND CONTINGENCY PROCEDURE

 Subtitle A--Reserve Funds for Legislation Assumed in Budget Aggregates

SEC. 401. RESERVE FUND FOR MEDICARE MODERNIZATION AND PRESCRIPTION 
                    DRUGS.

      (a) In the House.--(1) In the House, if the Committee on 
Ways and Means or the Committee on Energy and Commerce reports 
a bill or joint resolution, or if an amendment thereto is 
offered or a conference report thereon is submitted, that 
provides a prescription drug benefit and modernizes medicare, 
and provides adjustments to the medicare program on a fee-for-
service, capitated, or other basis, the chairman of the 
Committee on the Budget may revise the appropriate allocations 
described in paragraph (3) for such committees and other 
appropriate levels in this resolution by the amount provided by 
that measure for that purpose, but not to exceed $7,000,000,000 
in new budget authority and $7,000,000,000 in outlays for 
fiscal year 2004 and $400,000,000,000 in new budget authority 
and $400,000,000,000 in outlays for the period of fiscal years 
2004 through 2013.
      (2) After the consideration of any measure for which an 
adjustment is made pursuant to paragraph (1), the chairman of 
the Committee on the Budget shall make any further appropriate 
adjustments in allocations and budget aggregates.
      (3) In the House, there shall be a separate section 
302(a) allocation to the appropriate committees for medicare. 
For purposes of enforcing such separate allocation under 
section 302(f) of the Congressional Budget Act of 1974, the 
``first fiscal year'' and the ``total of fiscal years'' shall 
be deemed to refer to fiscal year 2004 and the total of fiscal 
years 2004 through 2013 included in the joint explanatory 
statement of managers accompanying this resolution, 
respectively. Such separate allocation shall be the exclusive 
allocation for medicare under section 302(a) of such Act.
      (b) In the Senate.--If the Committee on Finance of the 
Senate reports a bill or joint resolution, or an amendment is 
offered thereto or a conference report thereon is submitted, 
that strengthens and enhances the Medicare Program under title 
XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) and 
improves the access of beneficiaries under that program to 
prescription drugs or promotes geographic equity payments, the 
chairman of the Committee on the Budget, may revise appropriate 
budgetary aggregates and committee allocations of new budget 
authority and outlays provided by that measure for that 
purpose, but not to exceed $7,000,000,000 for fiscal year 2004 
and $400,000,000,000 for the period of fiscal years 2004 
through 2013.

SEC. 402. RESERVE FUND FOR MEDICAID REFORM.

      If the Committee on Energy and Commerce of the House or 
the Committee on Finance of the Senate reports a bill or joint 
resolution, or if an amendment thereto is offered or a 
conference report thereon is submitted, that modernizes 
medicaid, the appropriate chairman of the Committee on the 
Budget may revise appropriate budgetary aggregates and 
committee allocations of new budget authority and outlays 
provided by that measure for that purpose, but not to exceed 
$3,258,000,000 in new budget authority and outlays for fiscal 
year 2004, $8,944,000,000 in new budget authority and outlays 
for the period of fiscal years 2004 through 2008, and 
$12,782,000,000 in budget authority and outlays for the period 
of fiscal years 2004 through 2010, if the legislation would not 
increase the deficit over the period of fiscal years 2004 
through 2013.

SEC. 403. RESERVE FUND FOR STATE CHILDREN'S HEALTH INSURANCE PROGRAM.

      If the Committee on Energy and Commerce of the House or 
the Committee on Finance of the Senate reports a bill or joint 
resolution, or if an amendment thereto is offered or a 
conference report thereon is submitted, that extends the 
availability of fiscal year 1998 and 1999 expired State 
Children's Health Insurance Program allotments and the expiring 
fiscal year 2000 allotments, the appropriate chairman of the 
Committee on the Budget may revise appropriate budgetary 
aggregates and committee allocations of new budget authority 
and outlays by the amount provided by that measure for that 
purpose, but not to exceed $1,260,000,000 in new budget 
authority and $85,000,000 in outlays for fiscal year 2003, 
$1,330,000,000 in new budget authority and $85,000,000 in 
outlays for fiscal year 2004, $690,000,000 in new budget 
authority and $760,000,000 in outlays for the period of fiscal 
years 2004 through 2008, and $565,000,000 in new budget 
authority and $890,000,000 in outlays for the period of fiscal 
years 2004 through 2013.

SEC. 404. RESERVE FUND FOR PROJECT BIOSHIELD.

      (a) In the House.--In the House, if the appropriate 
committee of jurisdiction reports a bill or joint resolution, 
or if an amendment thereto is offered or a conference report 
thereon is submitted, that establishes a program to accelerate 
the research, development, and purchase of biomedical threat 
countermeasures and--
            (1) such measure provides new budget authority to 
        carry out such program; or
            (2) such measure authorizes discretionary new 
        budget authority to carry out such program and the 
        Committee on Appropriations reports a bill or joint 
        resolution that provides new budget authority to carry 
        out such program,
the chairman of the Committee on the Budget may revise the 
allocations for the committee providing such new budget 
authority, and other appropriate levels in this resolution, by 
the amount provided for that purpose, but, in the case of a 
measure described in paragraph (1), not to exceed $890,000,000 
in new budget authority for fiscal year 2004 and outlays 
flowing therefrom and $3,418,000,000 in new budget authority 
for the period of fiscal years 2004 through 2008 and outlays 
flowing therefrom or, in the case of a measure described in 
paragraph (2), not to exceed $890,000,000 in new budget 
authority for fiscal year 2004 and outlays flowing therefrom. 
Notwithstanding the preceding sentence, the total such revision 
for fiscal year 2004 may not exceed $890,000,000 in new budget 
authority and outlays flowing therefrom.
      (b) In the Senate.--In the Senate, if the Committee on 
Health, Education, Labor, and Pensions reports a bill or joint 
resolution, or if an amendment thereto is offered or a 
conference report thereon is submitted, that provides for the 
Department of Homeland Security to procure countermeasures 
necessary to protect the public health from current and 
emerging threats of chemical, biological, radiological, or 
nuclear agents for inclusion by the Secretary of Health and 
Human Services in the Strategic National Stockpile, the 
chairman of the Committee on the Budget may revise appropriate 
budgetary aggregates and committee allocations of new budget 
authority and outlays provided by that measure for that 
purpose, but not to exceed $890,000,000 in new budget authority 
and $575,000,000 in outlays for fiscal year 2004, and 
$5,593,000,000 in new budget authority and $5,593,000,000 in 
outlays for the period of fiscal years 2004 through 2013.

SEC. 405. RESERVE FUND FOR HEALTH INSURANCE FOR THE UNINSURED.

      If the committee of jurisdiction in the House or the 
Committee on Finance 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 for 
the uninsured (including a measure providing for tax deductions 
for the purchase of health insurance for, among others, 
moderate income individuals not receiving health insurance from 
their employers), the appropriate chairman of the Committee on 
the Budget may revise allocations of new budget authority and 
outlays, the revenue aggregates, and other appropriate 
aggregates by the amount provided by that measure for that 
purpose, but not to exceed $28,457,000,000 for the period of 
fiscal years 2004 through 2008 and $49,965,000,000 for the 
period of fiscal years 2004 through 2013.

SEC. 406. RESERVE FUND FOR CHILDREN WITH SPECIAL NEEDS.

      If the Committee on Energy and Commerce of the House or 
the Committee on Finance 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 States 
with the option to expand Medicaid coverage for children with 
special needs, allowing families of disabled children to 
purchase coverage under the Medicaid Program for such children, 
the appropriate chairman of the Committee on the Budget may 
revise committee allocations for that committee and other 
appropriate budgetary aggregates and allocations of new budget 
authority and outlays by the amount provided by that measure 
for that purpose, but not to exceed $43,000,000 in new budget 
authority and $42,000,000 in outlays for fiscal year 2004, 
$1,627,000,000 in new budget authority and $1,566,000,000 in 
outlays for the period of fiscal years 2004 through 2008, and 
$7,462,000,000 in new budget authority and $7,261,000,000 in 
outlays for the period of fiscal years 2004 through 2013.

                   Subtitle B--Contingency Procedure

SEC. 411. CONTINGENCY PROCEDURE 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 sections 
250(c)(4)(B) and (C) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 in excess of the following amounts:
            (1) for fiscal year 2004: $41,740,000,000,
            (2) for fiscal year 2005: $42,743,000,000,
            (3) for fiscal year 2006: $43,721,000,000,
            (4) for fiscal year 2007: $45,795,000,000,
            (5) for fiscal year 2008: $47,031,000,000, or
            (6) for fiscal year 2009: $47,818,000,000,
the chairman of the appropriate Committee on the Budget may 
adjust the appropriate budget aggregates and increase the 
allocation of new budget authority to such committee for fiscal 
year 2004 and for the period of fiscal years 2004 through 2008 
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 must be reported from the 
Committee on Finance.
      (b) Adjustment for Outlays.--(1) For fiscal year 2004, in 
the House and in 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 
$39,684,000,000 for fiscal year 2004, for programs, projects, 
and activities within the highway and transit categories as 
defined in sections 250(c)(4)(B) and (C) 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).
      (2) For fiscal year 2005, in 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 $40,788,000,000 for fiscal year 2005, for 
programs, projects, and activities within the highway and 
transit categories as defined in sections 250(c)(4)(B) and (C) 
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 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).
      (c) Statement of Intent.--It is the intent of Congress 
that the increase in new budget authority and outlays above the 
baseline assumed for highways and highway safety in section 103 
of this resolution is derived from the resources available to 
the Highway Trust Fund.

           Subtitle C--Adjustments to Fiscal Year 2003 Levels

SEC. 421. SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2003.

      If legislation making supplemental appropriations for 
fiscal year 2003 is enacted before May 1, 2003, the appropriate 
chairman of the Committee on the Budget shall make the 
appropriate adjustments in the appropriate allocations and 
aggregates of new budget authority and outlays to reflect the 
difference between such measure and the corresponding levels 
assumed in this resolution.

                      TITLE V--BUDGET ENFORCEMENT

SEC. 501. RESTRICTIONS ON ADVANCE APPROPRIATIONS.

      (a) In the House.--(1)(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) In the House, an advance appropriation may be 
provided for fiscal year 2005 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 2006 for any program identified in such 
statement under the heading ``Accounts Identified for Advance 
Appropriations, Part B''.
      (3) 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 2004 that first 
becomes available for any fiscal year after 2004.
      (b) In the Senate.--(1) 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) An advance appropriation may be provided for fiscal 
years 2005 and 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 in each year.
      (3)(A) 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) 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) 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) 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 2004 that first becomes 
available for any fiscal year after 2004 or making general 
appropriations or continuing appropriations for fiscal year 
2005 that first becomes available for any fiscal year after 
2005.

SEC. 502. EMERGENCY LEGISLATION.

    (a) Purpose.--It is the purpose of this section, in the 
absence of an extension of the discretionary spending limits 
and PAYGO requirements under the Balanced Budget and Emergency 
Deficit Control Act of 1985, to enable the Congress to 
designate provisions of legislation as an emergency in order to 
exempt such measures from enforcement of this resolution with 
respect to the new budget authority, outlays, and receipts 
resulting from such provisions.
    (b) In the House.--
            (1) Exemption of emergency provisions.--In the 
        House, any new budget authority, new entitlement 
        authority, outlays, and receipts resulting from any 
        provision designated in that provision as an emergency 
        requirement, pursuant to this section, in any bill, 
        joint resolution, amendment, or conference report shall 
        not count for purposes of sections 302, 303, 311, and 
        401 of the Congressional Budget Act of 1974.
            (2) Designations.--
                    (A) Guidance.--In the House, if a provision 
                of legislation is designated as an emergency 
                requirement under this section, the committee 
                report and any 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 
                        situation addressed by such provision 
                        is--
                                    (I) necessary, essential, 
                                or vital (not merely useful or 
                                beneficial);
                                    (II) sudden, quickly coming 
                                into being, and not building up 
                                over time;
                                    (III) an urgent, pressing, 
                                and compelling need requiring 
                                immediate action;
                                    (IV) subject to clause 
                                (ii), unforeseen, 
                                unpredictable, and 
                                unanticipated; and
                                    (V) 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.
      (c) In the Senate.--
            (1) Authority to designate.--In the Senate, with 
        respect to a provision of direct spending or receipts 
        legislation or appropriations for discretionary 
        accounts that the President designates as an emergency 
        requirement and that the Congress so designates in such 
        measure, the amounts of new budget authority, outlays, 
        and receipts in all fiscal years resulting from that 
        provision shall be treated as an emergency requirement 
        for the purpose of this section.
            (2) Exemption of emergency provisions.--In the 
        Senate, any new budget authority, outlays, and receipts 
        resulting from any provision designated as an emergency 
        requirement, pursuant to this section, in any bill, 
        joint resolution, amendment, or conference report shall 
        not count for purposes of sections 302, 303, 311, and 
        401 of the Congressional Budget Act of 1974 and 
        sections 504 (relating to discretionary spending limits 
        in the Senate) and 505 (relating to the paygo 
        requirement in the Senate) of this resolution.
            (3) Designations.--
                    (A) Guidance.--In the Senate, if a 
                provision of legislation is designated as an 
                emergency requirement under this section, the 
                committee report and any statement of managers 
                accompanying that legislation shall include an 
                explanation of the manner in which the 
                provision meets the criteria in subparagraph 
                (B).
                    (B) Criteria.--
                            (i) In general.--Any such provision 
                        is an emergency requirement if the 
                        situation addressed by such provision 
                        is--
                                    (I) necessary, essential, 
                                or vital (not merely useful or 
                                beneficial);
                                    (II) sudden, quickly coming 
                                into being, and not building up 
                                over time;
                                    (III) an urgent, pressing, 
                                and compelling need requiring 
                                immediate action;
                                    (IV) subject to clause 
                                (ii), unforeseen, 
                                unpredictable, and 
                                unanticipated; and
                                    (V) 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.
                    (4) 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.
                    (5) 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.
                    (6) Waiver and appeal.--Paragraph (5) 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.
                    (7) Definition of an emergency 
                designation.--For purposes of paragraph (5), a 
                provision shall be considered an emergency 
                designation if it designates any item as an 
                emergency requirement pursuant to this section.
                    (8) Form of the point of order.--A point of 
                order under paragraph (5) may be raised by a 
                Senator as provided in section 313(e) of the 
                Congressional Budget Act of 1974.
                    (9) Conference reports.--If a point of 
                order is sustained under paragraph (5) against 
                a conference report, the report shall be 
                disposed of as provided in section 313(d) of 
                the Congressional Budget Act of 1974.
                    (10) Exception for defense spending.--
                Paragraph (5) shall not apply against an 
                emergency designation for a provision making 
                discretionary appropriations in the defense 
                category.

SEC. 503. EXTENSION OF SUPERMAJORITY ENFORCEMENT.

      (a) In General.--Notwithstanding any provision of the 
Congressional Budget Act of 1974, subsections (c)(2) and (d)(3) 
of section 904 of the Congressional Budget Act of 1974 shall 
remain in effect for purposes of Senate enforcement through 
September 30, 2008.
      (b) Repeal.--Senate Resolution 304, agreed to October 16, 
2002 (107th Congress), is repealed.

SEC. 504. 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--
            (1) for fiscal year 2003--
                    (A) $839,118,000,000 in new budget 
                authority and $805,146,000,000 in outlays for 
                the discretionary category;
                    (B) for the highway category, 
                $31,264,000,000 in outlays; and
                    (C) for the mass transit category, 
                $1,436,000,000 in new budget authority, and 
                $6,551,000,000 in outlays;
            (2) for fiscal year 2004--
                    (A) $782,999,000,000 in new budget 
                authority and $822,563,000,000 in outlays for 
                the discretionary category;
                    (B) for the highway category, 
                $31,555,000,000 in outlays; and
                    (C) for the mass transit category, 
                $1,461,000,000 in new budget authority, and 
                $6,634,000,000 in outlays; and
            (3) for fiscal year 2005--
                    (A) $812,598,000,000 in new budget 
                authority, and $817,883,000,000 in outlays for 
                the discretionary category;
                    (B) for the highway category, 
                $33,393,000,000 in outlays; and
                    (C) for the mass transit category 
                $1,488,000,000 in new budget authority, and 
                $6,726,000,000 in outlays;
as adjusted in conformance with subsection (c).
      (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 resolution (or amendment, 
        motion, or conference report on that bill or 
        resolution) 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 411; and
                    (B) an amount provided for the fiscal year 
                2003 supplemental appropriation pursuant to 
                section 421.
            (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.

SEC. 505. 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; or
                    (B) any provision of legislation that 
                affects the full funding of, and continuation 
                of, the deposit insurance guarantee commitment 
                in effect on the date of enactment of the 
                Budget Enforcement Act of 1990.
            (5) Baseline.--Estimates prepared pursuant to this 
        section shall--
                    (A) use the baseline surplus or deficit 
                used for the most recently adopted concurrent 
                resolution on the budget as adjusted for any 
                changes in revenues or direct spending assumed 
                by such resolution; 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) Sunset.--This section shall expire on September 30, 
2008.

SEC. 506. 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, except as provided by 
section 401(a), 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.

SEC. 507. 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) Enforcement in the House.--In the House, for the 
purpose of enforcing this concurrent resolution, sections 
302(f) and 311(a) of the Congressional Budget Act of 1974 shall 
apply to fiscal year 2004 and the total for fiscal year 2004 
and the four ensuing fiscal years.

SEC. 508. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND DEFINITIONS.

      In the House or in the Senate, upon the enactment of a 
bill or joint resolution providing for a change in concepts or 
definitions, the appropriate 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).

                     TITLE VI--SENSE OF THE SENATE

SEC. 601. SENSE OF THE SENATE ON FEDERAL EMPLOYEE PAY.

      It is the sense of the Senate that rates of compensation 
for civilian employees of the United States should be adjusted 
at the same time, and in the same proportion, as are rates of 
compensation for members of the uniformed services.

SEC. 602. SENSE OF THE SENATE REGARDING PELL GRANTS.

      It is the sense of the Senate that the levels in this 
resolution assume that within the discretionary allocation 
provided to the Committee on Appropriations the maximum Pell 
Grant award should be raised to the maximum extent practicable.

SEC. 603. SENSE OF THE SENATE ON EMERGENCY AND DISASTER ASSISTANCE FOR 
                    LIVESTOCK AND AGRICULTURE PRODUCERS.

      It is the sense of the Senate that the Senate develop a 
long-term drought plan that effectively recognizes the 
recurring nature of drought cycles and adequately supports 
emergency and disaster assistance to livestock and agricultural 
producers hurt by drought and that the Senate establish an 
agricultural reserve to fund these activities.

SEC. 604. SOCIAL SECURITY RESTRUCTURING.

      It is the sense of the Senate that--
            (1) the President, the Congress and the American 
        people (including seniors, workers, women, minorities, 
        and disabled persons) should work together at the 
        earliest opportunity to enact legislation to achieve a 
        solvent and permanently sustainable Social Security 
        system; and
            (2) Social Security reform must--
                    (A) protect current and near retirees from 
                any changes to Social Security benefits;
                    (B) reduce the pressure on future taxpayers 
                and on other budgetary priorities;
                    (C) provide benefit levels that adequately 
                reflect individual contributions to the Social 
                Security System; and
                    (D) preserve and strengthen the safety net 
                for vulnerable populations, including the 
                disabled and survivors.

SEC. 605. SENSE OF THE SENATE CONCERNING STATE FISCAL RELIEF.

      It is the Sense of the Senate that the functional totals 
in this resolution assume that any legislation enacted to 
provide economic growth for the United States should include 
not less than $30,000,000,000 for State fiscal relief over the 
next 18 months (of which at least half should be provided 
through a temporary increase in the Federal medical assistance 
percentage (FMAP)).

SEC. 606. FEDERAL AGENCY REVIEW COMMISSION.

      It is the sense of the Senate that a commission should be 
established to review Federal domestic agencies, and programs 
within such agencies, with the express purpose of providing 
Congress with recommendations, and legislation to implement 
those recommendations, to realign or eliminate government 
agencies and programs that are duplicative, wasteful, 
inefficient, outdated, or irrelevant, or have failed to 
accomplish their intended purpose.

SEC. 607. SENSE OF THE SENATE REGARDING HIGHWAY SPENDING.

      (a) Findings.--The Senate makes the following findings:
            (1) Highway construction funding should increase 
        over current levels.
            (2) The Senate Budget Committee-passed budget 
        resolution increases highway funding above the 
        President's request.
            (3) All vehicles, whether they are operated by 
        gasoline, gasohol, or electricity, do damage to our 
        highways.
            (4) As set out in TEA-21, the direct relationship 
        between excise taxes and highway spending makes sense 
        and should be maintained.
            (5) Highways should be funded through user fees 
        such as excise taxes and not through the General Fund 
        of the Treasury.
      (b) Sense of the Senate.--It is the sense of the Senate 
that the Senate should only consider legislation that increases 
highway spending if such legislation changes highway user fees 
to pay for such increased spending.

SEC. 608. SENSE OF THE SENATE ON REPORTS ON LIABILITIES AND FUTURE 
                    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--
            (1) an estimate of the unfunded liabilities of the 
        Federal Government;
            (2) an estimate of the contingent liabilities of 
        Federal programs; and
            (3) an accrual-based estimate of the current and 
        future costs of Federal programs.

SEC. 609. SENSE OF THE SENATE CONCERNING AN EXPANSION IN HEALTH CARE 
                    COVERAGE.

      It is the sense of the Senate that the functional totals 
in this resolution assume that--
            (1) expanded access to health care coverage 
        throughout the United States is a top priority for 
        national policymaking; and
            (2) to the extent that additional funds are made 
        available, a significant portion of such funds should 
        be dedicated to expanding access to health care 
        coverage so that fewer individuals are uninsured and 
        fewer individuals are likely to become uninsured.

SEC. 610. SENSE OF THE SENATE CONCERNING PROGRAMS OF THE CORPS OF 
                    ENGINEERS.

      It is the sense of the Senate that the Corps of Engineers 
requires additional funding to perform its vital functions and 
the budgetary totals in this resolution assume that the level 
of funding provided for programs of the Corps will not be 
reduced below current baseline spending levels.

SEC. 611. SENSE OF THE SENATE CONCERNING NATIVE AMERICAN HEALTH.

      It is the sense of the Senate that Congress has 
recognized the importance of Native American health. In 1997, 
Congress enacted a program to spend $30,000,000 a year on 
research and treatment on diabetes in the Native American 
community. This amount was increased to $100,000,000 a year in 
2000 and further increased to $150,000,000 a year in 2002. This 
is a 500 percent increase since 1997. This priority focuses on 
prevention and treatment for a major disease in the Native 
American community.

SEC. 612. SENSE OF THE SENATE ON PROVIDING TAX AND OTHER INCENTIVES TO 
                    REVITALIZE RURAL AMERICA.

      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. 613. SENSE OF THE SENATE CONCERNING CHILDREN'S GRADUATE MEDICAL 
                    EDUCATION.

      It is the sense of the Senate that, for fiscal year 2004, 
children's graduate medical education should be funded at 
$305,000,000.

SEC. 614. SENSE OF THE SENATE ON FUNDING FOR CRIMINAL JUSTICE.

      It is the sense of the Senate that the funding levels in 
this resolution assume that the programs authorized under the 
Crime Identification Technology Act of 1998 to improve the 
justice system will be fully funded at the levels authorized 
for each of the fiscal years 2004 through 2007.

SEC. 615. SENSE OF THE SENATE CONCERNING FUNDING FOR DRUG TREATMENT 
                    PROGRAMS.

      It is the sense of the Senate that the functional totals 
in this resolution assume that up to $20,000,000 from funds 
designated, but not obligated, for travel and administrative 
expenses, from drug interdiction activities should be used for 
service-oriented targeted grants for the utilization of 
substances that block the craving for heroin and that are newly 
approved for such use by the Food and Drug Administration.

SEC. 616. SENSE OF SENATE CONCERNING FREE TRADE AGREEMENT WITH THE 
                    UNITED KINGDOM.

      It is the sense of the Senate that the President should 
negotiate a free trade agreement with the United Kingdom.
      And the Senate agree to the same.

                                   Jim Nussle,
                                   Christopher Shays,
                                 Managers on the Part of the House.

                                   Don Nickles,
                                   Pete V. 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 disagreeing votes of the two Houses on the 
amendment of the Senate to the concurrent resolution (H. Con. 
Res. 95), establishing the congressional budget for the United 
States Government for fiscal year 2004 and setting forth 
appropriate budgetary levels for fiscal years 2003 through 2005 
through 2013, submit the following joint statement to the House 
and the Senate in explanation of the effect of the action 
agreed upon by the managers and recommended in the accompanying 
conference report:
      The Senate amendment struck all out of the House bill 
after the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment that is a substitute for the 
House bill and the Senate amendment. The differences between 
the House bill, the Senate 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 indicated.
House Resolution
      The House budget resolution includes all of the items 
required as part of a concurrent budget resolution under 
section 301(a) of the Congressional Budget Act other than the 
spending and revenue levels for Social Security (which is used 
to enforce a point of order applicable only in the Senate).
Senate Amendment
      The Senate amendment includes all of the items required 
under section 301(a) of the Congressional Budget Act. As 
permitted under section 301(b) of the Congressional Budget Act, 
Section 101(6) of the Senate amendment includes advisory levels 
on debt held by the public.
Conference Agreement
      The Conference Agreement includes all of the items 
required by section 301(a) of the Congressional Budget Act.

                     AGGREGATE AND FUNCTION LEVELS

      The following tables are included in this section:

Conference Report on the Fiscal Year 2004 Budget Resolution: 
        Total Spending and Revenues
Conference Report on the Fiscal Year 2004 Budget Resolution: 
        Discretionary Spending
Conference Report on the Fiscal Year 2004 Budget Resolution: 
        Mandatory Spending
House-Passed Fiscal Year 2004 Budget Resolution: Total Spending 
        and Revenues
House-Passed Fiscal Year 2004 Budget Resolution: Discretionary 
        Spending
House Passed Fiscal Year 2004 Budget Resolution: Mandatory 
        Spending
Senate-Passed Fiscal Year 2004 Amendment: Aggregate and 
        Function Levels

                                                    CONFERENCE REPORT ON THE FISCAL YEAR 2004 BUDGET RESOLUTION: TOTAL SPENDING AND REVENUES
                                                                                      [Dollars in billions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal Year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013        2004-08       2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
  BA............................   2,231.122   2,247.860   2,387.012   2,529.740   2,652.819   2,782.789   2,905.038   3,024.490   3,156.932   3,264.724   3,412.316    12,600.220    28,363.720
  OT............................   2,181.910   2,268.230   2,375.351   2,493.643   2,607.179   2,737.405   2,866.279   2,992.306   3,133.830   3,229.310   3,386.854    12,481.808    28,090.387
On-Budget:
  BA............................   1,862.613   1,861.004   1,990.236   2,122.301   2,232.829   2,348.872   2,454.439   2,555.612   2,669.462   2,754.007   2,875.121    10,555.242    23,863.883
  OT............................   1,815.395   1,883.834   1,981.402   2,089.299   2,190.576   2,307.259   2,419.846   2,527.898   2,651.220   2,723.935   2,855.491    10,452.370    23,630.760
Off-Budget:
  BA............................     368.509     386.856     396.776     407.439     419.990     433.917     450.599     468.878     487.470     510.717     537.195     2,044.978     4,499.837
  OT............................     366.515     384.396     393.949     404.344     416.603     430.146     446.433     464.408     482.610     505.375     531.363     2,029.438     4,459.627
Revenues
  Total.........................   1,834.718   1,883.273   2,081.650   2,276.573   2,441.399   2,586.273   2,772.894   2,923.691   3,062.692   3,239.140   3,423.675    11,269.168    26,691.260
  On-budget.....................   1,303.111   1,325.452   1,493.875   1,657.511   1,790.251   1,901.844   2,053.762   2,167.937   2,270.540   2,409.572   2,553.985     8,168.933    19,624.729
  Off-budget....................     531.607     557.821     587.775     619.062     651.148     684.429     719.132     755.754     792.152     829.568     869.690     3,100.235     7,066.531
Surplus/Deficit (-):
  Total.........................    -347.192    -384.957    -293.701    -217.070    -165.780    -151.132     -93.385     -68.615     -71.138       9.830      36.821    -1,212.640    -1,399.127
  On-budget.....................    -512.284    -558.382    -487.527    -431.788    -400.325    -405.415    -366.084    -359.961    -380.680    -314.363    -301.506    -2,283.437    -4,006.031
  Off-budget....................     165.092     173.425     193.826     214.718     234.545     254.283     272.699     291.346     309.542     324.193     338.327     1,070.797     2,606.904
Debt Held by the Public (end of        3,917       4,299       4,599       4,829       5,007       5,169       5,272       5,349       5,428       5,424       5,394            na            na
 year)..........................
Debt Subject to Limit (end of          6,747       7,384       7,978       8,534       9,064       9,602      10,102      10,601      11,125      11,588      12,040            na            na
 year)..........................

                                                                                           BY FUNCTION
National Defense (050):
  BA............................     392.494     400.546     420.071     440.185     460.435     480.886     491.951     502.301     511.859     520.553     529.428     2,202.123     4,758.215
  OT............................     386.229     400.916     414.237     426.011     438.656     462.861     479.249     493.195     508.131     510.509     524.494     2,142.681     4,658.259
International Affairs (150):
  BA............................      22.506      25.681      29.734      32.308      33.603      34.611      35.413      36.258      37.136      38.005      38.885       155.937       341.634
  OT............................      19.283      24.207      24.917      26.539      28.464      29.604      30.733      31.689      32.565      33.408      34.298       133.731       296.424
General Science, Space, and Technology (250):
  BA............................      23.153      23.927      24.433      25.217      26.055      26.832      27.462      28.121      28.805      29.492      30.185       126.464       270.529
  OT............................      21.556      22.799      23.861      24.485      25.221      25.948      26.639      27.296      27.963      28.639      29.319       122.314       262.170
Energy (270):
  BA............................       2.074       2.634       2.797       2.714       2.540       3.080       3.090       3.194       3.296       3.408       3.520        13.765        30.273
  OT............................       0.439       0.873       0.947       1.272       1.069       1.419       1.686       1.794       1.976       2.357       2.326         5.580        15.719
Natural Resources and Environment (300):
  BA............................      30.816      31.623      32.504      32.962      33.386      34.064      35.183      36.021      36.829      37.529      38.214       164.539       348.315
  OT............................      28.940      30.782      31.654      32.830      33.127      33.527      34.544      35.360      36.163      36.836      37.600       161.920       342.423
Agriculture (350):
  BA............................      24.418      24.583      27.003      26.828      26.299      25.507      26.092      25.545      24.991      24.573      24.297       130.220       255.718
  OT............................      23.365      23.656      25.763      25.593      25.107      24.381      25.128      24.716      24.180      23.778      23.498       124.500       245.800
Commerce and Housing Credit (370):
  BA............................       5.212       7.316       8.243       5.802       5.455       5.211       4.751       4.278       3.871       3.716       3.369        32.027        52.012
  OT............................       2.281       3.374       3.550       0.638      -0.520      -1.289      -1.756      -2.591      -3.581      -4.131      -4.438         5.753       -10.744
On-budget:
  BA............................       8.812       7.516       8.743       8.280       8.626       8.743       8.526       8.407       8.386       8.489       8.563        41.908        84.279
  OT............................       5.881       3.574       4.050       3.116       2.651       2.243       2.019       1.538       0.934       0.642       0.756        15.634        21.523
Off-budget:
  BA............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
  OT............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
Transportation (400):
  BA............................      64.091      69.506      70.489      72.496      75.278      76.927      78.878      77.747      78.624      79.527      80.466       364.696       759.938
  OT............................      67.847      69.869      69.442      70.191      71.786      73.659      75.632      77.233      78.291      79.317      80.346       354.947       745.766
Community and Regional Development (450):
  BA............................      12.251      14.063      14.138      14.321      14.536      14.745      14.980      15.233      15.492      15.755      16.023        71.803       149.286
  OT............................      15.994      15.823      15.872      14.961      14.664      14.123      14.298      14.501      14.750      14.992      15.259        75.443       149.243
Education, Training, Employment and Social Services (500):
  BA............................      82.699      90.035      91.442      93.428      95.569      97.925      99.813     101.551     103.529     105.790     107.265       468.399       986.347
  OT............................      81.455      84.205      87.020      90.541      92.986      95.118      97.440      99.289     101.117     102.985     104.934       449.870       955.635
Health (550):
  BA............................     222.913     240.554     259.701     279.236     299.614     322.061     345.548     370.626     396.818     415.790     445.484     1,401.166     3,375.432
  OT............................     217.881     238.785     259.403     279.024     298.681     320.731     344.059     369.097     395.280     414.384     444.082     1,396.624     3,363.526
Medicare (570):
  BA............................     248.586     266.018     282.682     321.623     343.717     369.244     395.368     423.288     453.285     485.951     526.553     1,583.284     3,867.729
  OT............................     248.434     266.283     285.630     318.384     343.987     369.119     395.107     423.546     456.642     482.125     526.809     1,583.403     3,867.632
Income Security (600):
  BA............................     326.390     319.518     333.821     341.816     349.199     361.697     373.372     384.844     400.266     403.738     418.672     1,706.051     3,686.943
  OT............................     334.177     324.840     337.123     344.292     350.945     362.808     374.083     385.347     400.688     404.146     419.245     1,720.008     3,703.517
Social Security (650):
  BA............................     478.882     501.140     521.499     546.735     575.008     606.071     641.105     679.322     720.505     766.154     816.195     2,750.453     6,373.734
  OT............................     476.888     498.679     518.672     543.640     571.621     602.300     636.939     674.852     715.645     760.812     810.363     2,734.912     6,333.523
On-budget:
  BA............................      13.255      14.294      15.471      16.421      17.919      19.704      21.810      24.283      28.170      31.357      34.347        83.809       223.776
  OT............................      13.255      14.293      15.471      16.421      17.919      19.704      21.810      24.283      28.170      31.357      34.347        83.808       223.775
Off-budget:
  BA............................     465.627     486.846     506.028     530.314     557.089     586.367     619.295     655.039     692.335     734.797     781.848     2,666.644     6,149.958
  OT............................     463.633     484.386     503.201     527.219     553.702     582.596     615.129     650.569     687.475     729.455     776.016     2,651.104     6,109.748
Veterans Benefits and Services (700):
  BA............................      57.597      63.779      67.135      65.397      63.874      67.666      69.279      70.992      75.669      72.618      77.455       327.851       693.864
  OT............................      57.486      63.209      66.553      64.995      63.442      67.398      68.924      70.588      75.249      72.097      76.989       325.597       689.444
Administration of Justice (750):
  BA............................      38.543      37.626      37.946      37.984      38.461      39.477      40.497      41.599      42.889      44.207      45.576       191.494       406.262
  OT............................      37.712      40.788      39.193      38.329      38.252      39.128      40.212      41.299      42.472      43.760      45.120       195.690       408.553
General Government (800):
  BA............................      18.185      20.202      20.635      20.656      21.126      21.236      21.946      22.695      23.458      24.255      25.076       103.855       221.285
  OT............................      18.110      20.066      20.714      20.485      20.876      21.013      21.504      22.212      22.946      23.880      24.520       103.154       218.216
Net Interest (900):
  BA............................     156.067     169.656     212.681     243.313     258.818     269.793     278.541     283.448     288.931     293.336     292.764     1,154.261     2,591.281
  OT............................     156.067     169.656     212.681     243.313     258.818     269.793     278.541     283.448     288.931     293.336     292.764     1,154.261     2,591.281
On-budget:
  BA............................     240.176     259.414     310.630     352.219     380.574     405.647     429.542     450.651     473.381     496.015     514.513     1,708.484     4,072.586
  OT............................     240.176     259.414     310.630     352.219     380.574     405.647     429.542     450.651     473.381     496.015     514.513     1,708.484     4,072.586
Off-budget:
  BA............................     -84.109     -89.758     -97.949    -108.906    -121.756    -135.854    -151.001    -167.203    -184.450    -202.679    -221.749      -554.223    -1,481.305
  OT............................     -84.109     -89.758     -97.949    -108.906    -121.756    -135.854    -151.001    -167.203    -184.450    -202.679    -221.749      -554.223    -1,481.305
Allowances (920):
  BA............................      74.758      -7.621      -6.541      -7.331      -8.947      -9.959     -11.526     -12.888     -16.414     -21.460     -25.618       -40.399      -128.305
  OT............................      38.279      22.346       1.520      -5.930      -8.796      -9.951      -9.978     -10.880     -12.671     -15.707     -19.181        -0.811       -69.228
Undistributed Offsetting Receipts (950):
  BA............................     -50.513     -52.926     -63.401     -65.950     -61.207     -64.285     -66.705     -69.685     -72.907     -78.213     -81.493      -307.769      -676.772
  OT............................     -50.513     -52.926     -63.401     -65.950     -61.207     -64.285     -66.705     -69.685     -72.907     -78.213     -81.493      -307.769      -676.772
On-budget:
  BA............................     -41.104     -42.894     -52.598     -54.459     -49.035     -51.221     -52.785     -54.856     -57.007     -61.585     -63.783      -250.207      -540.223
  OT............................     -41.104     -42.894     -52.598     -54.459     -49.035     -51.221     -52.785     -54.856     -57.007     -61.585     -63.783      -250.207      -540.223
Off-budget:
  BA............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
  OT............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                       CONFERENCE REPORT ON THE FISCAL YEAR 2004 BUDGET RESOLUTION: DISCRETIONARY SPENDING
                                                                                      [Dollars in billions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal Year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013        2004-08       2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
  BA............................     840.554     784.460     814.086     842.470     872.461     903.983     924.775     944.195     962.135     978.491     995.126     4,217.460     9,022.182
  OT............................     842.961     860.752     858.003     870.434     892.160     926.475     955.305     980.114   1,004.818   1,016.239   1,038.931     4,407.824     9,403.231
Defense:
  BA............................     392.137     400.058     419.437     439.507     459.729     480.129     491.172     501.487     511.015     519.702     528.537     2,198.860     4,750.773
  OT............................     386.373     400.561     413.682     425.379     437.995     462.157     478.522     492.435     507.345     509.721     523.668     2,139.774     4,651.465
Nondefense:
  BA............................     448.417     384.402     394.649     402.963     412.732     423.854     433.603     442.708     451.120     458.789     466.589     2,018.600     4,271.409
  OT............................     456.588     460.191     444.321     445.055     454.165     464.318     476.783     487.679     497.473     506.518     515.263     2,268.050     4,751.766

                                                                                           BY FUNCTION
National Defense (050):
  BA............................     392.137     400.058     419.437     439.507     459.729     480.129     491.172     501.487     511.015     519.702     528.537     2,198.860     4,750.773
  OT............................     386.373     400.561     413.682     425.379     437.995     462.157     478.522     492.435     507.345     509.721     523.668     2,139.774     4,651.465
International Affairs (150):
  BA............................      25.407      28.651      30.034      31.579      32.854      33.845      34.630      35.459      36.322      37.176      38.037       156.963       338.587
  OT............................      26.000      26.775      27.522      29.195      31.084      32.119      33.225      34.179      35.072      35.935      36.778       146.695       321.884
General Science, Space, and Technology (250):
  BA............................      23.047      23.897      24.402      25.186      26.023      26.799      27.429      28.087      28.770      29.456      30.149       126.307       270.198
  OT............................      21.457      22.701      23.766      24.421      25.176      25.915      26.607      27.263      27.929      28.605      29.284       121.979       261.667
Energy (270):
  BA............................       3.237       3.672       3.975       3.914       3.902       4.858       4.975       5.096       5.227       5.357       5.489        20.321        46.465
  OT............................       3.151       3.577       3.869       3.971       3.901       4.647       4.911       5.031       5.157       5.286       5.415        19.965        45.765
Natural Resources and Environment (300):
  BA............................      29.238      29.327      29.802      30.097      30.583      31.319      31.998      32.705      33.448      34.196      34.970       151.128       318.445
  OT............................      27.857      29.014      29.554      29.983      30.464      30.965      31.542      32.199      32.899      33.595      34.342       149.980       314.557
Agriculture (350):
  BA............................       5.727       5.243       5.609       5.734       5.876       6.037       6.208       6.386       6.575       6.767       6.962        28.499        61.397
  OT............................       5.852       5.589       5.533       5.613       5.758       5.958       6.128       6.303       6.487       6.679       6.871        28.451        60.919
Commerce and Housing Credit (370):
  BA............................       0.150      -0.496      -0.269      -0.554       0.534       0.878       0.767       0.661       0.534       0.625       0.574         0.093         3.254
  OT............................       0.054       0.092      -0.393      -0.650       0.449       0.686       0.633       0.549       0.414       0.502       0.450         0.184         2.732
On-budget:
  BA............................       0.150      -0.496      -0.269      -0.554       0.534       0.878       0.767       0.661       0.534       0.625       0.574         0.093         3.254
  OT............................       0.054       0.092      -0.393      -0.650       0.449       0.686       0.633       0.549       0.414       0.502       0.450         0.184         2.732
Off-budget:
  BA............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
  OT............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
Transportation (400):
  BA............................      22.611      23.205      23.134      24.192      24.882      25.276      26.393      26.221      27.040      27.875      28.739       120.689       256.957
  OT............................      65.184      67.608      67.257      68.142      69.802      71.732      73.676      75.266      76.289      77.269      78.245       344.541       725.286
Community and Regional Development (450):
  BA............................      11.725      13.826      13.999      14.188      14.401      14.688      14.921      15.168      15.425      15.686      15.950        71.102       148.252
  OT............................      16.054      15.912      15.992      15.124      14.884      14.390      14.602      14.835      15.079      15.313      15.569        76.302       151.700
Education, Training, Employment and Social Services (500):
  BA............................      72.875      80.507      81.005      82.245      84.023      86.086      87.707      89.283      90.924      92.938      94.086       413.866       868.804
  OT............................      71.958      75.206      77.152      80.039      82.172      83.975      86.043      87.652      89.250      90.886      92.523       398.544       844.898
Health (550):
  BA............................      49.468      49.620      50.667      51.800      52.950      54.299      55.607      56.972      58.387      59.806      61.246       259.336       551.354
  OT............................      44.349      47.742      49.376      50.414      51.631      52.576      53.801      55.102      56.460      57.851      59.252       251.739       534.205
Medicare (570):
  BA............................       3.798       3.739       3.807       3.906       4.014       4.138       4.353       4.572       4.809       5.089       5.396        19.604        43.823
  OT............................       3.797       3.726       3.811       3.897       3.992       4.113       4.309       4.524       4.757       5.027       5.327        19.539        43.483
Income Security (600):
  BA............................      44.020      45.712      48.760      50.311      52.004      53.714      55.441      57.295      59.143      61.023      62.884       250.501       546.287
  OT............................      50.781      51.544      52.373      53.424      54.643      56.116      57.505      58.954      60.560      62.215      63.908       268.100       571.242
Social Security (650):
  BA............................       3.833       4.282       4.363       4.450       4.549       4.665       4.820       4.983       5.151       5.323       5.503        22.309        48.089
  OT............................       3.859       4.231       4.326       4.435       4.532       4.644       4.794       4.953       5.121       5.291       5.471        22.168        47.798
On-budget:
  BA............................       0.021       0.025       0.025       0.026       0.027       0.027       0.028       0.029       0.030       0.031       0.032         0.130         0.280
  OT............................       0.021       0.024       0.025       0.026       0.027       0.027       0.028       0.029       0.030       0.031       0.032         0.129         0.279
Off-budget:
  BA............................       3.812       4.257       4.338       4.424       4.522       4.638       4.792       4.954       5.121       5.292       5.471        22.179        47.809
  OT............................       3.838       4.207       4.301       4.409       4.505       4.617       4.766       4.924       5.091       5.260       5.439        22.039        47.519
Veterans Benefits and Services (700):
  BA............................      26.532      29.957      28.386      28.812      29.272      29.838      30.796      31.789      32.824      33.887      35.000       146.265       310.561
  OT............................      26.902      29.600      28.183      28.495      29.024      29.662      30.530      31.497      32.521      33.576      34.663       144.964       307.751
Administration of Justice (750):
  BA............................      36.289      33.529      35.762      36.664      37.621      38.694      39.771      40.931      42.288      43.674      45.117       182.270       394.051
  OT............................      35.484      37.495      36.611      36.824      37.483      38.455      39.596      40.741      41.977      43.331      44.764       186.868       397.277
General Government (800):
  BA............................      15.702      17.352      17.754      17.770      18.191      18.679      19.313      19.988      20.667      21.371      22.105        89.746       193.190
  OT............................      15.570      17.033      17.869      17.658      17.966      18.316      18.859      19.511      20.172      20.864      21.582        88.842       189.830
Allowances (920):
  BA............................      74.758      -7.621      -6.541      -7.331      -8.947      -9.959     -11.526     -12.888     -16.414     -21.460     -25.618       -40.399      -128.305
  OT............................      38.279      22.346       1.520      -5.930      -8.796      -9.951      -9.978     -10.880     -12.671     -15.707     -19.181        -0.811       -69.228
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                         CONFERENCE REPORT ON THE FISCAL YEAR 2004 BUDGET RESOLUTION: MANDATORY SPENDING
                                                                                      [Dollars in billions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal Year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013        2004-08       2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
  BA............................   1,390.568   1,463.400   1,572.926   1,687.270   1,780.358   1,878.806   1,980.263   2,080.295   2,194.797   2,286.233   2,417.190     8,382.760    19,341.538
  OT............................   1,338.949   1,407.478   1,517.348   1,623.209   1,715.019   1,810.930   1,910.974   2,012.192   2,129.012   2,213.071   2,347.923     8,073.984    18,687.156
On-budget:
  BA............................   1,025.871   1,080.801   1,180.488   1,284.255   1,364.890   1,449.527   1,534.456   1,616.371   1,712.448   1,780.808   1,885.466     6,359.961    14,889.510
  OT............................     976.272   1,027.289   1,127.700   1,223.274   1,302.921   1,385.401   1,469.307   1,552.708   1,651.493   1,712.956   1,821.999     6,066.585    14,275.048
Off-budget:
  BA............................     364.697     382.599     392.438     403.015     415.468     429.279     445.807     463.924     482.349     505.425     531.724     2,022.799     4,452.028
  OT............................     362.677     380.189     389.648     399.935     412.098     425.529     441.667     459.484     477.519     500.115     525.924     2,007.399     4,412.108

                                                                                           BY FUNCTION
National Defense (050):
  BA............................       0.357       0.488       0.634       0.678       0.706       0.757       0.779       0.814       0.844       0.851       0.891         3.263         7.442
  OT............................      -0.144       0.355       0.555       0.632       0.661       0.704       0.727       0.760       0.786       0.788       0.826         2.907         6.794
International Affairs (150):
  BA............................      -2.901      -2.970      -0.300       0.729       0.749       0.766       0.783       0.799       0.814       0.829       0.848        -1.026         3.047
  OT............................      -6.717      -2.568      -2.605      -2.656      -2.620      -2.515      -2.492      -2.490      -2.507      -2.527      -2.480       -12.964       -25.460
General Science, Space, and Technology (250):
  BA............................       0.106       0.030       0.031       0.031       0.032       0.033       0.033       0.034       0.035       0.036       0.036         0.157         0.331
  OT............................       0.099       0.098       0.095       0.064       0.045       0.033       0.032       0.033       0.034       0.034       0.035         0.335         0.503
Energy (270):
  BA............................      -1.163      -1.038      -1.178      -1.200      -1.362      -1.778      -1.885      -1.902      -1.931      -1.949      -1.969        -6.556       -16.192
  OT............................      -2.712      -2.704      -2.922      -2.699      -2.832      -3.228      -3.225      -3.237      -3.181      -2.929      -3.089       -14.385       -30.046
Natural Resources and Environment (300):
  BA............................       1.578       2.296       2.702       2.865       2.803       2.745       3.185       3.316       3.381       3.333       3.244        13.411        29.870
  OT............................       1.083       1.768       2.100       2.847       2.663       2.562       3.002       3.161       3.264       3.241       3.258        11.940        27.866
Agriculture (350):
  BA............................      18.691      19.340      21.394      21.094      20.423      19.470      19.884      19.159      18.416      17.806      17.335       101.721       194.321
  OT............................      17.513      18.067      20.230      19.980      19.349      18.423      19.000      18.413      17.693      17.099      16.627        96.049       184.881
Commerce and Housing Credit (370):
  BA............................       5.062       7.812       8.512       6.356       4.921       4.333       3.984       3.617       3.337       3.091       2.795        31.934        48.758
  OT............................       2.227       3.282       3.943       1.288      -0.969      -1.975      -2.389      -3.140      -3.995      -4.633      -4.888         5.569       -13.476
On-budget:
  BA............................       8.662       8.012       9.012       8.834       8.092       7.865       7.759       7.746       7.852       7.864       7.989        41.815        81.025
  OT............................       5.827       3.482       4.443       3.766       2.202       1.557       1.386       0.989       0.520       0.140       0.306        15.450        18.791
Off-budget:
  BA............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
  OT............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
Transportation (400):
  BA............................      41.480      46.301      47.355      48.304      50.396      51.651      52.485      51.526      51.584      51.652      51.727       244.007       502.981
  OT............................       2.663       2.261       2.185       2.049       1.984       1.927       1.956       1.967       2.002       2.048       2.101        10.406        20.480
Community and Regional Development (450)
  BA............................       0.526       0.237       0.139       0.133       0.135       0.057       0.059       0.065       0.067       0.069       0.073         0.701         1.034
  OT............................      -0.060      -0.089      -0.120      -0.163      -0.220      -0.267      -0.304      -0.334      -0.329      -0.321      -0.310        -0.859        -2.457
Education, Training, Employment and Social Services (500):
  BA............................       9.824       9.528      10.437      11.183      11.546      11.839      12.106      12.268      12.605      12.852      13.179        54.533       117.543
  OT............................       9.497       8.999       9.868      10.502      10.814      11.143      11.397      11.637      11.867      12.099      12.411        51.326       110.737
Health (550):
  BA............................     173.445     190.934     209.034     227.436     246.664     267.762     289.941     313.654     338.431     355.984     384.238     1,141.830     2,824.078
  OT............................     173.532     191.043     210.027     228.610     247.050     268.155     290.258     313.995     338.820     356.533     384.830     1,144.885     2,829.321
Medicare (570):
  BA............................     244.788     262.279     278.875     317.717     339.703     365.106     391.015     418.716     448.476     480.862     521.157     1,563.680     3,823.906
  OT............................     244.637     262.557     281.819     314.487     339.995     365.006     390.798     419.022     451.885     477.098     521.482     1,563.864     3,824.149
Income Security (600):
  BA............................     282.370     273.806     285.061     291.505     297.195     307.983     317.931     327.549     341.123     342.715     355.788     1,455.550     3,140.656
  OT............................     283.396     273.296     284.750     290.868     296.302     306.692     316.578     326.393     340.128     341.931     355.337     1,451.908     3,132.275
Social Security (650):
  BA............................     475.049     496.858     517.136     542.285     570.459     601.406     636.285     674.339     715.354     760.831     810.692     2,728.144     6,325.645
  OT............................     473.029     494.448     514.346     539.205     567.089     597.656     632.145     669.899     710.524     755.521     804.892     2,712.744     6,285.725
On-budget:
  BA............................      13.234      14.269      15.446      16.395      17.892      19.677      21.782      24.254      28.140      31.326      34.315        83.679       223.496
  OT............................      13.234      14.269      15.446      16.395      17.892      19.677      21.782      24.254      28.140      31.326      34.315        83.679       223.496
Off-budget:
  BA............................     461.815     482.589     501.690     525.890     552.567     581.729     614.503     650.085     687.214     729.505     776.377     2,644.465     6,102.149
  OT............................     459.795     480.179     498.900     522.810     549.197     577.979     610.363     645.645     682.384     724.195     770.577     2,629.065     6,062.229
Veterans Benefits and Services (700):
  BA............................      31.065      33.822      38.749      36.585      34.602      37.828      38.483      39.203      42.845      38.731      42.455       181.586       383.303
  OT............................      30.584      33.609      38.370      36.500      34.418      37.736      38.394      39.091      42.728      38.521      42.326       180.633       381.693
Administration of Justice (750):
  BA............................       2.254       4.097       2.184       1.320       0.840       0.783       0.726       0.668       0.601       0.533       0.459         9.224        12.211
  OT............................       2.228       3.293       2.582       1.505       0.769       0.673       0.616       0.558       0.495       0.429       0.356         8.822        11.276
General Government (800):
  BA............................       2.483       2.850       2.881       2.886       2.935       2.557       2.633       2.707       2.791       2.884       2.971        14.109        28.095
  OT............................       2.540       3.033       2.845       2.827       2.910       2.697       2.645       2.701       2.774       3.016       2.938        14.312        28.386
Net Interest (900):
  BA............................     156.067     169.656     212.681     243.313     258.818     269.793     278.541     283.448     288.931     293.336     292.764     1,154.261     2,591.281
  OT............................     156.067     169.656     212.681     243.313     258.818     269.793     278.541     283.448     288.931     293.336     292.764     1,154.261     2,591.281
On-budget:
  BA............................     240.176     259.414     310.630     352.219     380.574     405.647     429.542     450.651     473.381     496.015     514.513     1,708.484     4,072.586
  OT............................     240.176     259.414     310.630     352.219     380.574     405.647     429.542     450.651     473.381     496.015     514.513     1,708.484     4,072.586
Off-budget:
  BA............................     -84.109     -89.758     -97.949    -108.906    -121.756    -135.854    -151.001    -167.203    -184.450    -202.679    -221.749      -554.223    -1,481.305
  OT............................     -84.109     -89.758     -97.949    -108.906    -121.756    -135.854    -151.001    -167.203    -184.450    -202.679    -221.749      -554.223    -1,481.305
Allowances (920):
  BA............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
  OT............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
Undistributed Offsetting Receipts (950):
  BA............................     -50.513     -52.926     -63.401     -65.950     -61.207     -64.285     -66.705     -69.685     -72.907     -78.213     -81.493      -307.769      -676.772
  OT............................     -50.513     -52.926     -63.401     -65.950     -61.207     -64.285     -66.705     -69.685     -72.907     -78.213     -81.493      -307.769      -676.772
On-budget:
  BA............................     -41.104     -42.894     -52.598     -54.459     -49.035     -51.221     -52.785     -54.856     -57.007     -61.585     -63.783      -250.207      -540.223
  OT............................     -41.104     -42.894     -52.598     -54.459     -49.035     -51.221     -52.785     -54.856     -57.007     -61.585     -63.783      -250.207      -540.223
Off-budget:
  BA............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
  OT............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                          HOUSE-PASSED FISCAL YEAR 2004 BUDGET RESOLUTION: TOTAL SPENDING AND REVENUES
                                                                                      [Dollars in billions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal Year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013        2004-08       2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
  BA............................   2,158.555   2,225.395   2,349.552   2,483.786   2,597.355   2,716.161   2,834.044   2,950.169   3,084.734   3,215.178   3,369.698    12,372.249    27,826.072
  OT............................   2,143.410   2,232.365   2,337.286   2,450.075   2,555.757   2,674.646   2,797.065   2,916.177   3,057.083   3,172.626   3,335.342    12,250.129    27,528.422
On-Budget:
  BA............................   1,790.046   1,838.519   1,952.639   2,076.319   2,177.306   2,282.248   2,383.491   2,481.237   2,597.191   2,704.406   2,832.479    10,327.031    23,325.835
  OT............................   1,776.895   1,847.887   1,943.164   2,045.680   2,139.077   2,244.487   2,350.662   2,451.698   2,574.381   2,667.177   2,803.936    10,220.295    23,068.149
Off-Budget:
  BA............................     368.509     386.876     396.913     407.467     420.049     433.913     450.553     468.932     487.543     510.772     537.219     2,045.218     4,500.237
  OT............................     366.515     384.478     394.122     404.395     416.680     430.159     446.403     464.479     482.702     505.449     531.406     2,029.834     4,460.273
Revenues:
  Total.........................   1,855.336   1,908.024   2,107.162   2,281.891   2,444.370   2,587.249   2,736.597   2,886.701   3,028.028   3,194.074   3,372.405    11,328.696    26,546.501
  On-budget.....................   1,323.729   1,350.138   1,519.267   1,662.729   1,793.142   1,902.740   2,017.385   2,130.867   2,235.796   2,364.426   2,502.635     8,228.016    19,479.125
  Off-budget....................     531.607     557.886     587.895     619.162     651.228     684.509     719.212     755.834     792.232     829.648     869.770     3,100.680     7,067.376
Surplus/Deficit (-):
  Total.........................    -288.074    -324.341    -230.124    -168.184    -111.387     -87.397     -60.468     -29.476     -29.055      21.448      37.063      -921.433      -981.921
  On-budget.....................    -453.166    -497.749    -423.897    -382.951    -345.935    -341.747    -333.277    -320.831    -338.585    -302.751    -301.301    -1,992.279    -3,589.024
  Off-budget....................     165.092     173.408     193.773     214.767     234.548     254.350     272.809     291.355     309.530     324.199     338.364     1,070.846     2,607.103
Debt Held by the Public (end of        3,858       4,179       4,416       4,597       4,720       4,819       4,889       4,926       4,963       4,949       4,918            na            na
 year)..........................
Debt Subject to Limit (end of          6,687       7,264       7,794       8,302       8,777       9,251       9,719      10,179      10,660      11,112      11,564            na            na
 year)..........................

                                                                                           BY FUNCTION
National Defense (050):
  BA............................     392.494     400.546     420.071     440.185     460.435     480.886     494.067     507.840     522.103     536.531     551.323     2,202.123     4,813.987
  OT............................     386.229     400.916     414.237     426.011     438.656     462.861     480.650     497.348     516.338     523.884     543.541     2,142.681     4,704.442
International Affairs (150):
  BA............................      22.506      24.750      28.631      31.090      32.271      33.120      33.775      34.466      35.315      36.148      37.006       149.862       326.572
  OT............................      19.283      23.654      24.090      25.557      27.344      28.303      29.284      30.078      30.916      31.716      32.576       128.948       283.518
General Science, Space, and Technology (250):
  BA............................      23.153      22.771      23.591      24.344      25.153      25.899      26.504      27.140      27.800      28.464      29.134       121.758       260.800
  OT............................      21.556      22.348      23.082      23.690      24.425      25.127      25.799      26.435      27.079      27.735      28.393       118.672       254.113
Energy (270):
  BA............................       2.074       2.583       2.707       2.609       2.431       2.988       2.977       3.085       3.181       3.288       3.401        13.318        29.250
  OT............................       0.439       0.928       0.961       1.244       1.022       1.400       1.660       1.781       1.955       2.316       2.293         5.555        15.560
Natural Resources and Environment (300):
  BA............................      30.816      29.240      30.253      30.945      31.453      32.230      33.463      34.432      35.438      36.354      37.251       154.121       331.059
  OT............................      28.940      29.868      30.276      31.203      31.335      31.713      32.843      33.768      34.752      35.626      36.600       154.395       327.984
Agriculture (350):
  BA............................      24.418      24.192      26.481      26.197      25.567      24.607      24.998      24.293      23.781      23.390      23.155       127.044       246.661
  OT............................      23.365      23.363      25.205      25.000      24.430      23.543      24.091      23.526      23.030      22.654      22.413       121.541       237.255
Commerce and Housing Credit (370):
  BA............................       5.212       7.205       8.137       5.673       6.000       5.103       4.999       4.621       4.437       4.269       4.065        32.118        54.509
  OT............................       2.281       3.294       3.457       0.487      -0.068      -1.562      -1.793      -2.584      -3.374      -3.945      -4.138         5.608       -10.226
On-budget:
  BA............................       8.812       7.405       8.637       8.151       9.171       8.635       8.774       8.750       8.952       9.042       9.259        41.999        86.776
  OT............................       5.881       3.494       3.957       2.965       3.103       1.970       1.982       1.545       1.141       0.828       1.056        15.489        22.041
Off-budget:
  BA............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
  OT............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
Transportation (400):
  BA............................      64.091      65.430      65.806      66.718      67.726      68.692      69.881      71.084      72.789      74.498      76.283       334.372       698.907
  OT............................      67.847      69.225      66.917      66.538      67.264      68.297      69.552      70.915      72.410      74.004      75.640       338.241       700.762
Community and Regional Development (450):
  BA............................      12.251      14.137      14.356      14.647      14.968      15.351      15.702      16.076      16.468      16.858      17.256        73.459       155.819
  OT............................      15.994      15.923      15.991      15.119      14.918      14.500      14.803      15.146      15.524      15.892      16.288        76.451       154.104
Education, Training, Employment and Social Services (500):
  BA............................      86.169      84.748      84.381      86.670      88.650      90.811      92.393      93.935      95.832      97.635      99.536       435.260       914.591
  OT............................      81.340      85.706      83.598      84.639      86.417      88.355      90.486      92.170      93.936      95.713      97.602       428.715       898.622
Health (550):
  BA............................     221.878     235.103     248.663     265.462     284.237     303.780     324.153     345.696     370.681     395.391     423.754     1,337.245     3,196.920
  OT............................     218.021     235.479     248.358     264.949     283.363     302.637     322.870     344.412     369.399     394.133     422.447     1,334.786     3,188.047
Medicare (570):
  BA............................     248.586     266.538     282.932     322.237     344.656     370.545     396.931     424.989     452.618     489.873     528.586     1,586.908     3,879.905
  OT............................     248.434     266.865     285.912     319.017     344.943     370.436     396.685     425.263     455.994     486.064     528.861     1,587.173     3,880.040
Income Security (600):
  BA............................     326.588     315.485     325.921     331.772     336.386     344.748     352.988     360.370     374.372     377.623     391.496     1,654.312     3,511.161
  OT............................     334.373     321.120     329.359     334.216     338.308     345.993     353.901     361.147     375.115     378.358     392.351     1,668.996     3,529.868
Social Security (650):
  BA............................     478.882     501.089     521.493     546.791     575.122     606.191     641.237     679.459     720.651     766.311     816.362     2,750.686     6,374.706
  OT............................     476.888     498.690     518.702     543.719     571.753     602.437     637.087     675.006     715.810     760.988     810.549     2,735.301     6,334.741
On-budget:
  BA............................      13.255      14.223      15.330      16.451      17.975      19.827      21.982      24.357      28.235      31.450      34.481        83.806       224.311
  OT............................      13.255      14.222      15.330      16.451      17.975      19.827      21.982      24.357      28.235      31.450      34.481        83.805       224.310
Off-budget:
  BA............................     465.627     486.866     506.163     530.340     557.147     586.364     619.255     655.102     692.416     734.861     781.881     2,666.880     6,150.395
  OT............................     463.633     484.468     503.372     527.268     553.778     582.610     615.105     650.649     687.575     729.538     776.068     2,651.496     6,110.431
Veterans Benefits and Services (700):
  BA............................      57.597      61.567      65.847      64.000      62.348      65.696      66.939      68.222      72.714      69.867      74.518       319.458       671.718
  OT............................      57.486      61.119      65.632      63.830      62.074      65.557      66.695      67.938      72.418      69.477      74.198       318.212       668.938
Administration of Justice (750):
  BA............................      38.543      37.313      37.676      37.586      37.966      38.884      39.846      40.891      42.160      43.459      44.808       189.425       400.589
  OT............................      37.712      40.898      39.007      38.030      37.862      38.639      39.669      40.703      41.855      43.131      44.471       194.436       404.265
General Government (800):
  BA............................      18.178      19.779      20.038      19.672      19.976      19.789      20.208      20.620      21.342      22.090      22.881        99.254       206.395
  OT............................      18.103      19.597      20.226      19.731      19.737      19.584      19.800      20.175      20.874      21.751      22.374        98.875       203.849
Net Interest (900):
  BA............................     155.632     166.912     205.969     233.138     245.717     253.445     259.512     262.464     265.793     268.782     267.822     1,105.181     2,429.554
  OT............................     155.632     166.912     205.969     233.138     245.717     253.445     259.512     262.464     265.793     268.782     267.822     1,105.181     2,429.554
On-budget:
  BA............................     239.741     256.670     303.916     342.042     367.472     389.300     410.519     429.676     450.251     471.470     489.580     1,659.400     3,910.896
  OT............................     239.741     256.670     303.916     342.042     367.472     389.300     410.519     429.676     450.251     471.470     489.580     1,659.400     3,910.896
Off-budget:
  BA............................     -84.109     -89.758     -97.947    -108.904    -121.755    -135.855    -151.007    -167.212    -184.458    -202.688    -221.758      -554.219    -1,481.342
  OT............................     -84.109     -89.758     -97.947    -108.904    -121.755    -135.855    -151.007    -167.212    -184.458    -202.688    -221.758      -554.219    -1,481.342
Allowances (920):
  BA............................  ..........      -1.067  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........        -1.067        -1.067
  OT............................  ..........      -0.614      -0.292      -0.093      -0.036      -0.015  ..........  ..........  ..........  ..........  ..........        -1.050        -1.050
Undistributed Offsetting Receipts (950):
  BA............................     -50.513     -52.926     -63.401     -65.950     -63.707     -66.604     -66.529     -69.514     -72.741     -75.653     -78.939      -312.588      -675.964
  OT............................     -50.513     -52.926     -63.401     -65.950     -63.707     -66.604     -66.529     -69.514     -72.741     -75.653     -78.939      -312.588      -675.964
On-budget:
  BA............................     -41.104     -42.894     -52.598     -54.459     -51.535     -53.540     -52.609     -54.685     -56.841     -59.025     -61.229      -255.026      -539.415
  OT............................     -41.104     -42.894     -52.598     -54.459     -51.535     -53.540     -52.609     -54.685     -56.841     -59.025     -61.229      -255.026      -539.415
Off-budget:
  BA............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
  OT............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                             HOUSE-PASSED FISCAL YEAR 2004 BUDGET RESOLUTION: DISCRETIONARY SPENDING
                                                                                      [Dollars in billions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal Year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013        2004-08       2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
  BA............................     765.796     775.386     802.587     830.682     860.381     891.601     915.318     939.877     965.492     991.479   1,018.043     4,160.637     8,990.846
  OT............................     804.682     831.265     841.708     857.651     878.630     911.456     940.851     968.691     999.228   1,018.712   1,050.542     4,320.710     9,298.734
Defense
  BA............................     392.137     400.058     419.437     439.507     459.729     480.129     493.288     507.026     521.259     535.680     550.432     2,198.860     4,806.545
  OT............................     386.373     400.561     413.682     425.379     437.995     462.157     479.923     496.588     515.552     523.096     542.715     2,139.774     4,697.648
Nondefense
  BA............................     373.659     375.328     383.150     391.175     400.652     411.472     422.030     432.851     444.233     455.799     467.611     1,961.777     4,184.301
  OT............................     418.309     430.704     428.026     432.272     440.635     449.299     460.928     472.103     483.676     495.616     507.827     2,180.936     4,601.086

                                                                                           BY FUNCTION
National Defense (050):
  BA............................     392.137     400.058     419.437     439.507     459.729     480.129     493.288     507.026     521.259     535.680     550.432     2,198.860     4,806.545
  OT............................     386.373     400.561     413.682     425.379     437.995     462.157     479.923     496.588     515.552     523.096     542.715     2,139.774     4,697.648
International Affairs (150):
  BA............................      25.407      27.843      29.122      30.620      31.842      32.791      33.546      34.351      35.187      36.016      36.851       152.218       328.169
  OT............................      26.000      26.376      26.888      28.455      30.266      31.234      32.310      33.233      34.097      34.935      35.754       143.219       313.548
General Science, Space, and Technology (250):
  BA............................      23.047      22.741      23.561      24.314      25.122      25.867      26.472      27.108      27.767      28.430      29.100       121.605       260.482
  OT............................      21.457      22.251      22.989      23.627      24.381      25.095      25.768      26.404      27.047      27.703      28.360       118.343       253.625
Energy (270):
  BA............................       3.237       3.625       3.888       3.813       3.794       4.752       4.840       4.960       5.086       5.211       5.344        19.872        45.313
  OT............................       3.151       3.614       3.856       3.915       3.816       4.562       4.804       4.919       5.043       5.167       5.297        19.763        44.993
Natural Resources and Environment (300):
  BA............................      29.238      27.018      27.588      28.150      28.751      29.646      30.518      31.431      32.374      33.340      34.320       141.153       303.136
  OT............................      27.857      28.167      28.205      28.427      28.771      29.305      30.073      30.914      31.800      32.700      33.657       142.875       302.019
Agriculture (350):
  BA............................       5.727       5.109       5.467       5.569       5.691       5.838       6.005       6.177       6.354       6.538       6.728        27.674        59.476
  OT............................       5.852       5.537       5.334       5.462       5.599       5.783       5.943       6.116       6.287       6.471       6.658        27.715        59.190
Commerce and Housing Credit (370):
  BA............................       0.150      -0.503      -0.217      -0.489       0.595       0.916       1.225       1.280       1.369       1.439       1.521         0.302         7.136
  OT............................       0.054       0.147      -0.314      -0.564       0.523       0.730       1.042       1.150       1.234       1.333       1.387         0.522         6.668
On-budget:
  BA............................       0.150      -0.503      -0.217      -0.489       0.595       0.916       1.225       1.280       1.369       1.439       1.521         0.302         7.136
  OT............................       0.054       0.147      -0.314      -0.564       0.523       0.730       1.042       1.150       1.234       1.333       1.387         0.522         6.668
Off-budget:
  BA............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
  OT............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
Transportation (400):
  BA............................      22.611      22.225      22.140      22.544      23.010      23.554      24.279      25.042      25.828      26.635      27.468       113.473       242.725
  OT............................      65.184      66.995      64.772      64.536      65.335      66.443      67.687      69.059      70.519      72.070      73.653       328.081       681.069
Community and Regional Development (450):
  BA............................      11.725      13.909      14.227      14.527      14.849      15.313      15.668      16.043      16.434      16.824      17.218        72.825       155.012
  OT............................      16.054      16.016      16.116      15.289      15.145      14.775      15.116      15.491      15.866      16.227      16.614        77.341       156.655
Education, Training, Employment and Social Services (500):
  BA............................      72.875      75.390      74.170      75.775      77.459      79.444      80.873      82.381      83.947      85.515      87.091       382.238       802.045
  OT............................      71.958      74.172      73.051      74.414      75.943      77.662      79.647      81.218      82.757      84.313      85.892       375.242       789.069
Health (550):
  BA............................      49.468      48.063      49.093      50.183      51.285      52.591      53.850      55.162      56.522      57.887      59.271       251.215       533.907
  OT............................      44.349      47.097      48.243      49.086      50.216      51.105      52.282      53.540      54.849      56.186      57.537       245.747       520.141
Medicare (570):
  BA............................       3.798       3.619       3.687       3.785       3.888       4.009       4.221       4.433       4.662       4.936       5.234        18.988        42.474
  OT............................       3.797       3.668       3.723       3.795       3.883       4.000       4.192       4.401       4.629       4.891       5.184        19.069        42.366
Income Security (600):
  BA............................      44.020      44.436      45.235      46.150      46.305      46.540      47.533      48.538      49.589      50.639      51.691       228.666       476.656
  OT............................      50.781      50.570      48.947      49.387      49.075      48.944      49.724      50.427      51.286      52.128      52.985       246.923       503.473
Social Security (650):
  BA............................       3.833       4.160       4.226       4.310       4.407       4.519       4.671       4.829       4.991       5.158       5.333        21.622        46.604
  OT............................       3.859       4.171       4.225       4.318       4.408       4.515       4.661       4.816       4.980       5.145       5.320        21.637        46.559
On-budget:
  BA............................       0.021       0.024       0.024       0.025       0.026       0.026       0.027       0.028       0.029       0.030       0.031         0.125         0.270
  OT............................       0.021       0.023       0.024       0.025       0.026       0.026       0.027       0.028       0.029       0.030       0.031         0.124         0.269
Off-budget:
  BA............................       3.812       4.136       4.202       4.285       4.381       4.493       4.644       4.801       4.962       5.128       5.302        21.497        46.334
  OT............................       3.838       4.148       4.201       4.293       4.382       4.489       4.634       4.788       4.951       5.115       5.289        21.513        46.290
Veterans Benefits and Services (700):
  BA............................      26.532      28.162      27.729      28.153      28.610      29.174      30.128      31.102      32.116      33.159      34.234       141.828       302.567
  OT............................      26.902      27.922      27.886      28.066      28.515      29.124      29.969      30.924      31.931      32.968      34.036       141.513       301.341
Administration of Justice (750):
  BA............................      36.289      33.314      35.592      36.372      37.247      38.266      39.328      40.482      41.819      43.190      44.612       180.791       390.222
  OT............................      35.484      37.693      36.532      36.636      37.212      38.127      39.256      40.398      41.614      42.961      44.373       186.200       394.802
General Government (800):
  BA............................      15.702      17.284      17.642      17.399      17.797      18.252      18.873      19.532      20.188      20.882      21.595        88.374       189.444
  OT............................      15.570      16.922      17.865      17.516      17.583      17.910      18.454      19.093      19.737      20.418      21.120        87.796       186.618
Allowances (920):
  BA............................  ..........      -1.067  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........        -1.067        -1.067
  OT............................  ..........      -0.614      -0.292      -0.093      -0.036      -0.015  ..........  ..........  ..........  ..........  ..........        -1.050        -1.050
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                               HOUSE-PASSED FISCAL YEAR 2004 BUDGET RESOLUTION: MANDATORY SPENDING
                                                                                      [Dollars in billions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal Year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013        2004-08       2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
  BA............................   1,392.759   1,450.009   1,546.965   1,653.104   1,736.974   1,824.560   1,918.726   2,010.292   2,119.242   2,223.699   2,351.655     8,211.612    18,835.226
  OT............................   1,338.728   1,401.100   1,495.578   1,592.424   1,677.127   1,763.190   1,856.214   1,947.486   2,057.855   2,153.914   2,284.800     7,929.419    18,229.688
On-budget:
  BA............................   1,028.062   1,067.269   1,154.254   1,249.922   1,321.306   1,395.140   1,472.817   1,546.161   1,636.661   1,718.055   1,819.738     6,187.891    14,381.323
  OT............................     976.051   1,020.770   1,105.657   1,192.322   1,264.829   1,337.520   1,414.445   1,487.795   1,580.104   1,653.580   1,758.683     5,921.098    13,815.705
Off-budget:
  BA............................     364.697     382.740     392.711     403.182     415.668     429.420     445.909     464.131     482.581     505.644     531.917     2,023.721     4,453.903
  OT............................     362.677     380.330     389.921     400.102     412.298     425.670     441.769     459.691     477.751     500.334     526.117     2,008.321     4,413.983

                                                                                           BY FUNCTION
National Defense (050):
  BA............................       0.357       0.488       0.634       0.678       0.706       0.757       0.779       0.814       0.844       0.851       0.891         3.263         7.442
  OT............................      -0.144       0.355       0.555       0.632       0.661       0.704       0.727       0.760       0.786       0.788       0.826         2.907         6.794
International Affairs (150):
  BA............................      -2.901      -3.093      -0.491       0.470       0.429       0.329       0.229       0.115       0.128       0.132       0.155        -2.356        -1.597
  OT............................      -6.717      -2.722      -2.798      -2.898      -2.922      -2.931      -3.026      -3.155      -3.181      -3.219      -3.178       -14.271       -30.030
General Science, Space, and Technology (250):
  BA............................       0.106       0.030       0.030       0.030       0.031       0.032       0.032       0.032       0.033       0.034       0.034         0.153         0.318
  OT............................       0.099       0.097       0.093       0.063       0.044       0.032       0.031       0.031       0.032       0.032       0.033         0.329         0.488
Energy (270):
  BA............................      -1.163      -1.042      -1.181      -1.204      -1.363      -1.764      -1.863      -1.875      -1.905      -1.923      -1.943        -6.554       -16.063
  OT............................      -2.712      -2.686      -2.895      -2.671      -2.794      -3.162      -3.144      -3.138      -3.088      -2.851      -3.004       -14.208       -29.433
Natural Resources and Environment (300):
  BA............................       1.578       2.222       2.665       2.795       2.702       2.584       2.945       3.001       3.064       3.014       2.931        12.968        27.923
  OT............................       1.083       1.701       2.071       2.776       2.564       2.408       2.770       2.854       2.952       2.926       2.943        11.520        25.965
Agriculture (350):
  BA............................      18.691      19.083      21.014      20.628      19.876      18.769      18.993      18.116      17.427      16.852      16.427        99.370       187.185
  OT............................      17.513      17.826      19.871      19.538      18.831      17.760      18.148      17.410      16.743      16.183      15.755        93.826       178.065
Commerce and Housing Credit (370):
  BA............................       5.062       7.708       8.354       6.162       5.405       4.187       3.774       3.341       3.068       2.830       2.544        31.816        47.373
  OT............................       2.227       3.147       3.771       1.051      -0.591      -2.292      -2.835      -3.734      -4.608      -5.278      -5.525         5.086       -16.894
On-budget:
  BA............................       8.662       7.908       8.854       8.640       8.576       7.719       7.549       7.470       7.583       7.603       7.738        41.697        79.640
  OT............................       5.827       3.347       4.271       3.529       2.580       1.240       0.940       0.395      -0.093      -0.505      -0.331        14.967        15.373
Off-budget:
  BA............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
  OT............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
Transportation (400):
  BA............................      41.480      43.205      43.666      44.174      44.716      45.138      45.602      46.042      46.961      47.863      48.815       220.899       456.182
  OT............................       2.663       2.230       2.145       2.002       1.929       1.854       1.865       1.856       1.891       1.934       1.987        10.160        19.693
Community and Regional Development (450):
  BA............................       0.526       0.228       0.129       0.120       0.119       0.038       0.034       0.033       0.034       0.034       0.038         0.634         0.807
  OT............................      -0.060      -0.093      -0.125      -0.170      -0.227      -0.275      -0.313      -0.345      -0.342      -0.335      -0.326        -0.890        -2.551
Education, Training, Employment and Social Services (500):
  BA............................      13.294       9.358      10.211      10.895      11.191      11.367      11.520      11.554      11.885      12.120      12.445        53.022       112.546
  OT............................       9.382      11.534      10.547      10.225      10.474      10.693      10.839      10.952      11.179      11.400      11.710        53.473       109.553
Health (550):
  BA............................     172.410     187.040     199.570     215.279     232.952     251.189     270.303     290.534     314.159     337.504     364.483     1,086.030     2,663.013
  OT............................     173.672     188.382     200.115     215.863     233.147     251.532     270.588     290.872     314.550     337.947     364.910     1,089.039     2,667.906
Medicare (570):
  BA............................     244.788     262.919     279.245     318.452     340.768     366.536     392.710     420.556     447.956     484.937     523.352     1,567.920     3,837.431
  OT............................     244.637     263.197     282.189     315.222     341.060     366.436     392.493     420.862     451.365     481.173     523.677     1,568.104     3,837.674
Income Security (600):
  BA............................     282.568     271.049     280.686     285.622     290.081     298.208     305.455     311.832     324.783     326.984     339.805     1,425.646     3,034.505
  OT............................     283.592     270.550     280.412     284.829     289.233     297.049     304.177     310.720     323.829     326.230     339.366     1,422.073     3,026.395
Social Security (650):
  BA............................     475.049     496.929     517.267     542.481     570.715     601.672     636.566     674.630     715.660     761.153     811.029     2,729.064     6,328.102
  OT............................     473.029     494.519     514.477     539.401     567.345     597.922     632.426     670.190     710.830     755.843     805.229     2,713.664     6,288.182
On-budget:
  BA............................      13.234      14.199      15.306      16.426      17.949      19.801      21.955      24.329      28.206      31.420      34.450        83.681       224.041
  OT............................      13.234      14.199      15.306      16.426      17.949      19.801      21.955      24.329      28.206      31.420      34.450        83.681       224.041
Off-budget:
  BA............................     461.815     482.730     501.961     526.055     552.766     581.871     614.611     650.301     687.454     729.733     776.579     2,645.383     6,104.061
  OT............................     459.795     480.320     499.171     522.975     549.396     578.121     610.471     645.861     682.624     724.423     770.779     2,629.983     6,064.141
Veterans Benefits and Services (700):
  BA............................      31.065      33.405      38.118      35.847      33.738      36.522      36.811      37.120      40.598      36.708      40.284       177.630       369.151
  OT............................      30.584      33.197      37.746      35.764      33.559      36.433      36.726      37.014      40.487      36.509      40.162       176.699       367.597
Administration of Justice (750):
  BA............................       2.254       3.999       2.084       1.214       0.719       0.618       0.518       0.409       0.341       0.269       0.196         8.634        10.367
  OT............................       2.228       3.205       2.475       1.394       0.650       0.512       0.413       0.305       0.241       0.170       0.098         8.236         9.463
General Government (800):
  BA............................       2.476       2.495       2.396       2.273       2.179       1.537       1.335       1.088       1.154       1.208       1.286        10.880        16.951
  OT............................       2.533       2.675       2.361       2.215       2.154       1.674       1.346       1.082       1.137       1.333       1.254        11.079        17.231
Net Interest (900):
  BA............................     155.632     166.912     205.969     233.138     245.717     253.445     259.512     262.464     265.793     268.782     267.822     1,105.181     2,429.554
  OT............................     155.632     166.912     205.969     233.138     245.717     253.445     259.512     262.464     265.793     268.782     267.822     1,105.181     2,429.554
On-budget:
  BA............................     239.741     256.670     303.916     342.042     367.472     389.300     410.519     429.676     450.251     471.470     489.580     1,659.400     3,910.896
  OT............................     239.741     256.670     303.916     342.042     367.472     389.300     410.519     429.676     450.251     471.470     489.580     1,659.400     3,910.896
Off-budget:
  BA............................     -84.109     -89.758     -97.947    -108.904    -121.755    -135.855    -151.007    -167.212    -184.458    -202.688    -221.758      -554.219    -1,481.342
  OT............................     -84.109     -89.758     -97.947    -108.904    -121.755    -135.855    -151.007    -167.212    -184.458    -202.688    -221.758      -554.219    -1,481.342
Allowances (920):
  BA............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
  OT............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
Undistributed Offsetting Receipts (950):
  BA............................     -50.513     -52.926     -63.401     -65.950     -63.707     -66.604     -66.529     -69.514     -72.741     -75.653     -78.939      -312.588      -675.964
  OT............................     -50.513     -52.926     -63.401     -65.950     -63.707     -66.604     -66.529     -69.514     -72.741     -75.653     -78.939      -312.588      -675.964
On-budget:
  BA............................     -41.104     -42.894     -52.598     -54.459     -51.535     -53.540     -52.609     -54.685     -56.841     -59.025     -61.229      -255.026      -539.415
  OT............................     -41.104     -42.894     -52.598     -54.459     -51.535     -53.540     -52.609     -54.685     -56.841     -59.025     -61.229      -255.026      -539.415
Off-budget:
  BA............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
  OT............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                            SENATE-PASSED FY 2004 BUDGET RESOLUTION AMENDMENT: AGGREGATE AND FUNCTION LEVELS
                                                                                                          [Dollars in billions]
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   2002
                           Function                               Actual       2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013       2004-08      2004-13
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
050--National Defense:
  BA..........................................................     362.106     395.494     400.658     420.402     440.769     461.400     482.340     489.209     495.079     502.947     510.984     519.393    2,205.569    4,723.181
  OT..........................................................     348.555     389.229     401.064     414.536     426.591     439.621     464.315     477.989     487.993     500.478     501.628     514.885    2,146.127    4,629.100
Discretionary:
  BA..........................................................     360.988     395.137     400.058     419.437     439.507     459.729     480.129     486.788     492.526     500.259     508.180     516.432    2,198.860    4,703.045
  OT..........................................................     348.511     389.373     400.561     413.682     425.379     437.995     462.157     475.620     485.494     497.848     498.887     511.989    2,139.774    4,609.612
Mandatory:
  BA..........................................................       1.118       0.357       0.600       0.965       1.262       1.671       2.211       2.421       2.553       2.688       2.804       2.961        6.709       20.136
  OT..........................................................       0.044      -0.144       0.503       0.854       1.212       1.626       2.158       2.369       2.499       2.630       2.741       2.896        6.353       19.488
150--International Affairs:
  BA..........................................................      25.144      22.506      25.681      29.734      32.308      33.603      34.611      35.413      36.258      37.136      38.005      38.885      155.937      341.634
  OT..........................................................      22.357      19.283      24.207      24.917      26.539      28.464      29.604      30.733      31.689      32.565      33.408      34.298      133.730      296.422
Discretionary:
  BA..........................................................      25.208      25.407      28.651      30.034      31.579      32.854      33.845      34.630      35.459      36.322      37.176      38.037      156.963      338.587
  OT..........................................................      26.229      26.000      26.775      27.522      29.195      31.084      32.119      33.225      34.179      35.072      35.935      36.778      146.694      321.882
Mandatory:
  BA..........................................................      -0.064      -2.901      -2.970      -0.300       0.729       0.749       0.766       0.783       0.799       0.814       0.829       0.848       -1.026        3.047
  OT..........................................................      -3.872      -6.717      -2.568      -2.605      -2.656      -2.620      -2.515      -2.492      -2.490      -2.507      -2.527      -2.480      -12.964      -25.460
250--General Science, Space and Technology:
  BA..........................................................      22.016      23.153      23.603      24.433      25.217      26.055      26.832      27.462      28.121      28.805      29.492      30.185      126.140      270.205
  OT..........................................................      20.772      21.556      22.728      23.715      24.420      25.202      25.942      26.639      27.296      27.963      28.639      29.319      122.007      261.863
Discretionary:
  BA..........................................................      21.922      23.047      23.573      24.402      25.186      26.023      26.799      27.429      28.087      28.770      29.456      30.149      125.983      269.874
  OT..........................................................      20.715      21.457      22.630      23.620      24.356      25.157      25.909      26.607      27.263      27.929      28.605      29.284      121.672      261.360
Mandatory:
  BA..........................................................       0.094       0.106       0.030       0.031       0.031       0.032       0.033       0.033       0.034       0.035       0.036       0.036        0.157        0.331
  OT..........................................................       0.057       0.099       0.098       0.095       0.064       0.045       0.033       0.032       0.033       0.034       0.034       0.035        0.335        0.503
270--Energy:
  BA..........................................................       0.400       2.074       2.634       2.797       2.714       2.540       3.080       3.090       3.194       3.296       3.408       3.520       13.765       30.273
  OT..........................................................       0.483       0.439       0.873       0.947       1.272       1.069       1.419       1.686       1.794       1.976       2.357       2.326        5.578       15.718
Discretionary:
  BA..........................................................       3.248       3.237       3.672       3.975       3.914       3.902       4.858       4.975       5.096       5.227       5.357       5.489       20.321       46.465
  OT..........................................................       2.974       3.151       3.577       3.869       3.971       3.901       4.647       4.911       5.031       5.157       5.286       5.415       19.963       45.764
Mandatory:
  BA..........................................................      -2.848      -1.163      -1.038      -1.178      -1.200      -1.362      -1.778      -1.885      -1.902      -1.931      -1.949      -1.969       -6.556      -16.192
  OT..........................................................      -2.491      -2.712      -2.704      -2.922      -2.699      -2.832      -3.228      -3.225      -3.237      -3.181      -2.929      -3.089      -14.385      -30.046
300--Natural Resources and Environment:
  BA..........................................................      30.636      30.816      35.253      32.639      33.261      33.576      34.245      35.370      36.198      36.958      37.592      38.316      168.974      353.408
  OT..........................................................      29.459      28.940      31.378      32.325      33.889      34.128      34.119      34.701      35.512      36.267      36.874      37.677      165.840      346.870
Discretionary:
  BA..........................................................      29.124      29.238      32.836      29.802      30.097      30.583      31.319      31.998      32.705      33.448      34.196      34.970      154.637      321.954
  OT..........................................................      28.949      27.857      29.489      30.090      30.936      31.392      31.431      31.542      32.199      32.899      33.595      34.342      153.339      317.915
Mandatory:
  BA..........................................................       1.512       1.578       2.417       2.837       3.164       2.993       2.926       3.372       3.493       3.510       3.396       3.346       14.337       31.454
  OT..........................................................       0.510       1.083       1.889       2.235       2.954       2.736       2.688       3.159       3.313       3.368       3.279       3.335       12.501       28.955
350--Agriculture:
  BA..........................................................      23.821      24.418      24.457      26.844      26.661      26.141      25.363      25.943      25.407      24.864      24.455      24.185      129.466      254.320
  OT..........................................................      22.188      23.365      23.530      25.604      25.426      24.949      24.237      24.979      24.578      24.053      23.660      23.386      123.746      244.402
Discretionary:
  BA..........................................................       5.688       5.727       5.243       5.609       5.734       5.876       6.037       6.208       6.386       6.575       6.767       6.962       28.499       61.397
  OT..........................................................       5.306       5.852       5.589       5.533       5.613       5.758       5.958       6.128       6.303       6.487       6.679       6.871       28.451       60.919
Mandatory:
  BA..........................................................      18.133      18.691      19.214      21.235      20.927      20.265      19.326      19.735      19.021      18.289      17.688      17.223      100.967      192.923
  OT..........................................................      16.882      17.513      17.941      20.071      19.813      19.191      18.279      18.851      18.275      17.566      16.981      16.515       95.295      183.483
370--Commerce and Housing Credit:
  BA..........................................................      11.262       5.212       7.228       8.155       5.714       5.367       5.123       4.663       4.190       3.783       3.628       3.281       31.587       51.132
  OT..........................................................      -0.385       2.281       3.286       3.462       0.550      -0.608      -1.377      -1.844      -2.679      -3.669      -4.219      -4.526        5.313      -11.624
Discretionary:
  BA..........................................................       0.693       0.150      -0.496      -0.269      -0.554       0.534       0.878       0.767       0.661       0.534       0.625       0.574        0.093        3.254
  OT..........................................................       1.230       0.054       0.092      -0.393      -0.650       0.449       0.686       0.633       0.549       0.414       0.502       0.450        0.184        2.732
Mandatory:
  BA..........................................................      10.569       5.062       7.724       8.424       6.268       4.833       4.245       3.896       3.529       3.249       3.003       2.707       31.494       47.878
  OT..........................................................      -1.615       2.227       3.194       3.855       1.200      -1.057      -2.063      -2.477      -3.228      -4.083      -4.721      -4.976        5.129      -14.356
370 on-budget:
  BA..........................................................       8.191       8.812       7.428       8.655       8.192       8.538       8.655       8.438       8.319       8.298       8.401       8.475       41.468       83.399
  OT..........................................................       0.266       5.881       3.486       3.962       3.028       2.563       2.155       1.931       1.450       0.846       0.554       0.668       15.194       20.643
Discretionary:
  BA..........................................................       0.693       0.150      -0.496      -0.269      -0.554       0.534       0.878       0.767       0.661       0.534       0.625       0.574        0.093        3.254
  OT..........................................................       1.230       0.054       0.092      -0.393      -0.650       0.449       0.686       0.633       0.549       0.414       0.502       0.450        0.184        2.732
Mandatory:
  BA..........................................................       7.498       8.662       7.924       8.924       8.746       8.004       7.777       7.671       7.658       7.764       7.776       7.901       41.375       80.145
  OT..........................................................      -0.964       5.827       3.394       4.355       3.678       2.114       1.469       1.298       0.901       0.432       0.052       0.218       15.010       17.911
400--Transportation:
  BA..........................................................      68.887      64.091      75.783      76.502      77.515      79.931      82.747      85.361      72.323      73.183      74.067      74.987      392.478      772.399
  OT..........................................................      61.862      67.847      71.555      71.581      73.035      74.938      77.285      79.865      79.035      75.687      74.864      75.124      368.394      752.969
Discretionary:
  BA..........................................................      23.820      22.611      25.715      25.040      24.857      25.840      26.936      28.756      26.221      27.040      27.875      28.739      128.388      267.019
  OT..........................................................      57.292      65.184      69.294      69.396      70.986      72.954      75.358      77.909      77.068      73.685      72.816      73.023      357.988      732.489
Mandatory:
  BA..........................................................      45.067      41.480      50.068      51.462      52.658      54.091      55.811      56.605      46.102      46.143      46.192      46.248      264.090      505.380
  OT..........................................................       4.570       2.663       2.261       2.185       2.049       1.984       1.927       1.956       1.967       2.002       2.048       2.101       10.406       20.480
450--Community and Regional Development:
  BA..........................................................      23.361      15.751      14.323      14.398      14.581      14.796      15.005      15.240      15.493      15.752      16.015      16.283       73.103      151.886
  OT..........................................................      12.991      17.569      16.716      16.696      15.553      15.096      14.383      14.558      14.761      15.010      15.252      15.519       78.444      153.543
Discretionary:
  BA..........................................................      23.051      15.225      13.826      13.999      14.188      14.401      14.688      14.921      15.168      15.425      15.686      15.950       71.102      148.252
  OT..........................................................      14.108      17.629      16.787      16.517      15.474      15.059      14.390      14.602      14.835      15.079      15.313      15.569       78.227      153.624
Mandatory:
  BA..........................................................       0.310       0.526       0.497       0.399       0.393       0.395       0.317       0.319       0.325       0.327       0.329       0.333        2.001        3.634
  OT..........................................................      -1.117      -0.060      -0.071       0.179       0.079       0.037      -0.007      -0.044      -0.074      -0.069      -0.061      -0.050        0.217       -0.081
500--Education, Training, Employment, and Social Services:
  BA..........................................................      79.861      82.974      97.610      91.777      92.818      95.959      99.315     102.203     104.059     106.160     108.544     110.143      477.479    1,008.588
  OT..........................................................      70.544      81.531      86.279      91.286      91.964      92.948      95.279      98.470     101.281     103.536     105.570     107.642      457.757      974.256
Discretionary:
  BA..........................................................      71.275      72.875      86.322      81.280      81.575      84.353      87.416      90.037      91.731      93.495      95.632      96.904      420.946      888.745
  OT..........................................................      62.751      71.958      75.843      81.012      81.317      82.028      84.040      87.013      89.584      91.609      93.411      95.171      404.241      861.029
Mandatory:
  BA..........................................................       8.586      10.099      11.288      10.497      11.243      11.606      11.899      12.166      12.328      12.665      12.912      13.239       56.533      119.843
  OT..........................................................       7.793       9.573      10.436      10.274      10.647      10.920      11.239      11.457      11.697      11.927      12.159      12.471       53.516      113.227
550--Health:
  BA..........................................................     205.120     222.913     248.464     264.948     284.216     304.438     326.942     350.373     375.419     401.552     415.777     445.554    1,429.008    3,417.683
  OT..........................................................     196.521     217.881     246.671     264.680     284.024     303.522     325.618     348.889     373.890     400.014     414.359     444.147    1,424.514    3,405.813
Discretionary:
  BA..........................................................      45.789      49.468      52.712      50.667      51.800      52.950      54.299      55.607      56.972      58.387      59.806      61.246      262.428      554.446
  OT..........................................................      39.426      44.349      50.799      49.394      50.423      51.637      52.576      53.801      55.102      56.460      57.851      59.252      254.828      537.294
Mandatory:
  BA..........................................................     159.331     173.445     195.752     214.281     232.416     251.488     272.643     294.766     318.447     343.165     355.971     384.308    1,166.580    2,863.237
  OT..........................................................     157.095     173.532     195.872     215.286     233.601     251.885     273.042     295.088     318.788     343.554     356.508     384.895    1,169.686    2,868.519
570--Medicare:
  BA..........................................................     231.399     248.586     265.178     282.869     322.045     344.178     369.577     395.685     422.684     453.721     488.367     526.981    1,583.847    3,871.285
  OT..........................................................     230.855     248.434     265.443     285.817     318.806     344.448     369.452     395.424     422.942     457.078     484.541     527.237    1,583.966    3,871.188
Discretionary:
  BA..........................................................       3.653       3.798       3.739       3.807       3.906       4.014       4.138       4.353       4.572       4.809       5.089       5.396       19.604       43.823
  OT..........................................................       3.156       3.797       3.726       3.811       3.897       3.992       4.113       4.309       4.524       4.757       5.027       5.327       19.539       43.483
Mandatory:
  BA..........................................................     227.746     244.788     261.439     279.062     318.139     340.164     365.439     391.332     418.112     448.912     483.278     521.585    1,564.243    3,827.462
  OT..........................................................     227.699     244.637     261.717     282.006     314.909     340.456     365.339     391.115     418.418     452.321     479.514     521.910    1,564.427    3,827.705
600--Income Security:
  BA..........................................................     309.367     326.390     319.513     333.810     341.805     349.191     362.006     373.681     385.152     400.573     404.045     418.978    1,706.325    3,688.754
  OT..........................................................     312.511     334.169     324.701     337.157     344.322     350.983     363.115     374.384     385.671     401.003     404.453     419.551    1,720.278    3,705.341
Discretionary:
  BA..........................................................      42.379      44.020      45.712      48.760      50.311      52.004      53.714      55.441      57.295      59.143      61.023      62.884      250.501      546.287
  OT..........................................................      48.081      50.781      51.544      52.373      53.424      54.643      56.116      57.505      58.954      60.560      62.215      63.908      268.100      571.243
Mandatory:
  BA..........................................................     266.988     282.370     273.801     285.050     291.494     297.187     308.292     318.240     327.857     341.430     343.022     356.094    1,455.824    3,142.467
  OT..........................................................     264.430     283.388     273.157     284.784     290.898     296.340     306.999     316.879     326.717     340.443     342.238     355.643    1,452.178    3,134.098
650--Social Security:
  BA..........................................................     462.363     478.882     501.140     521.499     546.735     575.008     606.071     641.105     679.322     720.505     766.154     816.195    2,750.453    6,373.734
  OT..........................................................     455.999     476.888     498.679     518.672     543.640     571.621     602.300     636.939     674.852     715.645     760.812     810.363    2,734.912    6,333.523
Discretionary:
  BA..........................................................       3.523       3.833       4.282       4.363       4.450       4.549       4.665       4.820       4.983       5.151       5.323       5.503       22.309       48.089
  OT..........................................................       3.925       3.859       4.231       4.326       4.435       4.532       4.644       4.794       4.953       5.121       5.291       5.471       22.168       47.798
Mandatory:
  BA..........................................................     458.840     475.049     496.858     517.136     542.285     570.459     601.406     636.285     674.339     715.354     760.831     810.692    2,728.144    6,325.645
  OT..........................................................     452.074     473.029     494.448     514.346     539.205     567.089     597.656     632.145     669.899     710.524     755.521     804.892    2,712.744    6,285.725
650 on-budget:
  BA..........................................................      13.997      13.255      14.294      15.471      16.421      17.919      19.704      21.810      24.283      28.170      31.357      34.347       83.809      223.776
  OT..........................................................      13.988      13.255      14.293      15.471      16.421      17.919      19.704      21.810      24.283      28.170      31.357      34.347       83.808      223.775
Discretionary:
  BA..........................................................       0.019       0.021       0.025       0.025       0.026       0.027       0.027       0.028       0.029       0.030       0.031       0.032        0.130        0.280
  OT..........................................................       0.019       0.021       0.024       0.025       0.026       0.027       0.027       0.028       0.029       0.030       0.031       0.032        0.129        0.279
Mandatory:
  BA..........................................................      13.978      13.234      14.269      15.446      16.395      17.892      19.677      21.782      24.254      28.140      31.326      34.315       83.679      223.496
  OT..........................................................      13.969      13.234      14.269      15.446      16.395      17.892      19.677      21.782      24.254      28.140      31.326      34.315       83.679      223.496
700--Veterans Benefits and Services:
  BA..........................................................      52.126      57.597      63.773      67.125      65.388      63.859      67.645      69.254      70.967      75.643      72.592      77.429      327.790      693.675
  OT..........................................................      50.983      57.486      63.200      66.530      64.970      63.416      67.374      68.899      70.563      75.223      72.071      76.963      325.490      689.209
Discretionary:
  BA..........................................................      24.074      26.532      29.957      28.386      28.812      29.272      29.838      30.796      31.789      32.824      33.887      35.000      146.265      310.561
  OT..........................................................      23.959      26.902      29.600      28.183      28.495      29.024      29.662      30.530      31.497      32.521      33.576      34.663      144.964      307.751
Mandatory:
  BA..........................................................      28.052      31.065      33.816      38.739      36.576      34.587      37.807      38.458      39.178      42.819      38.705      42.429      181.525      383.114
  OT..........................................................      27.024      30.584      33.600      38.347      36.475      34.392      37.712      38.369      39.066      42.702      38.495      42.300      180.526      381.458
750--Administration of Justice:
  BA..........................................................      36.171      38.543      37.757      38.077      37.965      38.442      39.458      40.478      41.580      42.870      44.188      45.557      191.699      406.372
  OT..........................................................      34.310      37.712      40.882      39.324      38.348      38.233      39.109      40.193      41.280      42.453      43.741      45.101      195.896      408.664
Discretionary:
  BA..........................................................      34.676      36.289      33.679      35.912      36.664      37.621      38.694      39.771      40.931      42.288      43.674      45.117      182.570      394.351
  OT..........................................................      33.153      35.484      37.608      36.761      36.862      37.483      38.455      39.596      40.741      41.977      43.331      44.764      187.169      397.578
Mandatory:
  BA..........................................................       1.495       2.254       4.078       2.165       1.301       0.821       0.764       0.707       0.649       0.582       0.514       0.440        9.129       12.021
  OT..........................................................       1.157       2.228       3.274       2.563       1.486       0.750       0.654       0.597       0.539       0.476       0.410       0.337        8.727       11.086
800--General Government:
  BA..........................................................      18.384      18.195      20.012      20.341      22.396      21.147      21.646      21.957      22.706      23.469      24.267      25.138      105.542      223.079
  OT..........................................................      17.380      18.120      19.876      20.420      22.225      20.897      21.423      21.515      22.223      22.957      23.892      24.582      104.841      220.010
Discretionary:
  BA..........................................................      15.602      15.702      17.102      17.364      17.760      18.181      18.669      19.303      19.977      20.656      21.360      22.094       89.076      192.466
  OT..........................................................      14.640      15.570      16.783      17.479      17.648      17.956      18.306      18.849      19.500      20.161      20.853      21.571       88.172      189.106
Mandatory:
  BA..........................................................       2.782       2.493       2.910       2.977       4.636       2.966       2.977       2.654       2.729       2.813       2.907       3.044       16.466       30.613
  OT..........................................................       2.740       2.550       3.093       2.941       4.577       2.941       3.117       2.666       2.723       2.796       3.039       3.011       16.669       30.904
900--Net Interest:
  BA..........................................................     170.955     155.592     166.095     203.823     230.541     243.499     252.354     259.782     263.974     267.195     267.392     261.100    1,096.312    2,415.755
  OT..........................................................     170.957     155.592     166.095     203.823     230.541     243.499     252.354     259.782     263.974     267.195     267.392     261.100    1,096.312    2,415.755
Discretionary:
  BA..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
  OT..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
Mandatory:
  BA..........................................................     170.955     155.592     166.095     203.823     230.541     243.499     252.354     259.782     263.974     267.195     267.392     261.100    1,096.312    2,415.755
  OT..........................................................     170.957     155.592     166.095     203.823     230.541     243.499     252.354     259.782     263.974     267.195     267.392     261.100    1,096.312    2,415.755
900 on-budget:
  BA..........................................................     247.775     239.682     255.775     301.673     339.281     364.919     387.674     410.022     430.164     450.345     468.452     480.870    1,649.322    3,889.175
  OT..........................................................     247.777     239.682     255.775     301.673     339.281     364.919     387.674     410.022     430.164     450.345     468.452     480.870    1,649.322    3,889.175
Discretionary:
  BA..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
  OT..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
Mandatory:
  BA..........................................................     247.775     239.682     255.775     301.673     339.281     364.919     387.674     410.022     430.164     450.345     468.452     480.870    1,649.322    3,889.175
  OT..........................................................     247.777     239.682     255.775     301.673     339.281     364.919     387.674     410.022     430.164     450.345     468.452     480.870    1,649.322    3,889.175
920--Allowances:
  BA..........................................................       0.000       0.115     -16.122      -5.943      -2.104      -1.467      -6.263     -19.939     -41.290     -19.883     -23.031     -27.371      -31.899     -163.413
  OT..........................................................       0.000       0.115      -8.342      -6.134      -5.959      -3.698      -7.163     -17.617     -38.356     -16.729     -19.546     -24.228      -31.297     -147.771
Discretionary:
  BA..........................................................       0.000       0.115     -15.202      -5.623      -1.784      -1.147      -5.943     -19.619     -40.970     -19.563     -22.711     -27.051      -29.699     -159.613
  OT..........................................................       0.000       0.115      -7.763      -5.685      -5.657      -3.381      -6.843     -17.297     -38.036     -16.409     -19.226     -23.908      -29.330     -144.204
Mandatory:
  BA..........................................................       0.000       0.000      -0.920      -0.320      -0.320      -0.320      -0.320      -0.320      -0.320      -0.320      -0.320      -0.320       -2.200       -3.800
  OT..........................................................       0.000       0.000      -0.579      -0.449      -0.302      -0.317      -0.320      -0.320      -0.320      -0.320      -0.320      -0.320       -1.967       -3.567
950--Undistributed Offsetting Receipts:
  BA..........................................................     -47.806     -50.513     -52.926     -63.411     -69.375     -61.259     -65.185     -66.882     -69.937     -73.259     -78.640     -82.068     -312.156     -682.942
  OT..........................................................     -47.392     -50.513     -52.926     -63.411     -69.375     -61.259     -65.185     -66.882     -69.937     -73.259     -78.640     -82.068     -312.156     -682.942
Discretionary:
  BA..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
  OT..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
Mandatory:
  BA..........................................................     -47.806     -50.513     -52.926     -63.411     -69.375     -61.259     -65.185     -66.882     -69.937     -73.259     -78.640     -82.068     -312.156     -682.942
  OT..........................................................     -47.392     -50.513     -52.926     -63.411     -69.375     -61.259     -65.185     -66.882     -69.937     -73.259     -78.640     -82.068     -312.156     -682.942
950 on-budget:
  BA..........................................................     -38.514     -41.104     -42.894     -52.608     -57.884     -49.087     -52.121     -52.962     -55.108     -57.359     -62.012     -64.358     -254.594     -546.393
  OT..........................................................     -38.514     -41.104     -42.894     -52.608     -57.884     -49.087     -52.121     -52.962     -55.108     -57.359     -62.012     -64.358     -254.594     -546.393
Discretionary:
  BA..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
  OT..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
Mandatory:
  BA..........................................................     -38.514     -41.104     -42.894     -52.608     -57.884     -49.087     -52.121     -52.962     -55.108     -57.359     -62.012     -64.358     -254.594     -546.393
  OT..........................................................     -38.514     -41.104     -42.894     -52.608     -57.884     -49.087     -52.121     -52.962     -55.108     -57.359     -62.012     -64.358     -254.594     -546.393
Total:
  BA..........................................................   2,085.573   2,162.789   2,260.114   2,390.819   2,531.170   2,656.404   2,782.913   2,889.448   2,970.900   3,125.270   3,227.301   3,366.670   12,621.420   28,201.009
  OT..........................................................   2,010.950   2,147.924   2,245.894   2,371.946   2,490.782   2,607.468   2,733.603   2,849.302   2,948.361   3,105.447   3,191.109   3,338.397   12,449.692   27,882.308
Discretionary:
  BA..........................................................     734.713     772.411     791.381     816.945     848.002     881.539     910.979     916.981     909.590     950.790     968.401     984.394    4,248.847    8,979.003
  OT..........................................................     734.405     809.372     837.164     857.489     876.104     901.663     933.724     950.277     949.739     991.328     999.948   1,019.939    4,406.144    9,317.374
Mandatory:
  BA..........................................................   1,350.860   1,390.378   1,468.733   1,573.874   1,683.168   1,774.865   1,871.933   1,972.467   2,061.310   2,174.480   2,258.900   2,382.276    8,372.573   19,222.006
  OT..........................................................   1,276.545   1,338.552   1,408.730   1,514.457   1,614.678   1,705.805   1,799.879   1,899.025   1,998.622   2,114.119   2,191.161   2,318.458    8,043.549   18,564.934
Total on-budget:
  BA..........................................................   1,720.248   1,794.261   1,873.180   1,993.944   2,123.565   2,236.078   2,348.462   2,438.088   2,501.009   2,636.500   2,714.965   2,827.496   10,575.229   23,693.287
  OT..........................................................   1,655.288   1,781.390   1,861.420   1,977.898   2,086.272   2,190.529   2,302.923   2,402.108   2,482.940   2,621.537   2,684.115   2,805.055   10,419.041   23,414.796
Discretionary:
  BA..........................................................     731.209     768.599     787.124     812.607     843.578     877.017     906.341     912.189     904.636     945.669     963.109     978.923    4,226.668    8,931.194
  OT..........................................................     730.499     805.534     832.957     853.188     871.695     897.158     929.107     945.511     944.815     986.237     994.688   1,014.500    4,384.105    9,269.855
Mandatory:
  BA..........................................................     989.039   1,025.662   1,086.056   1,181.337   1,279.987   1,359.061   1,442.120   1,525.899   1,596.373   1,690.831   1,751.856   1,848.573    6,348.561   14,762.093
  OT..........................................................     924.789     975.856   1,028.463   1,124.710   1,214.577   1,293.371   1,373.816   1,456.597   1,538.125   1,635.300   1,689.427   1,790.555    6,034.937   14,144.941
Revenues......................................................   1,853.173   1,865.468   1,958.615   2,153.829   2,321.376   2,479.341   2,619.660   2,762.435   2,897.122   3,102.068   3,292.730   3,497.075   11,532.821   27,084.251
Revenues on-budget............................................   1,337.852   1,333.861   1,400.789   1,566.044   1,702.314   1,828.213   1,935.251   2,043.323   2,141.398   2,309.946   2,463.192   2,627.425    8,432.611   20,017.895
Deficit/Surplus...............................................    -157.777    -282.456    -287.279    -218.117    -169.406    -128.127    -113.943     -86.867     -51.239      -3.379     101.621     158.678     -916.871     -798.057
  On-budget...................................................    -317.436    -447.529    -460.631    -411.854    -383.958    -362.316    -367.672    -358.785    -341.542    -311.591    -220.923    -177.630   -1,986.430   -3,396.901
  Off-budget..................................................     159.659     165.073     173.352     193.737     214.552     234.189     253.729     271.918     290.303     308.212     322.544     336.308    1,069.559    2,598.844
Notes and Miscellaneous Info:
Revenues:
  On-budget...................................................   1,337.852   1,333.861   1,400.789   1,566.044   1,702.314   1,828.213   1,935.251   2,043.323   2,141.398   2,309.946   2,463.192   2,627.425    8,432.611   20,017.895
  Off-budget..................................................     515.321     531.607     557.826     587.785     619.062     651.128     684.409     719.112     755.724     792.122     829.538     869.650    3,100.210    7,066.356
Outlays:
  On-budget:
    BA........................................................   1,720.248   1,794.261   1,873.180   1,993.944   2,123.565   2,236.078   2,348.462   2,438.088   2,501.009   2,636.500   2,714.965   2,827.496   10,575.229   23,693.287
    OT........................................................   1,655.288   1,781.390   1,861.420   1,977.898   2,086.272   2,190.529   2,302.923   2,402.108   2,482.940   2,621.537   2,684.115   2,805.055   10,419.041   23,414.796
  Off-budget:
    BA........................................................     365.325     368.528     386.934     396.875     407.605     420.326     434.451     451.360     469.891     488.770     512.336     539.174    2,046.191    4,507.722
    OT........................................................     355.662     366.534     384.474     394.048     404.510     416.939     430.680     447.194     465.421     483.910     506.994     533.342    2,030.651    4,467.512
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                         FUNCTIONS AND REVENUES

      Pursuant to section 301(a)(3) of the Budget Act, the 
budget resolution must set appropriate levels for each major 
functional category based on the 302(a) allocations and the 
budgetary totals.
      The respective levels of the House resolution, the Senate 
amendment, and the Conference Agreement for each major budget 
function and revenue totals are discussed in the following 
section. The Conference Agreement provides aggregate 
discretionary spending in 2004 of $784.460 billion in budget 
authority (BA) and $860.752 billion in outlays.
      These two aggregate numbers are allocated to the 
Appropriations Committees to be suballocated to their 13 
individual appropriation subcommittees.

                                Revenue

      The component of the budget resolution classified as 
revenue reflects 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, 
such as the gasoline tax; various other taxes, such as estate 
and gift taxes; and social insurance taxes, except for Social 
Security. Customs duties, tariffs, and other miscellaneous 
receipts also are included in the revenue function.
      Social insurance taxes collected for the Social Security 
system--the Old Age and Survivors and Disability Insurance 
[OASDI] payroll tax--are 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 reflected in the budget 
resolution.
House Resolution
      The House resolution calls for on-budget revenue of $1.32 
trillion in fiscal year 2003; $1.35 trillion in 2004; $8.23 
trillion from 2004 through 2008; and $19.48 trillion from 2004 
through 2013. When off-budget Social Security taxes are added, 
total revenue is estimated to be $1.86 trillion in fiscal year 
2003, $1.91 trillion in 2004, $11.33 trillion over the next 5 
years, and $26.55 trillion over the next 10 years.
      The resolution directs the Committee on Ways and Means to 
report legislation to the House floor by 11 April 2003, making 
adjustments in current law to effect a reduction in revenue of 
$35.4 billion in 2003; $112.8 billion in 2004; $387.7 billion 
from 2004 through 2008; and $698.3 billion in 2003-2013. This 
``reconciles'' an economic growth and job creation plan similar 
to the President's under the expedited reconciliation rules of 
the Budget Act. (Also reconciled to the Ways and Means 
Committee is $27.5 billion in new mandatory spending authority 
to cover the refundable component of an accelerated increase in 
the child tax credit.)
      The resolution also assumes the permanent extension of 
the expiring tax cuts in the Economic Growth and Tax Relief 
Reconciliation Act of 2001 that otherwise will expire in 2010. 
This will reduce revenue over 11 years by $601.9 billion below 
the baseline. This adjustment is not reconciled.
      Finally, the budget accommodates, but does not reconcile, 
$49.9 billion in additional tax relief over the next 11 years. 
Policies would be determined by the Committee on Ways and 
Means, but could include incentives for charitable giving, 
affordable single-family housing, and energy production, 
conservation, and reliability; simplifying the tax laws; and 
other House policies. Tariff and other revenue effects of 
various trade initiatives are also possible.
Senate Amendment
      The Senate amendment assumes an overall reduction in 
revenues of $802.2 billion over the 11-year period, 2003-13. 
The Senate amendment instructs the Finance Committee to report 
legislation by 8 April 2003 to reduce revenues by $322.5 
billion over 2003-2013 and to increase direct spending related 
to tax policy changes by $27.5 billion over 2003-13 (reflected 
in Function 600). The Senate amendment assumes, but does not 
reconcile, an additional $479.6 billion in tax relief over 11 
years with a related, but unreconciled, increase in direct 
spending (related to tax policy changes) of $22.3 billion over 
11 years (reflected in Function 600).
      The Committee-reported resolution reconciled the Finance 
Committee for a reduction in revenues and an increase in 
outlays consistent with President Bush's jobs and growth tax 
relief plan. The President's plan provides tax relief of $698 
billion over the 2003-13 period. It includes three main 
components: tax relief for working families (by speeding up 
individual income tax marginal rate reductions already in law, 
accelerating marriage penalty relief already in law, increasing 
the child credit immediately to $1,000, and increasing the 
alternative minimum tax exemption amount); elimination of the 
double taxation of dividends; and a permanent increase in small 
business expensing. Since the child credit is partially 
refundable, the Committee-reported resolution assumed outlay 
increases sufficient to accommodate the President's growth 
plan--$27.5 billion in new spending over the next 11 years.
      During consideration of the Committee-reported 
resolution, the Senate adopted several amendments that had the 
combined effect of reducing the revenue reconciliation 
instruction to the Finance Committee to $322.5 billion over 11 
years.
      The Committee-reported resolution assumed, but did not 
reconcile, the permanent extension of the provisions of the 
Economic Growth and Tax Relief Reconciliation Act of 2001 
[EGTRRA], which are currently scheduled to expire after 2010. 
The 11-year tax relief assumption for the EGTRRA extensions is 
$601.9 billion, with $592.6 billion of the revenue loss (98 
percent) occurring in years 2011-13. The permanent extension of 
the EGTRRA provisions also results in an increase in direct 
spending of $22.3 billion over 11 years. The Committee-reported 
resolution also assumed, but did not reconcile, about $13 
billion in tax relief over 11 years from several measures 
expected to be considered in the upcoming year.
      During the Senate's consideration of the Committee-
reported resolution, the Senate adopted eight amendments 
affecting the amount of tax relief assumed outside of 
reconciliation. The Senate adopted one amendment providing for 
$45 billion in additional tax relief consistent with making the 
repeal of the estate tax permanent beginning in 2009. The 
Senate also adopted seven amendments that reduced the level of 
tax relief assumed outside of reconciliation by $181 billion. 
The Committee-reported resolution assumed $614.7 billion of tax 
relief outside of reconciliation; the Senate amendment assumes 
$478.7 billion of tax relief outside of reconciliation.
Conference Agreement
      The Conference Agreement calls for a jobs and growth plan 
with goals similar to the President's proposal: supporting 
broad, sustained economic growth and job creation.
      With these goals, the Conference Agreement assumes $626 
billion over the 2003-13 period for tax relief and associated 
outlays for a jobs and growth plan. The Agreement directs the 
Senate Finance Committee to report legislation by 8 May 2003 to 
reduce revenue by $522.524 billion over 2003-2013, and to 
increase direct spending related to tax policy changes by 
$27.476 billion over 2003-2013 (reflected in function 600). The 
Agreement also directs the House Ways and Means Committee to 
report legislation by 30 May 2003 to reduce revenue by $535.0 
billion over 2003-13, and to increase direct spending related 
to tax policy changes by $15.0 billion over 2003-2013.
      The Conference Agreement assumes, but does not reconcile, 
an additional $690.9 billion in tax relief over 11 years, and 
associated increases in direct spending. The assumed additional 
tax relief could accommodate the permanent extension of the 
provisions of the Economic Growth and Tax Relief Reconciliation 
Act of 2001 [EGTRRA], the tax provisions of energy policy 
legislation, the revenue impacts of trade legislation, and 
several miscellaneous tax provisions proposed by the President 
or Congress.

                     National Defense: Function 050

Function Summary
      The National Defense function 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 
Department of Defense [DOD] military activities. The function 
also includes pay and benefits for military and civilian 
personnel; research, development, testing, and evaluation; 
procurement of weapon systems; military construction and family 
housing; and operations and maintenance of the defense 
establishment. The remaining funding in the function is for 
atomic energy defense activities of the Department of Energy, 
and other defense-related activities.
House Resolution
      The House resolution calls for $400.6 billion in BA and 
$400.9 billion in outlays in fiscal year 2004, an increase of 
2.0 percent in BA compared with fiscal year 2003. The function 
totals are $2,202.1 billion in BA and $2,142.7 billion in 
outlays over 5 years; and $4,814.0 billion in BA and $4,704.4 
billion in outlays over 10 years.
      The BA and outlay funding levels for National Defense 
will support critical military and homeland security 
initiatives, and are consistent with the President's 
recommendations. The resolution assumes $70 million in 
additional mandatory BA to permit proceeds from facilities that 
were acquired, constructed, or improved with commissary 
surcharges or nonappropriated funds, and that were closed under 
Base Realignment and Closure authority, to be reapplied to 
nonappropriated fund activities without an appropriation.
Senate Amendment
      For discretionary programs, the Senate amendment assumes 
the President's request for National Defense in 2004 totalling 
$400.1 billion in BA and $400.6 billion in outlays for 2004. 
This is an increase of $7.9 billion in BA (2.0 percent) and 
$14.2 billion in outlays (3.7 percent) from the 2003 level.
      For 2003, the Committee-reported resolution assumed the 
full-year appropriations already enacted. An amendment to the 
resolution adopted by the Senate assumed an increase of $3.0 
billion in BA and outlays in 2003 to provide pay and benefits 
for active duty, National Guard and Reserve forces, and to 
modernize National Guard and Reserve equipment and weapons.
      For defense activities in the Department of Defense only, 
the Senate amendment assumes $380.8 billion in discretionary BA 
in 2004, an increase of $6.2 billion (1.6 percent) above the 
2003 level of $374.6 billion.
      Within DOD, the Senate amendment assumes $231.9 billion 
in discretionary BA for readiness accounts (military personnel 
and operations and maintenance) in 2004. This represents an 
increase of $2.4 billion in BA (1.0 percent) above the 2003 
level of $229.5 billion. These appropriations would support an 
active duty end strength of 1,388,100 and a Selected Reserves 
strength of 863,000. It would also support pay raises ranging 
from 2.0 percent to 6.3 percent, targeted by rank and years of 
service.
      The Senate amendment also assumes $136.2 billion for 
investment accounts (procurement and research, development, 
testing, and evaluation) in 2004. This represents an increase 
of $4.8 billion in BA (3.9 percent) above the 2003 appropriated 
level of $131.4 billion. Major purchases include a Virginia 
Class submarine, 3 DDG-51 destroyers, 42 F/A-18E/F fighter 
aircraft, and 22 F-22 fighter aircraft.
      For military construction and family housing, the Senate 
amendment assumes $9.1 billion in discretionary budget 
authority for 2004 representing a 13.8-percent decrease from 
the 2003 level of $10.5 billion.
      During floor consideration, the Senate adopted an 
amendment that would allow the Appropriations Committee to 
provide up to $100 billion for the costs associated with 
disarming Iraq.
      For defense activities in the Department of Energy, the 
Senate amendment assumes $16.9 billion in discretionary BA in 
2004, representing an increase of $1.1 billion (6.9 percent) 
above the 2003 enacted level of $15.8 billion.
      The Senate amendment assumes $8.8 billion in 
discretionary BA for the National Nuclear Security 
Administration in 2004, representing an increase of $796 
million (10.0 percent) above the 2003 enacted level of $8.0 
billion.
      The Senate amendment assumes $7.7 billion in 
discretionary BA for the Department of Energy's environmental 
and other defense activities in 2004, representing an increase 
of $185 million (2.5 percent) above the 2003 enacted level of 
$7.6 billion.
      The Senate-reported resolution assumed no mandatory 
increases or decreases in this function. Of note, the Senate-
reported amendment assumed full funding for the so-called 
Purple Heart Plus program, which was included in last year's 
Defense Authorization Act. The provision allows all disabled 
military retirees whose disabilities are a direct result of 
combat, and those most severely disabled (60 percent or 
greater) military retirees whose disabilities are a direct 
result of combat-related injury, to receive their full military 
retirement pay as well as a special compensation equal to the 
amount of veterans' disability compensation without offset. The 
Senate amendment reflects an amendment to the Committee-
reported resolution adopted by the Senate to cover the 
incremental mandatory cost of phased-in concurrent receipt of 
retirement pay and disability for all veterans with service-
related disabilities rated at 60 percent or higher ($182 
million in BA and outlays in 2004, and $12.8 billion in BA and 
outlays over the 2004-13 period).
Conference Agreement
      The Conference Agreement assumes enactment of the fiscal 
year 2003 supplemental appropriations bill for addressing the 
conflict in Iraq. The provision allows an adjustment for the 
finally enacted level.
      The Agreement calls for function totals of $400.5 billion 
in BA and $400.9 billion in outlays for fiscal year 2004; 
$2,202.1 billion in BA and $2,142.7 billion in outlays over 5 
years; and $4,758.2 billion in BA and $4,658.3 billion in 
outlays over 10 years.
      The discretionary levels in this function are consistent 
with the President's request. The levels will support military 
forces capable of prevailing decisively in the near term, and 
accommodate the military's longer-term transformation goals.

                  International Affairs: Function 150

Function Summary
      As part of the Global War on Terrorism, the Department of 
State and international assistance programs play a vital role 
in maintaining and expanding support of the international 
coalition against terrorism. Funds distributed through the 
International Affairs function provide for international 
development and humanitarian assistance; international security 
assistance; the conduct of foreign affairs; foreign information 
and exchange activities; and international financial programs. 
The major departments and agencies in this function include the 
Department of State, the Department of the Treasury, and the 
United States Agency for International Development [USAID].
House Resolution
      The budget resolution calls for $24.8 billion in BA and 
$23.7 billion in outlays in fiscal year 2004, an increase of 
9.8 percent in BA compared with fiscal year 2003. The function 
totals are $149.9 billion in BA and $128.9 billion in outlays 
over 5 years, and $326.6 billion in BA and $283.5 billion in 
outlays over 10 years.
      The House resolution calls for $2 billion as the first 
installment toward the President's Emergency Plan for AIDS 
Relief, a 5-year, $15-billion initiative to turn the tide in 
the global effort to combat the HIV/AIDS pandemic. This 
initiative--funded through USAID, the Department of Health and 
Human Services, and the Centers for Disease Control--virtually 
triples U.S. funding to fight the international AIDS pandemic. 
The resolution also recommends funds sufficient for the 
President's proposal to create a new Government corporation--
the Millennium Challenge Corporation--to administer a $1.3 
billion fund designed to promote just governance and sound 
free-market economic policies in International Development 
Association-eligible countries (with yearly per-capita incomes 
below $1,435).
Senate Amendment
      For discretionary programs, the Senate amendment assumes 
the President's request for 2004 totaling $28.7 billion in BA 
and $26.8 billion in outlays. This represents an increase of 
$3.2 billion in BA (12.8 percent) and $0.8 billion in outlays 
(3.0 percent) from the 2003 level.
      The Senate amendment assumes $12.5 billion in 
discretionary BA for International Development and Humanitarian 
Assistance, an increase of $2.1 billion (20.1 percent) above 
the 2003 appropriated level of $10.4 billion. Within 
International Development and Humanitarian Assistance, the 
Senate amendment assumes a new development assistance 
organization, called the Millennium Challenge Corporation, with 
an initial funding level of $1.3 billion for 2004 and $14.3 
billion over 2004-13. The Senate amendment also assumes a new 
Global AIDS Initiative ($450 million in 2004 and $22.3 billion 
over 10 years), and a new fund for dealing with famine ($200 
million in 2004, and $2.2 billion over 10 years).
      The Senate amendment assumes $7.6 billion in 
discretionary BA for International Security Assistance, an 
increase of $0.9 billion (13.2 percent) above the 2003 
appropriated level of $6.7 billion. Within International 
Security Assistance, the Senate amendment assumes the creation 
of a new fund to deal with Complex Foreign Crises, with initial 
funding of $100 million for 2004.
      The Senate amendment assumes $7.5 billion in 
discretionary BA for the Conduct of Foreign Affairs, an 
increase of $636 million (9.2 percent) above the 2003 
appropriated level of $6.9 billion. The Senate amendment also 
assumes $983 million in discretionary BA for Foreign 
Information and Exchange Activities, an increase of $152 
million (18.3 percent) above the 2003 appropriated level of 
$831 million.
      The Senate amendment assumes no mandatory increases or 
decreases in this function.
Conference Agreement
      The Conference Agreement calls for $25.7 billion in BA 
and $24.2 billion in outlays in fiscal year 2004; $155.9 
billion in BA and $133.7 billion in outlays over 5 years; and 
$341.6 billion in BA and $296.4 billion in outlays over 10 
years. The Conference Agreement fully accommodates the 
President's request for this function. This includes funding 
for the President's Millennium Challenge Corporation initiative 
and the Global AIDS Initiative.

          General Science, Space, and Technology: Function 250

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 reflects 
general science funding, including the budgets for the National 
Science Foundation [NSF], and the fundamental science programs 
of the Department of Energy [DOE].
House Resolution
      The House resolution calls for $22.8 billion in BA and 
$22.3 billion in outlays in fiscal year 2004, a decrease of 1.6 
percent in BA compared with fiscal year 2003. The function 
totals are $121.8 billion in BA and $118.7 billion in outlays 
over 5 years; and $260.8 billion in BA and $254.1 billion in 
outlays over 10 years.
Senate Amendment
      For discretionary programs the Senate amendment assumes a 
discretionary total of $23.6 billion in BA and $22.6 billion in 
outlays for 2004. This represents an increase of $0.5 billion 
(2.3 percent) in BA and $1.2 billion (5.5 percent) in outlays 
from the 2003 level. The Senate amendment includes the 
following specific assumptions.
      For NASA, the Senate amendment assumes funding the 
President's request of $14.5 billion for Function 250 
activities (this excludes NASA aeronautics funding that falls 
in Function 400). Included is $6.7 billion for Science, 
Aeronautics, and Exploration and $7.8 billion for Space Flight 
Capabilities. The President's request of $4.0 billion (on a 
full-cost basis) is assumed for the Space Shuttle.
      The Senate amendment assumes funding the President's 
request of $5.4 billion in discretionary funding for National 
Science Foundation activities, a 3.2-percent increase over the 
2003 level.
      For Department of Energy science programs, the Senate 
amendment assumes a $100-million increase over the President's 
request, bringing total funding for DOE science programs to 
$3.4-billion in 2004, a 4.6-percent increase over the 2003 
level.
      The Senate amendment includes $273 million for the 
Department of Homeland Security in 2004. These funds support 
the advance of homeland security through scientific research.
      The Senate amendment assumes no mandatory increases or 
decreases in this function.
Conference Agreement
      The Conference Agreement for Function 250 calls for $23.9 
billion in BA and $22.8 billion in outlays in fiscal year 2004. 
The functional totals are $126.5 billion in BA and $122.3 
billion in outlays over 5 years, and $270.5 billion in BA and 
$262.2 billion in outlays over 10 years. The Agreement 
accommodates an increase of $324 million above the 
administration's request for NSF research and related 
activities. The Agreement also supports a $100-million increase 
over the administration's request for DOE science programs.

                          Energy: Function 270

Function Summary
      The Energy function reflects civilian energy and 
environmental activities and programs of the Federal 
Government. Through this function, spending is provided for 
energy supply programs, such as solar and renewable, fossil and 
nuclear research at the Department of Energy [DOE]; rural 
electricity and telecommunications loans, administered through 
the Rural Utilities Service of the Department of Agriculture; 
electric power generation and transmission programs of the 
Power Marketing Administrations (the Southeastern Power 
Administration, the Southwestern Power Administration, the 
Western Area Power Administration, and the Bonneville Power 
Administration); and power generation and transmission programs 
of the Tennessee Valley Authority. This function also provides 
funds for energy conservation programs; emergency energy 
preparedness (mainly the Strategic Petroleum Reserve); and 
energy information, policy, and regulation programs, including 
spending by the Office of the Secretary of Energy and the 
operations of the Federal Energy Regulatory Commission, the 
Nuclear Regulatory Commission and the U.S. Enrichment 
Corporation.
      Function 270 does not include DOE's national security 
activities--the National Nuclear Security Administration--which 
are in Function 050 (Defense), or its basic research and 
science activities, which are in Function 250 (General Science, 
Space, and Technology).
House Resolution
      The House resolution calls for $2.6 billion in BA and 
$0.9 billion in outlays in fiscal year 2004, an increase of 25 
percent in BA compared with fiscal year 2003. The function 
totals are $13.3 billion in BA and $5.6 billion in outlays over 
5 years, and $29.3 billion in BA and $15.6 billion in outlays 
over 10 years.
      Pursuant to the Homeland Security Act of 2002, the 
functions of the National Simulation and Analysis Center and 
the energy security and assurance programs of the Department of 
Energy are transferred to the new Department's Directorate of 
Information Analysis and Infrastructure Protection.
      The resolution accommodates resources outside the 
Department of Homeland Security necessary for certain aspects 
of homeland security. A sum of $619 million is assumed in 
fiscal year 2004 for the Nuclear Regulatory Commission to 
continue to review and strengthen NRC's physical facilities and 
information technology infrastructure to enhance nuclear plant 
security. Of this amount, $572 million is provided by fees and 
receipts.
Senate Amendment
      The Senate amendment assumes spending in this function 
would total $2.6 billion in BA and $0.9 billion in outlays for 
2004. This represents an increase of $0.6 billion in BA (7 
percent), and $0.4 billion in outlays from the 2003 level. The 
Senate amendment includes the following specific assumptions.
      For discretionary programs, the Senate amendment assumes 
a total of $3.7 billion in BA and $3.6 billion in outlays for 
2004. This represents an increase of $0.4 billion (13 percent) 
in BA above the 2003 level.
      The Senate amendment assumes $881 million for non-defense 
environmental management activities. This is an increase of 
$213 million, or 32 percent, above the 2003 enacted level. (An 
additional $6.3 billion for environmental management activities 
is included in Function 050.)
      The Senate amendment assumes $802 million for Energy 
Supply activities. This is $106 million (15 percent) above the 
2003 enacted level. This increase includes funding for the 
President's Freedom Fuel Initiative, which would help reverse 
America's growing dependence on foreign oil, by providing funds 
for research for a commercially viable hydrogen-powered fuel 
cell technology.
      The Senate amendment assumes no mandatory increases or 
decreases in this function.
Conference Agreement
      The Conference Agreement for Function 270 calls for $2.6 
billion in BA and $0.9 billion in outlays in fiscal year 2004. 
The functional totals are $13.8 billion in BA and $5.6 billion 
in outlays over 5 years, and $30.3 billion in BA and $15.7 
billion in outlays over 10 years. The Conference Agreement 
fully supports the President's budget request for this 
function.

            Natural Resources and Environment: Function 300

Function Summary
      Programs within Function 300 consist 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].
House Resolution
      The House resolution calls for $29.2 billion in BA and 
$29.9 billion in outlays in fiscal year 2004. The function 
totals are $154.1 billion in BA and $154.4 billion in outlays 
over 5 years, and $331.0 billion in BA and $327.9 billion in 
outlays over 10 years.
      The resolution assumes legislation allowing the Bureau of 
Land Management to use updated management plans to identify 
publicly owned areas suitable for sale; the permanent extension 
of the Recreation Fee Program, which allows parks, refuges, 
forests, and other publicly-owned units to spend fees within 
the units from which they are collected; legislation to prevent 
the United Mine Workers of America Combined Benefit Fund from 
financial crisis by transferring to it any additional interest 
from the Abandoned Mine Land Reclamation Fund; the Water 
Resources Development Act of 2002, which authorizes the Corps 
of Engineers to conduct water resource studies and undertake 
specified projects and programs for flood control, inland 
navigation, shoreline protection, and environmental 
restoration; and the Central Utah Project [CUP] Completion Act, 
which clarifies and streamlines completion of project goals. 
The CUP provides water for agricultural, industrial, and 
municipal uses.
Senate Amendment
      The Senate amendment assumes spending in this function of 
$35.3 billion in BA and $31.4 billion in outlays for 2004. This 
represents an increase of $4.4 billion in BA (14 percent), and 
$2.4 billion in outlays from the 2003 level. The Senate 
amendment includes the following specific assumptions.
      For discretionary programs, the Senate amendment assumes 
a total of $32.8 billion in BA and $29.5 billion in outlays for 
2004. This represents an increase of $3.6 billion (12 percent) 
in BA above the 2003 level.
      The Senate amendment assumes $3.1 billion for the 
National Fire Plan, which is $880 million above the President's 
request. This reflects an amendment to the resolution adopted 
by the Senate that added $500 million to the National Fire 
Plan. The Senate believes it is critical to fund the National 
Fire Plan at a realistic level that will allow the Forest 
Service and Department of Interior to pay for wildfire 
suppression, while maintaining its ongoing operations.
      The Senate amendment assumes $900 million for the Land 
and Water Conservation Fund [LWCF], the same as the President's 
budget.
      The Senate amendment assumes $11.3 billion for the 
Environmental Protection Agency. This is $3 billion (36 
percent) above the 2003 enacted level. The Senate did not 
accept the President's cut to the State and Tribal Assistance 
Grants, instead funding them at $6.8 billion, which is $3 
billion more than the 2003 enacted level. (This increase to the 
State and Tribal Assistance Grants is due to an amendment 
adopted by the Senate, which added $3 billion in 2004 to the 
Clean Water and Safe Drinking Water State Revolving Fund.) 
Within the EPA, there is $1.4 billion for Superfund, which is 
$125 million or 9.9 percent more than the 2003 enacted level. 
The Senate amendment also includes $2.2 billion for 
environmental programs and management. This is $122 million, or 
5.8 percent, more than the 2003 enacted level.
      The Senate amendment assumes $4.5 billion for the Corps 
of Engineers, the same as the 2003 level, and $546 million more 
than the President's request. It does not include the 
President's proposal to fund operations and maintenance and 
construction from the Inland Waterways Trust Fund or from the 
Harbor Maintenance Trust Fund.
      The Senate amendment assumes the President's proposal to 
make the Recreation Fee Demonstration Program permanent. This 
program allows the Forest Service and Department of Interior to 
collect entrance fees and use a portion of those fees without 
further appropriation for maintenance and other projects. Over 
10 years, this program would have a net cost of $803 million.
      The Senate amendment reflects the administration's 
proposal for the Federal Land Transaction Facilitation Act. 
This proposal would allow the Bureau of Land Management to use 
updated management plans to identify property suitable for 
disposal as well as allow a certain portion of receipts to be 
used by the BLM for restoration projects. It would cap receipt 
retention at $100 million per year. The proposal costs $86 
million over 10 years.
      The Senate amendment assumes $3.4 billion over 10 years 
for the Conservation Security Program in the Department of 
Agriculture.
Conference Agreement
      The Conference Agreement calls for $31.6 billion in BA 
and $30.8 billion in outlays in fiscal year 2004. The function 
totals are $164.5 billion in BA and $161.9 billion in outlays 
over 5 years, and $348.3 billion in BA and $342.4 billion in 
outlays over 10 years.
      For discretionary programs, the Conference Agreement 
provides for a total of $29.3 billion in BA and $29.0 billion 
in outlays in fiscal year 2004.
      The Conference Agreement recognizes the importance of the 
National Fire Plan and calls for $2.6 billion for the plan, 
$380 million above the President's request. The Congress 
believes it is critical to fund the National Fire Plan at a 
level that will allow the Forest Service and the Department of 
the Interior to pay for wildfire suppression, while maintaining 
their normal operations. In particular, Congress places a 
priority on wildfire suppression; rehabilitation and 
restoration of areas burned during recent fire seasons; and the 
reduction of hazardous fuels, which will help prevent wildfires 
in the future.
      The Conference Agreement accommodates $8.3 billion for 
the Environmental Protection Agency, $250 million greater than 
the 2003 enacted level. The Congress restored funding for the 
State and Tribal Assistance Grants to $3.8 billion, the same as 
the 2003 enacted level. Within the EPA, there is $1.4 billion 
for Superfund, which is $125 million (9.9 percent) more than 
the 2003 enacted level; and $2.2 billion for environmental 
programs and management, which is $122 million (5.8 percent) 
more than the 2003 enacted level.
      The Conference Agreement also accommodates the Senate's 
$4.5 billion for the Corps of Engineers.
      For mandatory programs, the Agreement assumes the 
President's proposal allowing the Forest Service and Department 
of Interior to collect entrance fees and use a portion of those 
fees for maintenance and other projects without further 
appropriation. It also assumes an amendment allowing the Bureau 
of Land Management [BLM] to use updated management plans to 
identify property suitable for disposal, as well as permit a 
certain portion of receipts to be used by the BLM for 
restoration projects. The Agreement also assumes $3.4 billion 
over 10 years for the Conservation Security Program in the 
Department of Agriculture; legislation passed in the House last 
year to authorize the Army Corps of Engineers to conduct water 
resource studies and undertake specific projects and programs 
for flood control, inland navigation, shoreline protection, and 
environmental restoration; and enactment of the Central Utah 
Project Completion Act, which passed in the House last year.

                       Agriculture: Function 350

Function Summary
      The Agriculture function 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.
House Resolution
      The House resolution calls for $24.0 billion in BA and 
$23.4 billion in outlays in fiscal year 2004. The function 
totals are $125.1 billion in BA and $121.5 billion in outlays 
over 5 years, and $240.8 billion in BA and $237.1 billion in 
outlays over 10 years.
      Included in these funding levels is the continuation of 
the 2002 farm bill.
Senate Amendment
      The Senate amendment assumes spending in this function 
would total $24.5 billion in BA and $23.5 billion in outlays 
for 2004. This represents an increase of $39 million in BA over 
the 2003 level.
      For discretionary programs, the Senate amendment assumes 
a total of $5.2 billion in BA and $5.6 billion in outlays for 
2004. This represents a decrease of $0.5 billion or 8.5 percent 
in BA from the 2003 level.
      The Senate amendment assumes the President's request that 
several mandatory agriculture programs will provide 
discretionary savings of $321 million in 2004 and $1.1 billion 
over 10 years.
      The Senate amendment also assumes a decrease of $1.4 
billion over 10 years in the mandatory programs administered by 
the Department of Agriculture.
Conference Agreement
      The conference agreement calls for $24.6 billion in BA 
and $23.7 billion in outlays in fiscal year 2004. The function 
totals are $130.2 billion in BA and $124.5 billion in outlays 
over 5 years, and $255.7 billion in BA and $245.8 billion in 
outlays over 10 years. Included in these funding levels is the 
continuation of the 2002 Farm Bill. The Conference Agreement 
fully supports the President's overall request for this 
function.

               Commerce and Housing Credit: Function 370

Function Summary
      Function 370 includes four components: mortgage credit 
(usually negative BA because receipts tend to exceed the losses 
from defaulted mortgages); the Postal Service (mostly off 
budget); deposit insurance (negligible spending due to deposit 
insurance premiums); and other advancement of commerce (the 
majority of the discretionary and mandatory spending in this 
function).
      The mortgage credit component of this function includes 
housing assistance through the Federal Housing Administration 
[FHA], the Government National Mortgage Association [Ginnie 
Mae], and rural housing programs of the Department of 
Agriculture. The function also includes net Postal Service 
spending and spending for deposit insurance for banks, thrifts, 
and credit unions. Finally, most, but not all, of the Commerce 
Department is provided for in this function 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 [SEC], the Commodity Futures Trading 
Commission, the Federal Trade Commission, the Federal 
Communications Commission [FCC], and the majority of the Small 
Business Administration [SBA].
      More than two-thirds of the spending in Function 370 is 
out of the FCC's Universal Service Fund. Spending from this 
fund exactly offsets the receipts (classified as taxes on the 
revenue side of the budget) that certain telecommunications 
operators charge their customers to promote service to low-
income users and high-cost areas, as well as new services.
House Resolution
      The House resolution calls for $7.4 billion in BA and 
$3.6 billion in outlays in fiscal year 2004, a decline of 16 
percent in BA compared with fiscal year 2003. The function 
totals are $42.0 billion in BA and $16.5 billion in outlays 
over 5 years, and $86.8 billion in BA and $26.6 in outlays over 
10 years.
      For the Department of Homeland Security, $21 million is 
provided for Departmentwide technology investments, as is $9 
million for the Critical Infrastructure Assurance Office under 
Information Analysis and Infrastructure Protection.
      The resolution assumes other funding for homeland 
security purposes of the Commerce Department, including: $83.9 
million for the Bureau of Industry and Security to inhibit the 
global spread of dual-use technologies that could be used in 
biological, chemical, and nuclear weapons of mass destruction 
(formerly the Bureau of Export Administration); $10.3 million 
for the National Institute of Standards and Technology; and 
$3.7 million for the International Trade Administration.
Senate Amendment
      For discretionary programs, the Senate amendment assumes 
discretionary spending in this function would total -$0.5 
billion in BA and $0.1 billion in outlays for 2004. This 
represents a decrease of $0.6 billion in BA, but an increase of 
$38 million in outlays from the 2003 level. The Senate 
amendment includes the following specific assumptions.
      The Senate amendment for 2004 reflects all the 
President's requested increases over 2003 (shown as percentage 
increase) for export control and enforcement (47 percent), the 
activities of the Census Bureau (20 percent), economic and 
statistical analysis (18-percent), and homeland security 
investments in the Department of Commerce (43 percent). The 
Senate amendment also assumes the President's request of $842 
million (an 18-percent increase) for the Securities and 
Exchange Commission to implement the corporate responsibility 
activities under the Sarbanes-Oxley bill.
      The President's budget proposes to eliminate the Advanced 
Technology Program, which would save $0.7 billion over the next 
10 years and is reflected in the Senate amendment. The 
President's proposal to discontinue the Manufacturing Extension 
Program, however, is not assumed by the Senate amendment.
      For mandatory programs, the Senate amendment assumes the 
President's proposal to merge the deposit insurance funds for 
banks and thrifts--the Bank Insurance Fund and the Savings 
Association Insurance Fund. According to CBO estimates, this 
proposal would be nearly budget neutral over the next 10 years.
      The Senate amendment also assumes legislation (S. 380, as 
cleared for the President on 8 April 2003) that would reduce 
the Postal Service payment to the Civil Service Retirement 
[CSRS] trust fund for 2003-05, but then would reinstate and 
redirect the payment to an escrow fund until Congress can enact 
subsequent law regarding how the Postal Service should address 
its retiree health liabilities and other concerns. This 
proposal would increase the unified deficit by $7.3 billion 
over the 2003-13 period. The budgetary effect on the Postal 
Service is reflected in this function, and the effect on the 
receipts of the CSRS fund are shown in Function 950 (a small 
interest effect appears in Function 900).
Conference Agreement
      The Conference Agreement calls for on-budget amounts as 
follows: $7.5 billion in BA and $3.6 billion in outlays in 
fiscal year 2004; $41.9 billion in BA and $15.6 billion in 
outlays over 5 years; and $84.3 billion in BA and $21.5 billion 
in outlays over 10 years. For mandatory programs, the agreement 
assumes a merger of the Bank Insurance Fund and the Savings 
Association Insurance Fund; legislation to pay interest on bank 
deposits with the Federal Reserve; and regulatory relief for 
certain financial services companies. For discretionary 
programs, the Agreement is consistent with the Senate 
amendment.

                      Transportation: Function 400

Function Summary
      This function funds all major Federal transportation 
modes and programs including the Transportation Security 
Administration; 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 [NASA]; the 
Coast Guard; the Maritime Administration; and other 
transportation support activities.
House Resolution
      The House resolution calls for $65.4 billion in BA and 
$69.2 billion in outlays in fiscal year 2004, an increase of 
2.1 percent in BA compared with fiscal year 2003. Function 
totals are $334.2 billion in BA and $338.2 billion in outlays 
over 5 years, and $698.9 billion in BA and $700.8 billion in 
outlays over 10 years.
      The resolution assumes an increase in Federal-aid Highway 
contract authority and obligation limitation from $32.1 billion 
in 2004 to $39.0 billion in 2013; a freeze of Transit Category 
contract authority and obligation limitation at $5.7 billion; 
transfer of the receipts from the 2.5-cent gasohol deficit 
reduction tax from the General Fund to the Highway Trust Fund; 
and establishment of a contingency procedure to increase 
spending above the level in the budget resolution on highways, 
highway safety, and transit should additional resources be made 
available to the Highway Trust Fund.
Senate Amendment
      For Function 400, the Senate amendment includes $75.8 
billion in BA and $71.6 billion in outlays for 2004. This 
represents an increase of $11.7 billion in BA, or 18 percent.
      The Senate amendment includes major increases in the 
Federal-aid Highways program, reflecting an amendment adopted 
by the Senate that set contract authority at levels that cannot 
be sustained with trust fund receipts under current law. For 
2004, the Senate amendment assumes an obligation limitation of 
$35.6 billion, an 11-percent increase from the Committee-
reported resolution of $32.1 billion and contract authority of 
$39.3 billion, a 29-percent increase from the Committee-
reported resolution of $30.5 billion.
      For 2004-09, the Senate amendment includes $233.3 billion 
in obligation limitation, a 20-percent increase from the 
Committee-reported resolution of $194.4 billion and the 
amendment includes contract authority of $255.7 billion, a 24-
percent increase in the Committee-reported resolution of $206.5 
billion.
      For Essential Air Service, the Senate amendment assumes 
$103 million for 2004, which is $53 million above the 
President's request.
      For Port Security, the Senate amendment included $850 
million in 2004, and $850 million in 2005 due to an amendment 
adopted on the floor.
      For the Coast Guard, the Senate amendment assumes the 
President's request of $6.1 billion, the same as the 2003 
enacted level. This request would recapitalize much of the 
Coast Guard's budget which was diverted for more urgent needs, 
following September 11, 2001.
      The Senate amendment assumes full funding for the 
President's request for NASA programs within this function at 
$993 million, a 20-percent increase from the enacted 2003 
level.
      The Senate amendment includes $1.8 billion for Amtrak, a 
100-percent increase over the committee-passed resolution of 
$900 million due to an amendment adopted on the Senate floor 
that added $912 million.
Conference Agreement
      The Conference Agreement calls for $69.5 billion in BA 
and $69.9 billion in outlays in fiscal year 2004; $364.7 
billion in BA and $354.9 billion in outlays over 5 years; and 
$759.9 billion in BA and $745.8 billion in outlays over 10 
years.
      The Conference Agreement provides contract authority for 
Federal-aid highways of $35.482 billion in 2004, and $231.078 
billion for 2004-09, representing a compromise midway between 
the House- and Senate-passed level.
      The Conference Agreement also provides transit budget 
authority of $5.841 billion in 2004 and $49.1 billion for 2004-
09, which is also a compromise midway between the House- and 
Senate-passed.
      The Conference Agreement establishes a contingency 
procedure to increase spending above the level in the budget 
resolution on highways, highway safety, and transit should new 
offsetting resources be made available to the Highway Trust 
Fund. The conferees intend that the increase provided for in 
this Conference Agreement above the baseline will be 
constrained by the resources available to the Highway Trust 
Fund.

            Community and Regional Development: Function 450

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 [BIA]. Funding 
for disaster relief and insurance--including the Federal 
Emergency Management Agency [FEMA], now part of the new 
Department of Homeland Security [DHS]--also appear here.
House Resolution
      The House resolution calls for $14.1 billion in BA and 
$15.9 billion in outlays in fiscal year 2004, an increase of 
15.4 percent in BA compared with fiscal year 2003. The function 
totals are $73.5 billion in BA and $76.5 billion in outlays 
over 5 years, and $155.8 billion in BA and $154.1 billion in 
outlays over 10 years.
      Resources allow for significant expansions of the First 
Responder Grant Program, with $3.5 billion in funding for 
grants for ``first responders'' such as local firefighters, and 
search-and-rescue or police forces. This is a $1.7 billion 
increase over the 2003 enacted level.
Senate Amendment
      The Senate amendment assumes funding for this function 
will total $14.3 billion in BA and $16.7 billion in outlays. 
This represents a decrease of 9 percent in BA, or $1.4 billion, 
from 2003. The Senate amendment assumes funding of $151.9 
billion in BA and $153.5 billion in outlays over 2004-13.
      For discretionary programs, the Senate amendment assumes 
$13.8 billion in BA and $16.8 billion in outlays for 2004. This 
represents a decrease of $1.4 billion in BA from the 2003 
level. The Senate amendment includes the following specific 
assumptions.
      As part of the newly formed Department of Homeland 
Security, all the activities of what was once known as the 
Federal Emergency Management Agency will be managed by the 
Emergency Preparedness and Response Directorate within DHS. For 
the Office of Domestic Preparedness, the Committee-reported 
resolution assumed the President's request for $3.5 billion in 
2004 to ensure that first responders are properly trained and 
equipped. Then the Senate adopted an amendment to the 
resolution to add an additional $3.5 billion in 2003 for first 
responders. The Senate amendment also assumes $3.2 billion for 
Disaster Relief activities. This level is consistent with the 
average cost of (non-terrorist) disaster events over the past 5 
years. This includes $2.0 billion in new money, as well as 
money left over from prior years. This $2.0 billion in new 
money represents an increase of $1.2 billion over the 2003 
level.
      The Senate amendment also incorporates the President's 
proposal for a new $300 million pre-disaster mitigation 
program. The Senate amendment also continues to support the 
protection of the public against flood damage by supporting the 
Flood Map Modernization Fund and including $200 million to 
update the inaccurate maps.
      For Community Development Block Grants, the Senate 
amendment matches the President's request by assuming $4.7 
billion in 2004. This is $200 million below the enacted 2003 
level. The President proposes to review this program and 
develop proposals to better incorporate poorer communities with 
poverty rates above the national average.
      For the Bureau of Indian Affairs, the Senate amendment 
assumes $1.1 billion which is an increase of $21 million from 
2003. The resolution also supports Indian school construction 
and provides $346 million to improve academic performance at 
BIA schools and to eliminate the school maintenance and repair 
backlog.
      Among mandatory activities in this function, the Senate 
amendment reflects an amendment adopted by the Senate adding 
$260 million in BA in 2004 (and in each year thereafter through 
2013) for a new Homestead Venture Capital Fund.
Conference Agreement
      The Conference Agreement calls for spending of $14.1 
billion in BA and $15.8 billion in outlays in 2004, and $71.8 
billion in BA and $75.4 billion in outlays over the period 
2004-08. Over the period 2004-13, the agreement calls for 
spending of $149.3 billion in BA and $149.2 billion in outlays. 
The conference agreement accommodates the expansion of grants 
for first responders, and other activities in the new 
Department of Homeland Security.
      The conferees strongly support the continued funding of 
the Round II Urban and Rural Empowerment Zone and Enterprise 
Community [EZ/EC] initiatives at least at the level pledged by 
the Round II designation of 1999. The conferees recognize that 
the current EZ/EC initiative is yielding measurable results; 
improving the economy and quality of life in distressed areas; 
enabling self-sufficiency of disadvantaged residents; and 
leveraging private and nonprofit resources. In competing for 
the designations, these communities were selected for their 
thoughtful use of Federal funds over a full 10 year cycle, not 
on how quickly they could withdraw funds from the Treasury. The 
Round II EZ/EC designees have received only a small portion of 
the Federal grant funds they were promised to implement their 
strategic plans for revitalization. This Conference Agreement 
assumes the program will receive sufficient resources to 
continue progress on this important work.

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

Function Summary
      Education spending consumes two-thirds of the Function 
500 total, including elementary and secondary education 
services, higher education aid, and research and general 
education aids--the last category incorporating funding for 
arts, humanities, museums, libraries, and public broadcasting. 
Job training and other Labor Department activities are in this 
function, as are social services--including the Social Services 
Block Grant, vocational rehabilitation, and national service.
House Resolution
      The House resolution calls for $84.7 billion in BA and 
$85.7 billion in outlays in fiscal year 2004. The function 
totals are $435.2 billion in BA and $428.7 billion in outlays 
over 5 years, and $914.5 billion in BA and $898.5 billion in 
outlays over 10 years.
      The resolution levels support priority funding for a 
number of discretionary spending programs. It assumes an 
increase of $50 million, to $1.238 billion, for the Impact Aid 
program. It accommodates an increase of at least $666 million, 
to $12.35 billion, for Title I funding of low-income school 
districts. The resolution also provides for at least $12.7 
billion toward the Pell Grant program for low-income 
undergraduate students, a $1.34-billion increase from 2003. In 
the area of special education, the resolution assumes an 
increase of at least $660 million for Individuals with 
Disabilities Education Act [IDEA] Part B Grants to States.
      In mandatory spending, the resolution includes 
reconciliation instructions to the Committee on Education and 
the Workforce to create re-employment accounts as a temporary 
new benefit. As recommended in the President's economic growth 
proposal, $3.6 billion in mandatory BA is provided in 2003 for 
the establishment of these accounts.
Senate Amendment
      For discretionary programs, the Senate amendment assumes 
$86.3 billion in BA and $75.8 billion in outlays for 2004. This 
represents an increase of $13.4 billion (18.5 percent) in BA 
over the 2003 level. The Senate amendment includes the 
following specific assumptions.
      For Title I Grants to Local Education Agencies, the 
Committee-reported resolution assumed a $1 billion increase, 
bringing funding to $12.7 billion for academic year 2004-05. 
This represents an 8.6-percent increase over the previous 
academic year. An amendment adopted by the Senate added an 
additional $2 billion for No Child Left Behind programs. 
Another amendment adopted by the Senate added $2 billion for 
block grants to States for No Child Left Behind, special 
education, and vocational education programs.
      For the Individuals with Disabilities Education Act 
[IDEA], the Committee-reported resolution assumed a $1-billion 
increase for Part B Grants to States, and a $205-million cap 
adjustment in 2004. In addition to maintaining the previous 
year's funding level, a $1-billion increase was assumed in each 
year thereafter through 2009, bringing IDEA funding to $6.2 
billion above the baseline level in 2009. During its 
consideration of the resolution, the Senate adopted an 
amendment that increased IDEA levels by $970 million in 2004 
and $2.3 billion in 2005.
      The Committee-reported resolution assumed holding Impact 
Aid at the 2003 level. The Senate adopted an amendment to 
increase Impact Aid by $112 million, bringing its funding level 
to $1.3 billion in 2004.
      For Pell Grants, the Committee-reported resolution 
assumed a $1.4 billion increase. The Senate adopted an 
amendment to increase Pell funding by an additional $1.8 
billion, which would support a $4,500 maximum award. This 
brings total funding for Pell Grants to $14.5 billion in 2004.
      The Senate amendment fully funds the President's request 
of $6.8 billion for Head Start, which would remain in HHS.
      The Senate amendment reflects the President's proposals 
for reauthorization of the Workforce Investment Act [WIA] as 
well as an amendment adopted by the Senate to increase WIA 
funding by $678 million, bringing total funding to $5.6 
billion.
      The Senate amendment includes the administration's 
request for the Labor Department's Office of Labor-Management 
Standards, which reflects an additional $6 million to improve 
the transparency of union finances. The Senate amendment also 
reflects an additional $6-million increase to make whole the 
chronic under-funding of the Office in prior years.
      The Senate amendment also assumes enactment of the CARE 
Act, as reported by the Senate Finance Committee, and therefore 
reflects an additional $275 million for the Social Services 
Block Grant for 2003 and an additional $1.1 billion for 2004.
      The Senate amendment assumes adoption of the President's 
student loan forgiveness proposal at a cost of $45 million in 
2004.
      Among mandatory programs in this function, the Senate 
amendment reflects an amendment adopted by the Senate to create 
a New Homestead Venture Capital Fund, costing $1.2 billion over 
10 years.
Conference Agreement
      The resolution calls for $90.0 billion in BA and $84.2 
billion in outlays in fiscal year 2004. The function totals are 
$468.4 billion in BA and $449.9 billion in outlays over 5 
years, and $986.3 billion in BA and $955.6 billion in outlays 
over 10 years.
      These levels accommodate a $3-billion increase from the 
previous year for the Department of Education, which would 
provide for a $1.3-billion increase for the Pell Grant program; 
a $50-million increase for the Impact Aid Program; and a $1-
billion increase for Title I of the No Child Left Behind Act. 
Cumulatively, the Conference Agreement accommodates funding for 
No Child Left Behind programs of $1.5 billion above the 
President's proposed level. For the Part B Grants to States 
program of the Individuals with Disabilities Education Act, a 
$2.2-billion increase is provided for 2004, followed by an 
additional $2.5 billion increase in 2005. This increase of $4.7 
billion over 2 years would raise the program's level of funding 
from $8.9 billion to $13.6 billion.
      In mandatory spending, the resolution assumes the 
President's proposal to increase from $5,000 to $17,500 the 
maximum level of student loan forgiveness available to math, 
science, and special education teachers serving in low-income 
communities.

                          Health: Function 550

Function Summary
      Medicaid represents about 71 percent of the spending in 
this function. The function also includes the State Children's 
Health Insurance Program [SCHIP]; health research and training, 
including NIH and substance abuse prevention and treatment; and 
consumer and occupational health and safety, including the 
Occupational Safety and Health Administration.
      The Department of Health and Human Services [HHS] plays a 
lead role in addressing bio-terrorism. Four key HHS components 
participate in homeland bio-terrorism security: the Centers for 
Disease Control and Prevention [CDC], the Food and Drug 
Administration [FDA], the Health Resources and Services 
Administration [HRSA], and the National Institutes of Health 
[NIH]. In fiscal year 2004, total spending for HHS's 
bioterrorism efforts would be $3.6 billion.
House Resolution
      The House resolution calls for $235.1 billion in BA and 
$235.5 billion in outlays in fiscal year 2004, an increase of 
5.9 percent in BA compared with fiscal year 2003. The function 
totals are $1,337.2 billion in BA and $1,334.8 billion in 
outlays over 5 years, and $3,196.9 billion in BA and $3,188.0 
billion in outlays over 10 years.
      For the Department of Homeland Security [DHS], the 
resolution reserves $5.6 billion over 10 years for BioShield, a 
program to accelerate research, development, and purchase of 
bioterrorism threat countermeasures. Also within Function 550, 
the resolution assumes $400 million to maintain and strengthen 
the Strategic National Stockpile.
      The resolution provides for Medicaid reform to give 
States greater flexibility and to provide health insurance 
coverage for new populations. The budget establishes a reserve 
fund of $3.25 billion in fiscal year 2004 and $8.9 billion over 
5 years for Medicaid reform. The proposal is budget-neutral 
over 10 years.
      Other Medicaid policies include assumptions that expiring 
fiscal year 2000 State Children's Health Insurance Program 
funds will be extended for 1 year, that Transitional Medicaid 
Assistance and the QI-1 programs are extended for 5 years, and 
that the Vaccines for Children program will be modified to 
allow health departments to give vaccines.
      The resolution also assumes enactment of abstinence 
education legislation and assumes States will have the option 
to expand Medicaid coverage for children with special needs, 
allowing families of disabled children the opportunity to 
purchase coverage under the Medicaid program for such children.
      The budget assumes that by fiscal year 2004, NIH funding 
will have more than doubled over the 1998 level, to $27.9 
billion.
Senate Amendment
      For discretionary programs, the Senate amendment assumes 
$52.7 billion in BA and $50.8 billion in outlays for 2004. This 
represents an increase of $3.2 billion in BA over the 2003 
level.
      The omnibus appropriations bill of 2003 completed the 
planned 5-year doubling of the National Institutes of Health 
[NIH] budget from $13.7 billion in 1998 to $27.1 billion in 
2003. Nonetheless, the Senate amendment includes an additional 
10-percent increase for 2004, bringing total NIH funding to 
$29.7 billion in BA in 2004.
      For mandatory programs, the Senate amendment includes 
several reserve funds. The Senate amendment assumes a reserve 
fund for the Finance Committee to reform Medicaid and the State 
Children's Health Insurance Program by providing flexibility to 
the States for innovation and expansion of coverage. The fund 
is based on the administration's proposal for a new Medicaid 
and SCHIP program option, under which States may take their 
Medicaid and SCHIP funding in a single Federal payment.
      The Senate amendment includes another reserve fund for 
the Finance Committee to report legislation to extend the 
availability of SCHIP funds that will expire and restore 
availability of funds from 1998 and 1999 that have expired. 
According to CBO estimates, approximately $1.26 billion in 
SCHIP funds reverted to the Treasury on 1 October 2002, and 
$1.35 billion will return to the Treasury at the end of 2003. 
Beyond these amounts, the reserve fund would allow such 
legislation to provide an additional $1.825 billion in BA and 
$975 million in outlays over 10 years to the States to ease 
some of the financial strain they face as well as to cover more 
children under their SCHIP programs.
      The Senate amendment includes an $88 billion reserve fund 
for the Finance Committee to report legislation that would 
assist the 41 million uninsured Americans in gaining access to 
quality, affordable health insurance.
      The Senate amendment includes a reserve fund for the HELP 
Committee for the creation of Project Bioshield, a 
comprehensive effort to develop effective countermeasures 
against biological and other dangerous agents. Over the next 10 
years, almost $6 billion will be available to purchase new 
countermeasures for smallpox, anthrax, and botulism toxin as 
well as to produce and purchase countermeasures for other 
dangerous agents, such as Ebola and plague, once safe and 
effective treatments are developed.
      The Senate amendment includes savings of $3.346 billion 
over 10 years for medical liability reform.
Conference Agreement
      The Conference Agreement calls for $240.6 billion in BA 
and $238.8 billion in outlays in fiscal year 2004. The function 
totals are $1,401.2 billion in BA and $1,396.6 billion in 
outlays over 5 years, and $3,375.4 billion in BA and $3,363.5 
billion in outlays over 10 years.
      The Agreement reserves $5.6 billion in funding over 10 
years to allow the Department of Homeland Security to procure, 
for inclusion in the Strategic National Stockpile, 
countermeasures necessary to protect the public health from 
current and emerging threats of chemical, biological, 
radiological or nuclear agents. For Medicaid reform, the 
Agreement establishes a reserve fund of $3.3 billion in fiscal 
year 2004, and $8.9 billion over 5 years. The fund is budget 
neutral over 10 years. Other reserve funds in the Agreement 
include $161 million in new BA in 2004 and $50 billion over 10 
years to increase access to health insurance for the uninsured; 
and $43 million in new BA in 2004 and $7.5 billion over 10 
years for the Family Opportunity Act. Other assumptions include 
a 1-year extension of certain State Children's Health Insurance 
Program funds--specifically fiscal year 1998 and 1999 funds 
that have expired, and fiscal year 2000 funds that are 
expiring. In addition, the Conference Agreement assumes that 
Transitional Medicaid Assistance and the QI-1 programs are 
extended for 5 years. It also assumes funding for abstinence 
education.
      The Agreement assumes savings of $3.7 billion over 10 
years resulting from the impact of medical liability reform on 
Medicaid, FEHBP, and DOD. The figure reflects an updated cost 
estimate from the Congressional Budget Office for the 108th 
Congress.

                         Medicare: Function 570

Function Summary
      This budget function 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. It also includes the 
``Medicare+Choice'' Program, which covers Part A and Part B 
benefits and allows beneficiaries to choose certain private 
health insurance plans. Medicare+Choice plans may include 
health maintenance organizations, preferred provider 
organizations, provider-sponsored organizations, and private 
fee-for-service plans. In addition to covering all Medicare-
covered services, such plans may add benefits or reduce cost-
sharing required by the traditional Medicare program.
House Resolution
      The House resolution calls for $266.5 billion in BA and 
$266.9 billion in outlays in fiscal year 2004, an increase of 
7.2 percent in BA compared with fiscal year 2003. The function 
totals are $1.6 trillion in BA and $1.6 trillion in outlays 
over 5 years and $3.9 trillion in BA and $3.9 trillion in 
outlays over 10 years. Over the 2004-13 period, Medicare 
spending grows by 7.8 percent.
      The House budget resolution includes a reserve fund of 
$400 billion over 10 years for Medicare modernization and a 
prescription drug benefit. The $400 billion amount is equal to 
the amount the President proposed in his fiscal year 2004 
budget. This amount is in addition to the $54 billion increase 
in Medicare spending in the Fiscal Year 2003 Omnibus 
Appropriations Bill.
Senate Amendment
      The Senate amendment assumes the President's proposal to 
provide additional Medicare funds to improve access to 
prescription drugs for all beneficiaries and to strengthen and 
modernize the program. This funding is included in a reserve 
fund, which contains up to $400 billion for the 2004-13 period.
      The Senate amendment also assumes savings of $7.9 billion 
dollars over 10 years in Medicare from the passage of medical 
liability reform. The Congressional Budget Office has 
determined that limits on medical malpractice litigation would 
lower the cost of malpractice insurance for physicians, 
hospitals, and other health care providers and organizations. 
That reduction in insurance costs would, in turn, lead to lower 
charges for health care services and procedures, and 
ultimately, to a decrease in rates for health insurance 
premiums.
Conference Agreement
      The Conference Agreement calls for $266.0 billion in BA 
and $266.3 billion in outlays in fiscal year 2004, $1,583.3 
billion in BA and $1,583.4 billion in outlays over 5 years, and 
$3,867.7 billion in BA and $3,867.6 billion in outlays over 10 
years.
      The Conference Agreement includes separate Medicare 
reserve funds for the House and Senate, each of which provides 
$7 billion in fiscal year 2004 and $400 billion over 10 years. 
The $400-billion level is equal to the amount the President 
proposed in his fiscal year 2004 budget.
      The Conference Agreement also assumes savings of $11.2 
billion over 10 years in Medicare from the passage of medical 
liability reform legislation. This amount reflects the updated 
cost estimate from the Congressional Budget Office for the 
108th Congress.

                     Income Security: Function 600

Function Summary
      The Income Security function 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 [PBGC]--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 to 
Needy Families [TANF], the Government's principal welfare 
program; 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).
      Over the period 1998-03, BA in the function has had an 
average annual increase of 6.4 percent.
House Resolution
      The House resolution calls for $315.9 billion in BA and 
$321.6 billion in outlays in fiscal year 2004. The function 
totals are $1,658.0 billion in BA and $1,672.7 billion in 
outlays over 5 years, and $3,524.3 in BA and $3,543.0 in 
outlays over 10 years. The reauthorization of the contingency 
fund in the TANF program causes a one-time spike in BA and 
outlays during fiscal year 2003 relative to the remaining 
period of the reauthorization.
      The resolution assumes that the TANF block grant, as well 
as the related child care entitlement to States and other 
elements of the 1996 welfare reform law will be reauthorized 
during fiscal year 2003 as passed by the House on 13 February 
2003 in the Personal Responsibility, Work, and Family Promotion 
Act of 2003, which accommodates an additional $2.4 billion in 
mandatory spending above the baseline for these programs over 5 
years (2003-08). The resolution allows for an additional $1 
billion over 5 years above current law for the mandatory child 
care entitlement to States.
      The resolution also accommodates the President's proposal 
to offer States an optional block grant for foster care 
payments. The resolution assumes $6.9 billion in 2004 for 
Foster Care and Adoption Assistance, including the Independent 
Living program, which provides assistance to youths who are 
aging out of foster care.
      The resolution assumes a decline in Unemployment 
Insurance benefit payments in fiscal year 2004, relative to 
2003, because extended Federal Unemployment Insurance benefits 
enacted on 8 January 2003 will terminate on 31 May 2003, and 
because economic assumptions assume a drop in the unemployment 
rate in 2004.
      The resolution seeks to reduce erroneous overpayments in 
SSI by accommodating $1.4 billion to conduct Continuing 
Disability Reviews [CDRs] of SSI Disability recipients to 
ensure that they are sufficiently disabled to remain eligible 
for benefits.
      The resolution assumes the outlay portions of refundable 
tax credits contained in the President's economic growth 
package of tax incentives, together with the outlay effects of 
making refundable tax credit policies of the 2001 tax cuts 
permanent. Outlays are assumed for the Earned Income Tax Credit 
and the Child Tax Credit under these provisions.
      The resolution also assumes enactment of legislation such 
as H.R. 4069 (from the 107th Congress), providing for 
enhancement of Social Security benefits for women.
Senate Amendment
      For discretionary programs, the Senate amendment assumes 
$45.7 billion in BA and $51.5 billion in outlays for 2004. This 
represents an increase of $1.7 billion in BA and $763 million 
in outlays from the 2003 level. The Senate amendment includes 
the following specific assumptions.
      The Senate amendment includes an additional $9 million 
for the Employee Benefit Security Administration for pension 
protection and employer education.
      The Senate amendment incorporates the administration's 
plan to reform the Federal Employee Compensation Act. These 
changes will save taxpayers approximately $80 million over 10 
years.
      The Senate amendment incorporates a debt restructuring 
and interest refinancing plan for the Black Lung Trust Fund.
      The Senate amendment includes the President's proposal 
for food and nutrition funding totaling $41.7 billion for 2004. 
The Senate amendment increases funding for the Women's Infant 
and Children program by $73 million, or 1.6 percent more than 
2003.
      The Senate amendment assumes reauthorization the Personal 
Responsibility and Work Act and therefore assumes an increase 
above the President's request for the Child Care Development 
Block Grant. The Senate amendment assumes an increase for 2004 
of $214 million over the 2003 level, a 10.2-percent increase.
      The Senate amendment includes the President's proposal to 
eliminate a discretionary limit on administrative expenditures 
for the Pension Benefit Guarantee Corporation.
      Under the Senate amendment, sufficient budget authority 
is provided to renew all utilized section 8 housing contracts 
as contemplated in the 2003 Omnibus Appropriations Bill.
      Among mandatory programs in this function, the Senate 
amendment assumes the President's request to reauthorize the 
landmark 1996 welfare reform legislation, which replaced the 60 
year-old Aid to Families with Dependent Children program with 
the Temporary Assistance to Needy Families block grant. The 
Senate amendment also assumes the President's priority to 
promote healthy marriages, fatherhood and family formation. The 
Senate amendment is supportive of efforts to capitalize and 
develop the role of sustainable social services, such as 
Goodwill, which are critical to the success of moving welfare 
recipients to work.
      The Senate amendment assumes an increase of $200 million 
annually above the baseline in the Child Care Entitlement to 
States.
      The Senate amendment also assumes aspects of the 
President's proposal to enhance Child Support Enforcement 
collections. Child Support Enforcement efforts will increase 
collections and direct more of the support collected to 
children and families.
      The Senate amendment assumes the President's Foster Care 
and Adoption Assistance proposal, providing States with 
increased flexibility to better design their child welfare 
system that supports services to families in crisis and 
children at risk.
Conference Agreement
      The conference agreement calls for spending of $319.5 
billion in BA and $324.8 billion in outlays in 2004, and 
$1,706.1 billion in BA and $1,720.0 billion in outlays over the 
period 2004-08. Over the period 2004-13, the agreement calls 
for spending of $3,686.9 billion in BA and $3,703.5 billion in 
outlays.
      The conference agreement assumes reauthorization of TANF 
at the level requested by the President, which is largely 
consistent with H.R. 4 as passed by the House on 13 February, 
2003. It also provides $2.0 billion above the baseline level 
for the mandatory Child Care Entitlement to States, as assumed 
in the Senate budget resolution. The Agreement assumes funding 
for the incentive to States to reform child welfare programs as 
proposed by the President. It also assumes savings from pre-
effectuation reviews of applications for Supplemental Security 
Income benefits.

                     Social Security: Function 650

Function Summary
      Function 650 consists of the Social Security Program, or 
Old Age, Survivors, and Disability Insurance [OASDI]. Under 
provisions of the Congressional Budget Act and the Budget 
Enforcement Act, Social Security trust funds are ``off 
budget.'' Nevertheless, a small portion of spending in Function 
650--specifically a portion of the budget for the Office of the 
Inspector General of the Social Security Administration [SSA], 
the quinquennial adjustment for World War II veterans, and 
general fund transfers of taxes paid on Social Security 
benefits--are on budget.
House Resolution
      Total on-budget spending in the House resolution is $14.2 
billion in BA and outlays.
Senate Amendment
      The Senate amendment assumes the on-budget totals for 
Social Security will be $14.3 billion in BA and outlays for 
2004 and $223.8 billion in BA and outlays over 2004-13. The 
Senate amendment assumes discretionary spending in this 
function, for the administrative expenses of the Social 
Security Administration, would total $4.3 billion in BA and 
$4.2 billion in outlays for 2004. This represents an increase 
of $0.4 billion, or 11.7 percent, in BA above the 2003 level. 
The Senate amendment assumes no mandatory increases or 
decreases in this function.
Conference Agreement
      The Conference Agreement calls for on-budget amounts as 
follows: $14.3 billion in BA and outlays in 2004; $83.8 billion 
in BA and outlays for 2004-08; and $223.8 billion in BA and 
outlays over the 2004-13 period. The House accepts the Senate's 
method of recording certain pension offsets.

              Veterans Benefits and Services: Function 700

Function Summary
      The Veterans Benefits and Services function 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, but over the next 20 years this number will 
decline by one-third, to about 17 million.
House Resolution
      The House resolution calls for $61.6 billion in BA and 
$61.1 billion in outlays in fiscal year 2004, an increase of 
5.4 percent in BA compared with fiscal year 2003. The function 
totals are $319.5 billion in BA and $318.2 billion in outlays 
over 5 years; and $671.7 billion in BA and $668.9 billion in 
outlays over 10 years.
      The resolution supports a $1.3-billion increase in 
veterans medical care. It assumes the expansions and revisions 
of mandatory benefits proposed by the administration's fiscal 
year 2004 budget, as well as: continuation of Dependency and 
Indemnity Compensation for surviving spouses who remarry after 
age 55; an increase in auto allowance from $9,000 to $11,000 
for severely disabled veterans; and accrued benefits for 
veterans survivors.
Senate Amendment
      The Senate amendment assumes levels for this function of 
$63.8 billion in BA and $63.2 billion in outlays. This 
represents an increase of 10.7 percent, or $6.2 billion, in BA. 
The Senate amendment assumes funding of $693.7 billion in BA 
and $689.2 billion in outlays over 2004-13.
      For discretionary spending, the Senate amendment assumes 
$30.0 billion in BA and $29.6 billion in outlays for 2004. This 
represents an increase of 12.9 percent, or $3.4 billion, in BA 
over the 2003 level. The Senate amendment proposes to refocus 
resources to benefit higher priority veterans.
      The Senate amendment proposes total net funding of $29.0 
billion for the Department of Veterans Affairs [VA] medical 
programs. This is an increase of 14.6 percent, or $3.7 billion, 
above the 2003 enacted level, and the largest increase for 
medical care in the past 5 years. This increase will help the 
VA in its mission to provide medical care to its core 
constituency low-income and service-connected disabled 
veterans.
      The Senate amendment assumes the enactment of legislation 
to establish the President's proposed $250 enrollment fee for 
priority level 7 and 8 veterans. Priority 7 and 8 veterans have 
ailments that are not service connected and have a higher 
income than other veterans using the VA hospitals. The 
enrollment fee would generate offsetting receipts of $102 
million in 2004 for the Medical Care Collections Fund [MCCF].
      The Senate amendment also assumes legislation will be 
enacted to increase the insurance and prescription drug co-
payments for Priority 7 and 8 veterans to $20 and $15, 
respectively, as proposed by the President. In addition, the 
Senate amendment reflects the President's proposal to eliminate 
both the insurance and prescription drug co-payment for 
priority level 2 through 5 veterans. These changes in the 
prescription drug and insurance co-payments would yield 
offsetting receipts of $224 million in 2004 into MCCF.
      For mandatory veterans programs, the Senate amendment 
assumes the President's proposal to enact legislation to 
restore the original interpretation of section 1110 of title 38 
U.S. Code will be enacted. Section 1110 prohibits compensation 
for alcohol or drug abuse that 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. This proposal would save $71 
million over 10 years.
Conference Agreement
      The Conference Agreement calls for $63.8 billion in BA 
and $63.2 billion in outlays in fiscal year 2004. The function 
totals are $327.9 billion in BA and $325.6 billion in outlays 
over 5 years; and $693.9 billion in BA and $689.4 billion in 
outlays over 10 years. The Agreement assumes no revisions in 
mandatory programs.
      The Conference Agreement provides for discretionary BA of 
$29.96 billion for fiscal year 2004, an increase of $3.4 
billion, or 12.9 percent--nearly all of which is expected to be 
for Department of Veterans Affairs [VA] medical programs. An 
increase of this magnitude will help the VA in its mission to 
provide medical care to its core constituency--low-income and 
service-connected disabled veterans, as well as the cost of 
medical care for combat veterans returning from Iraq in 
accordance with Public Law 105-368.

                Administration of Justice: Function 750

Function Summary
      Function 750 supports the majority of Federal justice and 
law enforcement programs and activities. This includes funding 
for the Department of Justice, much of the newly formed 
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.
House Resolution
      The House resolution calls for $37.3 billion in BA and 
$40.9 billion in outlays for this function for fiscal year 
2004. The function totals over 10 years are $404.2 billion in 
BA and outlays.
      The House resolution fully funds the Department of 
Homeland Security [DHS] components reflected in this function, 
including: securing the Nation's borders; enhancing Federal, 
State, and local law enforcement efforts; stopping terrorist 
financing; and bringing terrorist conspirators to justice.
      The resolution also provides for $18.7 billion in 
discretionary funding for the Department of Justice, and thus 
allows for the hiring of 2,170 new employees, including 1,911 
new FBI personnel.
      Also in this function, the resolution assumes $9 million 
for the mandatory costs associated with creating 62 new Federal 
judgeships and extending five existing bankruptcy judgeships.
Senate Amendment
      The Senate amendment assumes funding for this function 
will total $37.8 billion in BA and $40.9 billion in outlays. 
This represents a decrease of 2.0 percent, or $0.8 billion, in 
BA from 2003. The Senate amendment assumes funding of $406.4 
billion in BA and $408.7 billion in outlays over 2004-13.
      For discretionary programs, the Senate amendment assumes 
$33.7 billion in BA and $37.6 billion in outlays for 2004. This 
represents a decrease of $2.6 billion in BA from the 2003 
level. The Senate amendment includes the following specific 
assumptions.
      For the Department of Homeland Security, the Senate 
amendment assumes $5.6 billion in discretionary funds in 2004 
for the Bureau of Customs and Border Protection, an increase of 
$800 million (16.7 percent) more than in 2003. For the DHS 
Bureau of Immigration and Customs Enforcement, the Senate 
amendment assumes $1.4 billion for 2004, an increase of $0.3 
billion or 26 percent more than in 2003. The Senate also 
adopted an amendment to add $150 million in BA in 2004 and 2005 
for additional port security needs.
      For the Federal Bureau of Investigation [FBI], the Senate 
amendment assumes a total of $4.1 billion, an increase of $397 
million (10.6 percent) from 2003. This increase would be 
primarily used for intelligence analysts, surveillance 
personnel, and field investigators, including cybercrime 
investigators, as well as to support FBI-led interagency task 
forces.
      The Senate amendment also assumes $500 million for the 
Office of Domestic Preparedness to be used exclusively for 
grants to local law enforcement agencies to combat terrorism.
      The Senate amendment assumes two mandatory proposals in 
the President's budget concerning the extension of expiring 
Customs user fees. If extended, the combined resulting 
collections would be $1.3 billion in 2004 and $17.8 billion 
through 2013.
Conference Agreement
      The function totals for the Conference Agreement are 
$37.6 billion in BA and $40.8 billion in outlays for fiscal 
year 2004; $191.5 billion in BA and $195.7 billion in outlays 
over 5 years; and $406.3 billion in BA and $408.6 billion in 
outlays over 10 years.
      The Agreement fully funds the President's request for the 
Department of Justice and the programs and activities of the 
Department of Homeland Security in Function 750. The Agreement 
also assumes additional funding for Bankruptcy and other 
Federal judges.

                    General Government: Function 800

Function Summary
      The General Government function 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 [IRS]); the property and personnel costs of the General 
Services Administration and the Office of Personnel Management; 
general purpose fiscal assistance to States, localities, the 
District of Columbia, and U.S. territories; and other general 
government activities. The IRS accounts for about half of the 
spending in this function.
House Resolution
      The House resolution calls for $19.8 billion in BA and 
$19.6 billion in outlays in fiscal year 2004, an increase of 
8.8 percent in BA compared with fiscal year 2003. The function 
totals are $99.3 billion in BA and $98.9 billion in outlays 
over 5 years, and $206.4 billion in BA and $203.9 billion in 
outlays over 10 years.
      The House Passed resolution accommodates $500 million for 
the newly created Election Assistance Commission. It also 
assumes the President's mandatory spending proposal to pay 
financial institutions for their services in lieu of providing 
compensating balances; and continuation of fiscal assistance 
provided to the Compact of Free Association between the United 
States Government and the government of the Federated States of 
Micronesia.
Senate Amendment
      For discretionary programs, the Senate amendment assumes 
$17.1 billion in BA and $16.8 billion in outlays for 2004. This 
represents an increase of $1.4 billion in BA from the 2003 
level. The Senate amendment includes the following specific 
assumptions.
      The Senate amendment allocates $10.4 billion for the 
Internal Revenue Service [IRS], an increase of $550 million or 
almost 6 percent over 2003. Of that increase, 50 percent is 
directed into Tax Law Enforcement [TLE], 23 percent toward 
Processing Assistance and Management [PAM], and 19 percent for 
reducing fraud in the Earned Income Tax Credit [EITC] program.
      The Senate amendment allocates $223 million for Payments 
in Lieu of Taxes [PILT] for 2004, $23 million more than the 
President's request. Over the next decade, this translates into 
an additional $300 million above the President's request. These 
payments compensate municipal governments for forgone revenues 
stemming from the presence of the Federal Government.
      The Senate amendment increases Homeland Security funding 
within Function 800 by $214 million in 2004. The additional 
funds are dedicated to developing the site plan for the new 
headquarters, converting wireless radio communication to 
narrowband operations and bolstering security at Federal 
buildings.
      For mandatory programs, the Senate amendment reflects the 
President's proposal to open ANWR for oil and gas leasing (the 
total Federal receipts portion appears in Function 950, 
Offsetting Receipts). The State of Alaska would receive a 
payment of one-half of the proceeds, or $1.7 billion in 2006, 
which is reflected in Function 800.
      The Senate amendment assumes that President's $386 
million Financial Agent Services proposal is enacted. 
Currently, financial institutions that operate major collection 
and payment programs on behalf of the Federal Government are 
reimbursed via compensating balances. The President's proposal 
would instead replace the existing barter arrangement with a 
more transparent fee-for-service agreement.
      In its examination of selected Government programs, OMB 
determined through the Performance Assessment Rating Tool 
[PART] that IRS collection efforts do not efficiently utilize 
its available resources. In response, the President proposes 
legislation that would permit the IRS to enlist the help of 
private collection agencies to obtain payment from delinquent 
taxpayers. The Senate amendment includes $226 million in 
mandatory funding in 2004 for this proposal.
Conference Agreement
      The Conference Agreement for Function 800 calls for $20.2 
billion in BA and $20.1 billion in outlays in fiscal year 2004. 
The functional totals are $103.9 billion in BA and $103.2 
billion in outlays over 5 years, and $221.3 billion in BA and 
$218.2 billion in outlays over 10 years.
      The Conference Agreement reflects the Senate amendment on 
funding for PILT.
      In fiscal year 2004, the Conference Agreement assumes the 
President's $386 million Financial Agent Services proposal is 
enacted. It also assumes that Compacts of Free Association are 
ratified and therefore accommodates $19 million for this 
purpose in 2004.

                       Net Interest: Function 900

Function Summary
      Net interest 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. Function 900 is a mandatory payment, with no 
discretionary components.
      On-budget BA and outlays for net interest has gone from 
$287.8 billion in fiscal year 1998 to $239.7 billion in fiscal 
year 2003, an overall decrease of 3.6 percent per year.
House Resolution
      For on-budget interest, the resolution calls for $256.7 
billion in BA and outlays in fiscal year 2004, an increase of 
7.2 percent compared with fiscal year 2003. The function totals 
are $1,659.4 billion in BA and outlays over 5 years, and 
$3,910.9 billion in BA and outlays over 10 years. For off-
budget interest, it calls for -$89.8 billion in BA and outlays 
in fiscal year 2004, a decrease of 6.7 percent compared with 
fiscal year 2003. The function totals are -$554.2 billion in BA 
and outlays over 5 years, and -$1,481.3 billion in BA and 
outlays over 10 years.
      The resolution assumes a reduction in interest payments 
of $0.3 billion in BA and outlays in fiscal year 2004 and $5.3 
billion in BA and outlays over 10 years. This saving arises 
from replacing Treasury's compensating balances by a permanent 
indefinite appropriation (see Function 800) that would result 
in lower borrowing by the Federal Government.
Senate Amendment
      For 2004, the Senate amendment sets forth on-budget 
levels of $255.8 billion in BA and outlays. Over the 2004-2013 
period, it provides on-budget amounts of $3,889.2 billion in BA 
and outlays.
      The Senate amendment assumes two additional policies that 
affect net interest. The first is the President's proposal to 
pay financial institutions for their services in lieu of 
providing compensating balances (discussed in Function 800), 
which results in lower borrowing by the Federal Government and 
saves $5.3 billion in interest over 10 years. The second is the 
Postal Service pension proposal (discussed in Functions 370 and 
950), which results in a reduction in interest received by the 
Federal Government.
Conference Agreement
      The Conference Agreement calls for on-budget amounts of 
259.4 billion in BA and outlays in fiscal year 2004, and 
$4,072.6 billion over the 2004-13 period.

                        Allowances: Function 920

Function Summary
      The Allowances function is used for planning purposes to 
reflect the aggregate budgetary effects of proposals or 
assumptions that relate to programs in other budget functions. 
Once such changes are enacted, the budgetary effects are 
distributed to the appropriate budget functions.
      There is no spending history in Function 920 for the 
reason mentioned above.
House Resolution
      The House resolution calls for -$1.1 billion in BA and 
-$0.6 billion in outlays in fiscal year 2004, all of it in 
discretionary spending. The function totals are -$1.1 billion 
in BA and outlays for both the 5-year and the 10-year periods. 
There are offsets in Functions 500 and 700: $0.2 billion in BA 
and outlays in Function 500, for Impact Aid; and -$1.1 billion 
in BA and outlays in Function 700 to match the function total 
with the President's.
Senate Amendment
      The Senate Amendment assumes levels for this function 
would total -$16.1 billion in BA and -$8.3 billion in outlays 
for 2004. Initially, the Committee-reported resolution only 
assumed discretionary effects in this function (totaling -$3.9 
billion in BA and -$3.6 billion in outlays for 2004). These 
assumptions reflected removal of the effects of pay 
annualization in the baseline (which would reduce discretionary 
BA by about $2 billion annually); an alternate growth scenario 
for the path of nondefense discretionary spending after 2008 
(the last year of the President's 2004 budget); and an 
unspecified offset for an increase in veterans medical care.
      During consideration of the Committee-reported 
resolution, the Senate adopted 10 amendments that provided 
unspecified discretionary offsets in Function 920 for specific 
assumptions affecting other portions of the budget, and one 
amendment for an unspecified mandatory offset in Function 920 
for spending increases in Functions 450 and 500.
Conference Agreement
      The Agreement calls for -$7.6 billion in BA and $22.3 
billion in outlays in fiscal year 2004.

            Undistributed Offsetting Receipts: Function 950

Function Summary
      Offsetting Receipts recorded in this function are either 
intragovernmental (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 
employers make to employee retirement trust funds; payments 
made by companies for the right to explore and produce oil and 
gas on the Outer Continental Shelf; and payments by those who 
bid for the right to buy or use public property or resources, 
such as the electromagnetic spectrum. These receipts are 
treated as mandatory negative spending.
House Resolution
      The House resolution calls for -$52.9 billion in BA and 
outlays for this function in fiscal year 2004, reflecting a 
-$2.4 billion, or -4.8 percent, increase in receipts (or 
decrease in spending) compared to the fiscal year 2003 budget. 
This amount is the baseline for offsetting receipts increased 
by the reduction ($2.7 billion) in the Postal Service's 
contribution to the Civil Service Retirement System. Over the 
2004-08 period, BA and outlays are to further decrease by $16.1 
billion due to an average increase for receipts of 5.7 percent 
per year. Over 10 years, receipts are to total -$676.0 billion 
in BA and outlays.
      On-Budget Receipts. The resolution calls for -$42.9 
billion in BA and outlays in fiscal year 2004, a decrease of 
4.4 percent in BA compared with fiscal year 2003. The function 
totals are -$255.0 billion in BA and outlays over 5 years, and 
-$539.4 billion in BA and outlays over 10 years. Over the 2004-
08 period, on-budget BA and outlays further decrease an average 
of 5.4 percent per year.
      Off-Budget Receipts. The resolution assumes -$10.0 
billion in BA and outlays in fiscal year 2004, a decrease of 
6.6 percent in BA compared with fiscal year 2003. The off-
budget function totals -$57.6 billion in BA and outlays over 5 
years, and -$136.5 billion in BA and outlays over 10 years. 
Over the 2004-08 period, BA and outlays further decrease an 
average of 6.8 percent per year. The off-budget receipts in 
this function are agencies' payments to the Social Security 
trust funds at baseline.
Senate Amendment
      The Senate amendment assumes additional offsetting 
receipts of $2.15 billion over the 2004-13 period, consistent 
with opening up the 1002 area of the Arctic National Wildlife 
Refuge for oil exploration and production in order to decrease 
our dependence on foreign oil (the payment of a share of these 
receipts to the State of Alaska is reflected in Function 800). 
An amendment to the Committee-reported resolution adopted by 
the Senate struck the reconciliation instruction to the Senate 
Energy Committee to report legislation producing that level of 
savings.
      The Senate amendment also assumes legislation (S. 380, as 
cleared for the President on 8 April 2003) that would reduce 
the Postal Service payment to the Civil Service Retirement 
[CSRS] trust fund for 2003-05, but then would reinstate and 
redirect the payment to an escrow fund until Congress can enact 
subsequent law regarding how the Postal Service should address 
its retiree health liabilities and other concerns. This 
proposal would increase the unified deficit by $7.3 billion 
over the 2003-13 period. The budgetary effect on the Postal 
Service is reflected in Function 370, and the effect on the 
receipts of the CSRS fund are shown in this function (a small 
interest effect appears in Function 900).
      The Senate amendment assumes the President's proposals to 
extend the authority of the Federal Communications Commission 
to auction spectrum (which would otherwise expire at the end of 
2007) and to impose an efficiency fee on users of spectrum not 
acquired through Federal auction.
Conference Agreement
      On-Budget Receipts. For these receipts, the Agreement 
assumes -$42.9 billion in BA and outlays in fiscal year 2004; 
-$250.2 billion over 5 years; and -$540.2 billion over 10 
years.
      Off-Budget Receipts. The Agreement assumes -$10.0 billion 
in BA and outlays in fiscal year 2004; -$57.6 billion over 5 
years; and -$136.5 billion over 10 years.
      The Agreement assumes extended authority to auction the 
electromagnetic spectrum. It makes no assumption concerning the 
Arctic National Wildlife Refuge.

                      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 directives to only one committee of the House or 
Senate, then that committee is required to directly report to 
its House legislative language of its design that would 
implement the level of spending or revenue changes provided for 
in the resolution. Any bill considered pursuant to a 
reconciliation instruction is subject to special procedures set 
forth in sections 310 and 313 of the Budget Act.
House Resolution
            Section 201. Reconciliation
      Section 201 provides for two different reconciliation 
bills. The first reconciliation bill is designed to stimulate 
economic growth and to simplify and reform the tax system. It 
has two separate directives: The Committee on Ways and Means 
must reduce the total level of revenues by not more than $35.4 
billion for fiscal year 2003, $112.8 billion for fiscal year 
2004, $387.7 billion for the period of fiscal years 2004 
through 2008, and $662.8 billion for the period of fiscal years 
2004 through 2013. It must also increase the level of direct 
spending by $4.4 billion in outlays for fiscal year 2003, $1.1 
billion in outlays for fiscal year 2004, $17.4 billion in 
outlays for the period of fiscal years 2004 through 2008, and 
$23.1 billion in outlays for the period of fiscal years 2004 
through 2013. It also requires the Education and the Workforce 
to increase direct spending by $3.6 billion for FY2003. These 
changes must be transmitted to the Budget Committee by 11 April 
2003.
      The House resolution also instructs 13 committees to 
reduce spending on programs within their jurisdiction to the 
Budget Committee by 18 July 2003. The intent of the instruction 
is to reduce instances of waste fraud and abuse in these 
program areas. The committees may choose their own methods of 
complying with the directives. The committees are as follows: 
Agriculture, Education and the Workforce, Energy and Commerce, 
Financial Services, Government Reform, House Administration, 
International Relations, the Judiciary, Resources, Science, 
Transportation and Infrastructure, Veterans Affairs, and the 
Ways and Means. Each committee is required to reduce its 
spending by one percent.
Senate Amendment
            Section 104. Reconciliation in the Senate
      The Senate amendment instructs the Finance Committee to 
report legislation by 8 April 2003 to reduce revenues by $322.5 
billion over 2003-2013 and to increase direct spending related 
to tax policy changes by $27.5 billion over 2003-2013 
(reflected in function 600). The Committee-reported resolution 
had reconciled the Finance Committee for a reduction in 
revenues and an increase in outlays consistent with President 
Bush's jobs and growth tax relief plan--$725.8 billion over the 
2003-2013 period. During consideration of the Committee-
reported resolution, the Senate adopted several amendments that 
reduced the revenue reconciliation instruction to the Finance 
Committee.
Conference Agreement
            Section 201. Reconciliation for economic growth and tax 
                    simplification and fairness
      Section 201(a) of the Conference Agreement includes a 
reconciliation directive to the House Ways and Means Committee 
to report legislation by 8 May 2003 to stimulate economic 
growth and to simplify and reform the tax system. The committee 
must reduce the total level of revenues by not more than $535.0 
billion for the period of fiscal years 2003 through 2013, and 
to increase direct spending related to tax policy changes by 
$15.0 billion over 2003-2013.
      Section 201(b) of the Conference Agreement instructs the 
Senate Finance Committee to report legislation by 8 May 2003 to 
reduce revenues by $522.524 billion over 2003-2013 and to 
increase direct spending related to tax policy changes by 
$27.476 billion over 2003-2013 (reflected in function 600).
            Section 202. Limit on Senate consideration of 
                    reconciliation
      Section 202 of the Conference Agreement limits initial 
Senate consideration of a reconciliation bill reported pursuant 
to Section 201, or any amendment thereto, to no more than 
$322.524 billion in revenue reductions and $27.476 billion in 
outlay increases for the period of fiscal years 2003 through 
2013, enforced by a 60-vote point of order. The limitation 
would not apply to a conference report on legislation 
considered pursuant to this Title.

            SUBMISSIONS TO ELIMINATE WASTE, FRAUD, AND ABUSE

            Section 301. Submissions to eliminate waste, fraud, and 
                    abuse
      Section 301 of the Conference Agreement requires 
authorizing committees in the House and the Senate to submit 
findings to the appropriate Budget Committee identifying 
instances of waste fraud and abuse in programs within their 
jurisdiction sufficient to reduce outlays by an amount to be 
specified by the chairmen of the Budget Committees. Such a 
specified amount must be inserted in the Congressional Record 
by 19 May 2003. The findings of the authorizing committees must 
be submitted to the Budget Committees by 2 September 2003. 
These findings will be used by the Budget Committees in the 
development of future budget resolutions.
      In the House, the authorizing committees directed to 
report these findings are: Agriculture, Armed Services, 
Education and the Workforce, Energy and Commerce, Financial 
Services, Government Reform, House Administration, 
International Relations, Judiciary, Resources, Science, Small 
Business, Transportation and Infrastructure, Veterans' Affairs, 
and Ways and Means.
      In the Senate, the authorizing committees directed to 
report these findings are: Agriculture, Nutrition and Forestry; 
Armed Services; Banking, Housing, and Urban Affairs; Commerce, 
Science, and Transportation; Energy and Natural Resources; 
Environment and Public Works; Finance; Foreign Relations; 
Governmental Affairs; Health, Education, Labor, and Pensions; 
Judiciary; Small Business; Veterans' Affairs; and Indian 
Affairs.
      Finally, the Comptroller-General of the General 
Accounting Office is directed to submit to the Budget 
Committees a report identifying instances in which the 
committees of jurisdiction can make legislative changes to 
improve the economy, efficiency, and effectiveness of Federal 
programs. The report must be submitted by 2 September 2003.

         RESERVE FUNDS, CONTINGENCY PROCEDURES, AND ADJUSTMENTS

House Resolution
            Section 301. Medicare modernization and prescription drugs
      Section 301 creates a reserve fund for legislation that 
provides a prescription drug benefit and modernizes Medicare, 
and provides adjustments to the Medicare program on a fee-for-
service, capitated, or other basis. It creates a separate 
allocation for Medicare and then permits the Chairman of the 
House Budget Committee to make adjustments to that allocation 
for such legislation. The committees with jurisdiction over 
Medicare may report legislation for these purposes, though the 
adjustment made must be no more than $7.5 billion in fiscal 
year 2004 and $400 billion for fiscal years 2004 through 2013. 
Pursuant to section 321(d), legislation must be within the 
allocations provided by the budget resolution in the first year 
and five-year period. Because of the separate Medicare 
allocation established in section 301(c), Medicare legislation 
must be within its allocation in the first year and the ten-
year period. For legislation other than Medicare, the 
applicable allocation is for the first and five-year period.
            Section 302. Reserve fund for Medicaid
      Section 302 creates a reserve fund that allows the 
Chairman of the House Budget Committee to adjust the allocation 
of BA and outlays to the Committee on Energy and Commerce for 
any measure that combines funding for Medicaid and the State 
Children's Health Insurance Program [SCHIP]. The purpose of 
this reserve fund is to ensure, as a condition for setting any 
increase in the allocation, the bill is deficit neutral over 
ten years. The adjustments in the allocations may not exceed 
$3.3 billion in new BA and outlays for fiscal year 2004; and 
$8.9 billion in new BA and outlays for the period of fiscal 
years 2004 through 2008.
            Section 303. Reserve fund for Bioshield
      In section 303, the Chairman of the House Budget 
Committee is permitted to adjust the allocation of BA and 
outlays to the appropriate committees for a bill that 
establishes a program to accelerate the research, development, 
and purchase of biomedical threat countermeasures.
      The adjustment can accommodate either a discretionary or 
mandatory program, depending on the structure of the program in 
the authorizing legislation. If it is mandatory, the adjustment 
may not exceed $890 million in new mandatory BA for fiscal year 
2004, and $3.4 billion in new mandatory BA for fiscal years 
2004 through 2008. If it is discretionary, the adjustment would 
be made in the Appropriations Committee's 302(a) allocation for 
fiscal year 2004 because that allocation is made for only a 
single fiscal year. If the program includes both mandatory and 
discretionary components or if two bills are enacted, the 
maximum adjustment the committee may make in fiscal year 2004 
is $890 million in BA.
            Section 311: Contingency procedure for surface 
                    transportation
      In section 311, the House resolution creates a 
contingency procedure to permit the Transportation and 
Infrastructure Committee to increase spending above the level 
in the budget resolution on highways, highway safety, and 
transit in the surface transportation reauthorization bill it 
will consider later this year, should additional resources be 
made available to the Highway Trust Fund. The offsets may take 
the form of an increase in receipts to the Highway Trust Fund 
or a reduction in mandatory outlays from the fund.
      Subsection (a) creates a reserve fund that allows the 
Chairman of the House Budget Committee to adjust the allocation 
of BA to the Committee on Transportation and Infrastructure for 
any measure that reauthorizes surface transportation programs 
and provides new BA for highway and transit spending. The 
Budget Committee Chairman may make an adjustment to its 
allocation if the Transportation Committee reports a measure 
that exceeds the amounts specified in section 311. The 
adjustment may only be made if it is offset by changes in law, 
either included in same measure, or by previously enacted 
legislation. The changes in law may effect either direct 
spending or receipts must be appropriated to the Highway Trust 
Fund. The adjustment may be made in the BA allocation for 
fiscal year 2004 and the 5 year period, but the additional 
resources must offset the additional BA and corresponding 
outlays in each year.
      Subsection (b) creates a reserve fund that allows the 
Chairman of the House Budget Committee to adjust the allocation 
of outlays to the Committee on Appropriations for any measure 
that sets total obligation limitations greater than $38.5 
billion for fiscal year 2004 for spending from the Highway 
Trust Fund. In addition, the amount of the adjustment must be 
offset by increases in resources dedicated to the Highway Trust 
Fund in fiscal year 2004 as previously referred to in 
subsection (a).
Senate Amendment
      In general, a reserve fund 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 some cases--see sections 211 and 212--the 
discretionary spending limits) once certain conditions 
specified in the reserve fund have been met. The authority to 
make these adjustments is solely within the discretion of the 
Chairman and may be made when the specified committee of 
jurisdiction reports a measure that satisfies all the 
conditions set out in the reserve fund.
            Section 211: Adjustment for special education
      The Senate amendment contains a mechanism to make 
additional resources available to the Committee on 
Appropriations specifically for the Part B grant program under 
the Individuals with Disabilities Education Act (IDEA). The 
mechanism will make available an additional $205 million for 
fiscal year 2004 and $209 million for fiscal year 2005 after 
enactment of a bill reported by the Committee on Health, 
Education, Labor and Pensions reauthorizing IDEA and only if 
the appropriators provide more than the base amounts described 
in the reserve. Additionally, the amendment requires the 
reauthorization bill to provide an allowance of uniform 
discipline policies for all students; local fiscal relief; and 
to minimize the over-identification of students with 
disabilities.
            Section 212: Adjustment for highways and highway safety and 
                    transit
      The Senate amendment provides a mechanism to make 
additional resources available to the appropriate authorizing 
committees and the Committee on Appropriations for highway and 
transit programs once the reauthorization of the Transportation 
Equity Act for the 21st Century (TEA-21) is enacted, provided 
that the reauthorization includes new governmental receipts for 
the highway trust fund--without increasing the deficit. The 
amendment makes no assumption with respect to the floor 
procedures required to bring together the portions of this 
legislation that fall within the jurisdiction of various 
committees of the Senate. Therefore the amendment names all 
three authorizing committees (the Committee on the Environment 
and Public Works, the Committee on Banking, Housing and Urban 
Affairs and the Committee on Commerce, Science and 
Transportation). The amendment further assumes that the 
additional funding facilitated by this section will be provided 
in the form of new governmental receipts in a measure reported 
by the Committee on Finance, net of the 25% income tax offset 
as is customarily scored by the Joint Committee on Taxation.
            Section 213: Reserve fund for Medicare
      The Senate amendment provides up to $400 billion for the 
period of fiscal years 2004 through 2013 for legislation that 
improves the Medicare program and makes prescription drugs more 
accessible for those covered by Medicare. During the markup an 
amendment offered by Senator Feingold was agreed to which 
provides that the legislation may also promote geographic 
equity payments. The adjustment may be made only if the 
Committee on Finance reports a bill that strengthens and 
enhances the Medicare program as well as improves the access of 
beneficiaries to prescription drugs or promotes geographic 
equity.
            Section 214: Reserve fund for health insurance for the 
                    uninsured
      The Senate amendment provides up to $88 billion for the 
period of fiscal years 2004 through 2013 for legislation that 
provides health insurance for the uninsured. The adjustment may 
be made only if the Committee on Finance reports a bill that 
provides health insurance for the uninsured--which may include 
a measure providing for tax deductions for the purchase of 
health insurance for, among others, moderate income individuals 
not receiving health insurance from their employers.
            Section 215: Reserve fund for children with special needs
      The Senate amendment creates a reserve for legislation 
that provides states with the option to expand Medicaid 
coverage for children with special needs. The adjustment may be 
made only if the Committee on Finance reports a bill that does 
not exceed $43 million in new budget authority and $42 million 
in outlays for fiscal year 2004, and $7.462 billion in new 
budget authority and $7.262 billion in outlays for the period 
of fiscal years 2004 through 2013.
            Section 216: Reserve fund for Medicaid reform
      The Senate amendment provides up to $12.782 billion 
through 2010 for legislation that reforms the Medicaid program. 
The adjustment may be made only if the Committee on Finance 
reports a bill that provides significant reform of the Medicaid 
program. The adjustments may be made only if the Finance 
Committee reports a bill that does not exceed $3.258 billion in 
new budget authority and outlays for 2004, $8.944 billion in 
new budget authority and outlays for the period of fiscal years 
2004 through 2008, $12.782 billion in new budget authority and 
outlays for the period of fiscal years 2004 through 2010, and 
is deficit neutral for the period of fiscal years 2004 through 
2013.
            Section 217: Reserve fund for Project Bioshield
      The Senate amendment provides up to $5.593 billion over 
the life of the resolution for legislation that facilitates 
procurement for inclusion by the Secretary of Health and Human 
Services in the Strategic National Stockpile of countermeasures 
necessary to protect the public health from current and 
emerging threats of chemical, biological, radiological, or 
nuclear agents. The adjustments may be made only if the 
Committee on Health Education, Labor and Pensions reports a 
bill that provides no more than $890 million in new budget 
authority (and $575 million in outlays) for fiscal year 2004 
and $5.593 billion in new budget authority and outlays for the 
period of fiscal years 2004 through 2013.
            Section 218: Reserve fund for the state grant program and 
                    ANWR receipts
      The Senate amendment provides up to $250 million per year 
(beginning in fiscal year 2006) for legislation that provides 
additional resources for the state grant program funded from 
the Land and Water Conservation Fund. The adjustment is 
conditioned upon two events: the enactment of legislation that 
yields offsetting receipts (reflected in the resolution as a 
reduction in outlays) from the opening of the Arctic National 
Wildlife Refuge and subsequent reporting of a bill from the 
Committee on Energy and Natural Resources that dedicates a 
portion of these receipts to the Land and Water Conservation 
Trust Fund for the grant program.
            Section 219: Reserve fund for State Children's Health 
                    Insurance Program
      The Senate amendment provides up to $1.825 billion in new 
budget authority for legislation that extends the availability 
to states of expired State Children's Health Insurance Program 
allotments (from 1998 and 1999) and expiring 2000 allotments. 
The adjustments may be made only if the Committee on Finance 
reports a bill that provides no more than $1.26 billion in new 
budget authority (and $85 million in outlays) for fiscal year 
2003, $1.33 billion in new budget authority (and $85 million in 
outlays) for fiscal year 2004, $1.95 billion in new budget 
authority (and $845 million in outlays) for the period of 
fiscal years 2003 through 2008, and $1.825 billion in new 
budget authority (and $975 million in outlays) for the period 
of fiscal years 2003 through 2013.
            Section 319: Reserve fund to strengthen Social Security
      Section 319 of the Senate amendment was adopted as part 
of an amendment that reduced to $350 billion the reconciliation 
instruction to the Committee on Finance. It purports to hold in 
reserve $396 billion to extend the solvency of the Social 
Security trust funds, but provides no policy directive for how 
to accomplish this. On its face, it would permit the Committee 
on Finance to spend $396 billion on any program so long as it 
was part of legislation that for instance, reduced benefits or 
increased the retirement age, and thus extended solvency.
      Past practice has been to include the effect of the 
policies described in a reserve fund in the functional levels 
and aggregates of the budget resolution but to withhold the 
funds from the committee's 302(a) allocation. The language of 
section 319 does not conform to this model. Rather, it entirely 
eliminates the $396 billion from the budget--or in other words, 
reduces the deficit. If the authority in this section were 
invoked it would result in a $396 billion increase in the 
deficit. It is not clear, how a deficit increase would 
contribute to the solvency of Social Security trust funds.
            Section 329: Reserve fund for possible military action and 
                    reconstruction in Iraq
      Section 329 of the Senate amendment was adopted as part 
of an amendment that reduced the reconciliation instruction to 
the Finance Committee by $100 billion and thus increased taxes 
by $10 billion each year 2004 through 2013. It purports to hold 
this $100 billion in reserve for the Committee on 
Appropriations to pay for military action and reconstruction in 
Iraq over the period of 2003 through 2013. Because this reserve 
can only be triggered for an appropriations bill, it would more 
appropriately be a cap adjustment instead of a reserve fund.
      Past practice has been to include the effect of the 
policies described in a reserve fund in the functional levels 
and aggregates of the budget resolution but to withhold the 
funds from the committee's 302(a) allocation. The language of 
section 329 does not conform to this model. Rather it entirely 
eliminates the $100 billion from the budget--or in other words, 
it reduces the deficit by that amount over the 10-year period 
ending in 2013. If the authority in this section were invoked, 
it would result in up to a $100 billion increase in the 
deficit.
Conference Agreement
            Section 401. Reserve fund for Medicare
      Section 401 of the Conference Agreement permits the 
appropriate Budget Committee Chairman to adjust committee 
allocations and other appropriate budgetary aggregates and 
allocations for reported legislation (and amendments thereto, 
or any conference report thereon) for Medicare-related 
legislation.
      Section 401(a) of the Conference Agreement establishes a 
Medicare reserve fund for the House. The reserve fund permits 
the Chairman of the Committee on the Budget to adjust the 
levels in the budget resolution to accommodate certain 
Medicare-related legislation. The Chairman may make an 
adjustment to the separate Medicare allocation to the Ways and 
Means Committee and the Energy and Commerce Committee for 
legislation that provides a prescription drug benefit and 
modernizes Medicare, and provides adjustments to the Medicare 
program on a fee-for-service, capitated, or other basis. The 
amount of the adjustment for this legislation may not exceed 
$7.0 billion in budget authority and outlays for fiscal year 
2004 and $400 billion in budget authority and outlays for 
fiscal years 2004 through 2013. The adjustment is made to the 
separate allocation for Medicare, regardless of the committee 
that reports the measure.
      Section 401(b) of the Conference Agreement sets forth a 
Medicare reserve fund for the Senate and also provides up to 
$400 billion for the period of fiscal years 2004 through 2013 
for legislation that improves the Medicare program and makes 
prescription drugs more accessible for those covered by 
Medicare. The legislation may also promote geographic equity 
payments. The Chairman of the Committee on the Budget may make 
an adjustment only if the Committee on Finance reports a bill 
that strengthens and enhances the Medicare program as well as 
improves the access of beneficiaries to prescription drugs and 
does not exceed $7.0 billion in new budget authority and 
outlays for fiscal year 2004 and $400 billion fiscal years 
2004-2013.
      The Senate conferees recognize the need to enhance both 
the benefits and structure of the Medicare program in order to 
provide a better system for seniors. In addition to providing 
an integrated prescription drug benefit, the Conferees support 
efforts to take advantage of competition in order to enhance 
seniors' medical benefits which are currently lacking in our 
present system. This could include access to preventive care 
services, disease management and catastrophic protection 
against high hospital costs.
      While considering benefit expansions, however, it is 
critical to recognize the long-term unfunded promises in the 
Medicare program. The President's budget submission includes 
sobering information on the extent of Medicare's long-term 
unfunded promises. According to the Medicare Trustees' most 
recent report, the Hospital Insurance Trust Fund is expected to 
be exhausted in 2026--four years earlier than estimated in the 
2002 report.
      Medicare actuaries project a 75-year unfunded promise to 
the HI fund of $5 trillion. However, this only tells half the 
story. It does not include the Part B program. Medicare 
beneficiary premiums only cover 25 percent of these costs. The 
remaining 75 percent of expenses are not covered by any 
specific or dedicated financing source. The Senate conferees 
believe it is artificial to separate Part A and B. Policy 
makers must look at the total expenditures for Medicare. From 
this perspective Medicare's unfunded promises are $13 trillion.
            Section 402. Reserve fund for Medicaid reform
      Section 402 of the Conference Agreement includes a 
reserve fund to reform the Medicaid program. Both the House 
resolution and the Senate amendment included reserve funds this 
general purpose. The reserve fund, which applies in both the 
House and the Senate, permits the appropriate Budget Committee 
Chairman to adjust the appropriate committee allocations of the 
Committee on Energy and Commerce in the House, or the Committee 
on Finance in the Senate, and other budgetary aggregates and 
allocations for reported legislation (and amendments thereto, 
or any conference report thereon) that modernizes Medicaid. The 
adjustments in the allocations may not exceed $3.258 billion in 
new BA and outlays for fiscal year 2004; and $8.944 billion in 
new BA and outlays for fiscal years 2004 through 2008, and 
$12.782 billion for fiscal years 2004 through 2010.
            Section 403. Reserve fund for State Children's Health 
                    Insurance Program
      Section 403 of the Conference Agreement retains the 
reserve fund for the extension of the State Children's Health 
Insurance Program [SCHIP] included in section 219 of the Senate 
amendment. The reserve fund, which applies in both the House 
and the Senate, permits the appropriate Budget Committee 
Chairman to adjust the committee allocations for the Committee 
on Ways and Means in the House, or the Committee Finance in the 
Senate, and other appropriate budgetary aggregates and 
allocations for reported legislation (and amendments thereto, 
or any conference report thereon) that extends the availability 
of expired and expiring allotments of the State Children's 
Health Insurance Program [SCHIP]. The adjustments in the 
allocations may not exceed $1.260 billion in new BA and $85 
million in outlays for fiscal year 2003; $1.350 billion in new 
BA and $105 million in outlays for fiscal year 2004; $1.355 
billion in new BA and $1.425 million in outlays for fiscal year 
2004 through 2008; and $1.355 billion in new BA and $1.680 
million in outlays for the period of fiscal years 2004 through 
2013.
            Section 404. Reserve fund for Bioshield
      Section 404 of the Conference Agreement establishes 
separate procedures in the House and the Senate reserving 
amounts for legislation providing countermeasures to 
international terrorism.
      Section 404(a) of the Conference Agreement adopts the 
reserve fund for bioshield included in section 303 the House 
resolution. The reserve fund permits the House Budget Committee 
Chairman to adjust committee allocations and other appropriate 
budgetary aggregates and allocations for a reported measure 
(and amendments thereto, or any conference report thereon) that 
establishes either a new mandatory or discretionary program to 
accelerate the research, development, and purchase of 
biomedical threat countermeasures. If the program established 
is mandatory, the adjustment may not exceed $890 million in new 
mandatory BA for fiscal year 2004, and $3.418 billion in new BA 
and outlays for fiscal years 2004 through 2008. If the program 
authorized is discretionary, the adjustment may not exceed $890 
million in new mandatory BA for the measure appropriating funds 
for the new program. If the program includes both mandatory and 
discretionary components or if two bills are enacted, the 
maximum adjustment the chairman may make in fiscal year 2004 is 
$890 million in BA.
      Section 404(b) of the Conference Agreement adopts the 
reserve fund for bioshield included in section 217 of the 
Senate Amendment with minor modifications. The reserve fund 
permits the appropriate Budget Committee Chairman to adjust 
committee allocations and other appropriate budgetary 
aggregates and allocations for reported legislation (and 
amendments thereto, or any conference report thereon) that 
establishes a new mandatory program to accelerate the research, 
development, and purchase of biomedical threat countermeasures. 
For the adjustment to take place, the measure may provide no 
more than $890 million in new mandatory BA and $575 million in 
outlays for fiscal year 2004, and $5.593 billion in new 
mandatory BA and outlays for fiscal years 2004 through 2013.
            Section 405. Reserve fund for health insurance for the 
                    uninsured
      Section 405 of the Conference Agreement retains the 
Senate reserve fund for health insurance for the uninsured 
included in section 214 of the Senate amendment. The reserve 
fund permits the Chairmen of the respective Budget Committees 
to adjust the allocation of BA and outlays to the appropriate 
committee of jurisdiction in the House, or the Committee on 
Finance in the Senate, for any measure that provides health 
insurance for the uninsured (including a measure providing for 
tax deductions for the purchase of health insurance for, among 
others, moderate income individuals not receiving health 
insurance for from their employers). The adjustments in the 
allocations may not exceed $28.5 billion in new BA and outlays 
for fiscal years 2004 through 2008, and $50 billion in new BA 
and outlays for the period of fiscal years 2004 through 2013.
            Section 406. Reserve fund for children with special meeds
      Section 406 of the Conference Agreement retains the 
reserve fund for children with special needs included in 
section 215 of the Senate amendment and which was accommodated 
in the allocations in the House resolution. The reserve fund, 
which applies in both the House and the Senate, permits the 
appropriate Budget Committee Chairman to adjust the committee 
allocations for the Committee on Energy and Commere in the 
House, or the Committee on Finance in the Senate, and other 
appropriate budgetary aggregates and allocations for reported 
legislation (and amendments thereto, or any conference report 
thereon) that provides states with the option to expand 
Medicaid coverage for children with special needs, allowing 
families of disabled children to purchase coverage under the 
Medicaid program for such children. The adjustments in the 
allocations may not exceed $43 million in BA and $42 million in 
outlays for fiscal year 2004, $1.627 billion in BA and $1.566 
billion in outlays for the period of fiscal years 2004 through 
2008. and $7.462 billion in BA and $7.262 billion in outlays 
for the period of fiscal years 2004 through 2013.
            Section 411. Contingency procedure for surface 
                    transportation
      Section 411 of the Conference agreement establishes a 
separate contingency procedure for the Highway Trust Fund, 
which will be reauthorized this session of Congress. The 
contingency procedure, which applies in both the House and the 
Senate, permits the appropriate Budget Committee Chairman to 
accommodate legislation providing additional highway spending 
to the extent it is offset by additional revenues or a 
reduction in mandatory spending in the Highway Trust Fund. The 
procedure permits the Budget Committee Chairmen to increase the 
302(a) allocation of the Committee on Transportation and 
Infrastructure in 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 in the Senate, for legislation that provides in 
excess of the level assumed in the budget resolution but only 
to the extent to which it has been offset by new revenue or 
savings in mandatory outlays. The offsets must be dedicated to 
the Highway Trust Fund and can be made in the same measure or 
legislation enacted earlier in the 108th Congress. In view of 
the fact that outlays are determined by obligation limits, 
subsection (a) also permits the chairman to make a 
corresponding change in outlays for the committee setting the 
obligation limits. Again, legislation must have first been 
enacted to offset the increase in contract authority.
            Section 421. Supplemental appropriations for fiscal year 
                    2003
      If a measure making supplemental appropriations for 
fiscal year 2003 is enacted before May 1, 2003, the Chairmen of 
the Committees on the Budget are permitted to adjust the 
appropriate allocations and aggregates of budget authority and 
outlays in the budget resolution to reflect the difference 
between that measure and the levels assumed in that resolution. 
The Conference Agreement reflects the President's requested 
level of $74.7 billion.

                           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.
House Resolution
            Section 301(c). Medicare 302(a) allocation
      Section 301(c) creates a Medicare allocation to the Ways 
and Means Committee and Energy and Commerce Committee. 
Legislation changing the Medicare program must be offset in the 
first year and the 10-year period. This allocation may be 
increased should a reserve fund for specific Medicare 
modernization legislation be released. Such a measure must 
provide less than $7.5 billion in the first year, and no more 
than $400 billion over 10 years. If a measure receiving a 
Medicare allocation adjustment also includes budget authority 
not directly related to Medicare modernization, that non-
Medicare spending will be compared to the committee of 
jurisdiction's allocation.
            Section 321. Application and effects of changes in 
                    allocations and aggregates
      This section sets forth the procedures for making 
adjustments pursuant to 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 approximately 
consistent with the procedures for making adjustments for 
various initiatives under section 314 of the Congressional 
Budget Act. Subsection (a)(3) provides that in order to make 
the adjustments provided for in the reserve funds, the chairman 
of the House Budget Committee is directed to insert these 
adjustments 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.
      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, and the determination is made pursuant to section 312 of 
the Budget Act. This section of the Budget Act provides the 
chairman of the Budget Committee with the authority to advise 
the chairman of the House on the appropriate levels and 
estimates related to legislation being considered on the floor.
      Subsection (d) provides for 5-year enforcement periods. 
Though the authorizing committees receive a 10-year allocation, 
under Section 321 (d) of the House resolution, the Budget 
Committee will apply the various relevant provisions of the 
Congressional Budget Act for only the first and 5-year time 
period.
            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 does two things: 1) It limits 
the total amount of advance appropriations; and 2) It limits 
the accounts for which advanced appropriations may be made. It 
establishes this procedure with regard to any advance 
appropriation for fiscal year 2004 and any year thereafter. An 
exception is provided for those programs specified in the Joint 
Statement of Managers, but the total advance appropriation must 
be lower than a specified level. The section defines an 
`advance appropriation' as any new discretionary budget 
authority making general appropriations or continuing 
appropriations for fiscal year 2004 that first becomes 
available after 2004. This limitation is enforced by a point of 
order that may be raised against any measure including an 
advance appropriation not falling within the exception. The 
result of the point of order would be to remove the advance 
appropriation, but the measure would continue to be considered.
            Section 402. Compliance with section 13301 of the Budget 
                    Enforcement Act of 1990
      Section 402 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 
including administrative expenses in the budget resolution. 
This change was intended to make the budget resolution 
consistent with CBO's baseline which does not include 
administrative expenses for Social Security. At the same time, 
the Budget Committees believe 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).
Senate Amendment
            Section 201. Extension of supermajority enforcement
      The Senate amendment extends the 60-vote requirement for 
5 years (until September 30, 2008), for waivers and appeals 
with respect to those Budget Act points of order for which this 
supermajority requirement expired on September 30, 2002 (and 
was temporarily extended through April 15, 2003 in S. Res. 304, 
107th Congress).
            Section 202. Discretionary spending limits in the Senate
      The Senate amendment sets out discretionary spending 
limits for the Senate for the first two years covered by the 
budget resolution (FY 2004 and 2005) with respect to both 
budget authority and outlays. It also sets limits for FY 2003 
because no FY 2003 budget resolution was ever adopted. 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 FY 1994 
Concurrent Resolution on the Budget; section 24 of H. Con. Res. 218 
(103rd Cong.) the FY 1995 Concurrent Resolution on the Budget; Section 
201 of H. Con. Res. 67 (104th Cong.) the FY 1996 Concurrent Resolution 
on the Budget; Section 301 of H. Con. Res. 178 (104th Cong.) the FY 
1997 Concurrent Resolution on the Budget; Section 201 of H. Con. Res. 
84 (105th Cong.) the FY 1998 Concurrent Resolution on the Budget (all 
establishing multiyear caps); Section 206 of H. Con. Res. 290 (106th 
Cong.) the FY 2001 Concurrent Resolution on the Budget; Section 203 of 
H. Con. Res. 83 (107th Cong.) the FY 2002 Concurrent Resolution on the 
Budget (both providing a mechanism to accommodate an increase to the 
currect year's statutory cap).
---------------------------------------------------------------------------
      The Senate amendment provides that the following amounts 
will be the discretionary spending limits:
            For fiscal year 2003: $770.860 billion in new 
        budget authority and $771.442 billion in outlays for 
        the discretionary category; $31.264 billion in outlays 
        for the highway category, and $1.436 billion in new 
        budget authority and $6.551 billion in outlays for the 
        transit category, for a total of $772.296 billion in 
        new budget authority and $809.257 billion in outlays.
            For fiscal year 2004: $788.459 billion in new 
        budget authority and $797.890 billion in outlays for 
        the discretionary category; $32.016 billion in outlays 
        for the highway category, and $2.209 billion in new 
        budget authority and $6.746 billion in outlays for the 
        transit category, for a total of $790.668 billion in 
        new budget authority and $836.652 billion in outlays.
            For fiscal year 2005: $813.597 billion in new 
        budget authority and $814.987 billion in outlays for 
        the discretionary category; $34.665 billion in outlays 
        for the highway category, and $2.544 billion in new 
        budget authority and $7.109 billion in outlays for the 
        transit category, for a total of $816.141 billion in 
        new budget authority and $856.761 billion in outlays.
      The Senate amendment 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 spending limit, 
the section 302(a) allocations 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. The 
Senate amendment provides that spending and allocations may be 
adjusted for: (1) emergency spending, (2) funding for Part B 
grants under the Individuals with Disabilities Education Act 
(IDEA), and (3) highway and transit programs.
      These discretionary spending limits are enforced by a 60-
vote point of order on two fronts: (1) there will be a point of 
order against the FY 2005 budget resolution if it exceeds the 
limits set forth in this resolution (or against any revision to 
the FY 2004 resolution that does so) and (2) there will be a 
point of order against any appropriations bill that causes the 
discretionary limits to be exceeded.
            Section 203. Restriction on advance appropriations in the 
                    Senate
      The Senate amendment once again includes language 
limiting the use of advance appropriations. This restriction 
was first included in the FY 2001 budget resolution and was 
included and revised in the FY 2002 resolution as well. The 
Senate amendment continues to limit advance appropriations to 
an annual limit of $23.158 billion with respect to both the FY 
2004 and 2005 appropriations bills and to those programs, which 
are listed in the statement of managers accompanying the 
conference report on the budget resolution. The amendment also 
continues the exception for advances with respect to the 
Corporation for Public Broadcasting.
      The list of permissible advances is as follows:

             ACCOUNTS IDENTIFIED FOR ADVANCE APPROPRIATIONS

Interior
    Elk Hills
Labor, HHS
    Employment and Training Administration
    Education for the Disadvantaged
    School Improvement
    Children and Family Services (Head Start)
    Special Education
    Vocational and Adult Education
Treasury, Postal
    Payment to Postal Service
Veterans', HUD
    Section 8 Renewals
            Section 204. Emergency legislation
      With respect to emergency spending, the Senate amendment 
addresses two issues: the ability to designate spending as an 
emergency and the restatement of the 60-vote point of order in 
the Senate with respect to the use of that designation.
      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 with respect to 
the sequestration mechanism which served as the underlying 
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, the Senate amendment 
reestablishes the authority of Congress to designate spending 
and revenue changes as an emergency. In doing so, the 
resolution specifies the criteria used in the definition of an 
emergency and requires committee reports and statements of 
managers to justify the use of emergency designations vis a vis 
these criteria. The criteria are as follows:
      An expenditure may be designated an emergency if it is--
            (i) necessary, essential, or vital (not merely 
        useful or beneficial);
            (ii) sudden, quickly coming into being, and not 
        building up over time;
            (iii) an urgent, pressing, and compelling need 
        requiring immediate action;
            (iv) unforeseen (see below), unpredictable, and 
        unanticipated;
            Note: an emergency that is part of an aggregate 
        level of anticipated emergencies, particularly when 
        normally estimated in advance, is not unforeseen.
      If an item of discretionary spending is accompanied by an 
emergency designation then the discretionary spending limit and 
the allocation to the Committee on Appropriations will be 
adjusted accordingly (as well as all other appropriate levels 
in the resolution). 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 
will be adjusted accordingly (again, as well as all other 
appropriate levels in the resolution).
      The Senate amendment also revises the Senate's emergency 
designation point of order. This point of order was first 
included in the FY 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. Once the point 
of order is made, it will require 60-votes to waive the point 
of order and keep the designation. If the motion to waive is 
not successful, the designation is removed from the measure 
while the spending or revenue provision remains, potentially 
making the measure subject to a Budget Act point of order, 
which too would 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).
      The language in the Senate amendment differs from past 
resolutions only to the extent that the references to sections 
251 and 252 of the BBEDCA have been replaced with a cross 
reference to subsection (a) of this section, which provides the 
authority for the use of the designation. In addition, spending 
for homeland security programs would be exempt from the point 
of order as has been the case with defense spending.
            Section 205. Pay-as-you-go point of order in the Senate
      The Senate amendment revises and extends the Senate's 
pay-as-you-go point of order. The original pay-as-you-go point 
of order first appeared in the FY 1994 budget resolution. Its 
most recent incarnation expired in its entirety on September 
30, 2002. The point of order was revised and extended in S. 
Res. 304 (107th Congress) through April 15, 2003. S. Res 304 
included a new provision within the pay-as-you-go rule making 
the rule applicable to mandatory spending in appropriation 
bills in order to prevent the exploitation of the fact that 
there were no limits on discretionary spending for FY 2003 due 
to the expiration of the discretionary spending limits and the 
lack of a FY 2003 budget resolution.
      The pay-as-you-go point of order included in the Senate 
amendment does not retain the expanded application to 
appropriation bills set out in S. Res. 304. Rather it resembles 
the previous versions of the rule with one specific exception: 
it will not apply to any spending or revenue changes that 
result from the implementation of the reconciliation 
instruction set out in section 104 of the Senate amendment (up 
to $350 billion). It will nonetheless apply to all other 
mandatory spending and revenue changes provided for in the 
Senate amendment.
            Section 221. Authority to make adjustments for changes in 
                    concepts and definitions
      The Senate amendment provides that upon enactment of 
legislation that changes the nature of funding of an existing 
program from discretionary to mandatory (or vice versa), the 
Chairman of the Committee on the Budget will immediately adjust 
the levels in this resolution (including the discretionary 
spending limits) to reflect such a change.
            Section 222. Application and effect of changes in 
                    allocations and aggregates
      The Senate amendment contains language identical to 
section 221 of the FY 2002 budget resolution, which makes clear 
when adjustments made under Title II of the budget resolution 
will take effect.
            Section 223. Exercise of rulemaking powers
      The Senate amendment includes language identical to 
section 222 of the FY 2002 budget resolution which simply 
states Congress' authority to legislate rule of procedure for 
either chamber.
Conference Agreement
            Section 501. Restrictions on advance appropriations
      Section 501 of the Conference Agreement retains the 
language of both section 401 of the House resolution and 
section 203 of the Senate amendment.
      Subsection (a) applies to the House; it limits which 
programs may receive an advance appropriation and an overall 
amount of advanced appropriations. Advance appropriations may 
be provided for the accounts in the appropriation bills listed 
below, provided that their sum does not exceed $23.158 billion 
in budget authority. Advance appropriations are defined as any 
discretionary budget authority in a measure for fiscal year 
2004 which first becomes available in a year after that fiscal 
year. This limitation is enforced by a point of order that may 
be raised against any measure including an advance 
appropriation not falling within the exception. The result of 
the point of order would be to remove the advance 
appropriation, but the measure would continue to be considered.

            ACCOUNTS IDENTIFIED FOR ADVANCED APPROPRIATIONS

          Part A: Advanced Appropriations for Fiscal Year 2005

Interior Appropriations
    Elk Hills (89 5428 02 271)
Labor, Health and Human Services, Education Appropriations
    Employment and Training administration (16 0174 01 504)
    Education for the Disadvantaged (91 0900 01 501)
    School Improvement (91 1000 01 501)
    Children and Family Services [Head Start] (75 1536 01 506)
    Special Education (91 0300 01 501)
    Vocational and Adult Education (91 0400 01 501)
Treasury, General Government Appropriations
    Payment to Postal Service (18 1001 01 372)
Veterans, Housing and Urban Development Appropriations
    Section 8 Renewals (86 0319 01 604)

          Part B: Advanced Appropriations for Fiscal Year 2006

Labor, Health and Human Services, Education Appropriations
    Corporation for Public Broadcasting (20 0151 01 503)

      Subsection (b) applies in the Senate and is virtually 
identical to the language in section 203 of the Senate 
amendment and sets an overall limit of $23.158 billion per 
year. The Conference Agreement modifies the Senate language 
only to the extent that the explicit exception for the 
Corporation for Public Broadcasting is moved from the text of 
the resolution to the list set out below. A conforming change 
is made to the definition of an advance appropriation to make 
clear that its inclusion on the list below, covers the advance 
for both the 1st and 2nd years.
      The list of permissible advances is as follows:

             ACCOUNTS IDENTIFIED FOR ADVANCE APPROPRIATIONS

Interior
    Elk Hills (89 5428 02 271)
Labor, HHS
    Corporation for Public Broadcasting (20 0151 01 503)
    Employment and Training Administration (16 0174 01 504)
    Education for the Disadvantaged (91 0900 01 501)
    School Improvement (91 1000 01 501)
    Children and Family Services (Head Start) (75 1536 01 506)
    Special Education (91 0300 01 501)
    Vocational and Adult Education (91 0400 01 501)
Treasury, Postal
    Payment to Postal Service (18 1001 01 372)
Veterans', HUD
    Section 8 Renewals (86 0319 01 604)
            Section 502. Emergency legislation
      Section 502 the House recedes to the Senate on its 
regimen relating to the budgetary treatment of emergencies. 
With some modifications, it extends to the House the authority 
of Congress to designated spending-related legislation as an 
emergency for purposes of budget enforcement, adopts criteria 
for emergency spending, and requires committees to justify 
emergency-designated provisions. The point of order in the 
Senate amendment, however, continues to apply only to the 
Senate.
      Section 502(a) of the Conference Agreement includes a 
statement of intent that, in the absence of the extension of 
the discretionary spending limits and PAYGO requirements under 
the Balanced Budget and Emergency Deficit Control Act of 1985, 
the section enables Congress to designate provisions of 
legislation as emergencies. The House conferees note that this 
regimen is similar to H.R. 853, which was reported by the House 
Budget Committee in the 106th Congress.
      Subsections (b) sets forth the procedure in the House 
governing emergencies designated spending (or receipts). It 
extends the automatic exemption for emergency-designated 
spending (and receipts) from the budget resolution, which was 
in effect until the statutory discretionary spending limits and 
PAYGO requirements expired last September. If an urgent need 
arises after the budget resolution is adopted, the committee of 
jurisdiction could designate the emergency-related provisions 
as an emergency requirement pursuant to this section.
      Instead of adjusting the allocations and budget 
aggregates by the designated amount, subsection (b) provides 
that spending (or receipts) resulting from such measure would 
not be counted for purposes of determining whether the measure 
complies with the budget resolution or related requirements 
under the Budget Act of 1974. The conferees note that this is 
consistent with congressional scoring conventions prior to the 
Balanced Budget Act of 1997. Assuming the measure 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.
      In subsection (b)(2), committees reporting legislation 
that includes an emergency designation are required to 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 the following criteria:
            Necessary, essential, or vital;
            Sudden, quickly coming into being and building up 
        over time;
            Urgent, pressing and completing need requiring 
        immediate action;
            Unforeseen unpredictable and anticipated; and
            Not permanent, temporary in nature.
      The conferees note that this definition was originally 
developed by the previous Bush Administration as part of an OMB 
Circular (A-11) on the preparation and submission of budget 
estimates.
      Section 502(c) of the Conference Agreement retains the 
language of section 204 of the Senate amendment (which provides 
the authority to use an emergency designation and creates a 
supermajority point of order to police the use of the 
designation) with a number of modifications.
      The Conference Agreement strengthens the requirement that 
committees in both Houses provide a justification for use of 
the designation vis a vis the criteria listed in subsection 
(b)(2) and (c)(3).
      The point of order with respect to the use of the 
designation applies only in the Senate and contains some 
technical changes with respect to the execution of the point of 
order that were recommended by the Parliamentarian of the 
Senate. It is the view of the Conferees that the exception for 
``homeland security'' spending could not be included at this 
time due to the lack of consensus between the Congress and the 
Executive branch as to exactly what programs, projects or 
activities should qualify for the exception. It may be possible 
to do so in the future.
            Section 503. Extension of supermajority enforcement
      Section 503 of the Conference Agreement retains the 
language of section 201 of the Senate amendment extending 60-
vote enforcement for five years.
            Section 504. Discretionary spending limits in the Senate
      Section 504 of the Conference Agreement retains the 
language of section 202 of the Senate amendment which sets 
forth discretionary spending limits in the Senate only for 
fiscal years 2003, 2004 and 2005 with a number of 
modifications. The limits BA for FY 2003 now include the 
amounts included in the supplemental appropriations bill that 
is being considered at the same time as the conference on the 
budget resolution, with outlays reflected accordingly.
      The Conference Agreement provides that the following 
amounts will be the discretionary spending limits in the 
Senate:
            For fiscal year 2003: $839.118 billion in new 
        budget authority and $805.146 billion in outlays for 
        the discretionary category; $31.264 billion in outlays 
        for the highway category, and $1.436 billion in new 
        budget authority and $6.551 billion in outlays for the 
        transit category, for a total of $840.554 billion in 
        new budget authority and $842.961 billion in outlays.
            For fiscal year 2004: $782.999 billion in new 
        budget authority and $822.563 billion in outlays for 
        the discretionary category; $31.555 billion in outlays 
        for the highway category, and $1.461 billion in new 
        budget authority and $6.634 billion in outlays for the 
        transit category, for a total of $784.460 billion in 
        new budget authority and $860.752 billion in outlays.
            For fiscal year 2005: $812.598 billion in new 
        budget authority and $817.883 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 $814.086 billion in 
        new budget authority and $858.002 billion in outlays.
      The Conference Agreement also provides that these limits 
may be adjusted for emergency spending (pursuant to section 
502) and for additional resources for transportation (pursuant 
to section 411).
            Section 505. Pay-As-You-Go Point of Order in the Senate
      The Senate Pay-As-You-Go Point of Order Included in the 
Conference Agreement reflects the language in the Senate-
reported resolution and will apply on a post-budget resolution 
policy basis; that is, it will not apply to direct spending or 
revenue changes assumed in this resolution. To accomplish this, 
a scorecard will be maintained by the Chairman of the Committee 
on the Budget that will set out the total level of change to 
the deficit assumed by this budget resolution Conference 
Agreement. Subsequent legislation will be measured against 
these balances.
      The following table shows the total of revenue and direct 
spending policy assumptions in the Conference Agreement on the 
budget resolution:

                            PAY GO SCORE CARD

2003..........................................................    64.789
2004..........................................................   155.946
2005..........................................................   149.364
2006..........................................................   133.611
2007..........................................................   119.017
2008..........................................................   121.625
2009..........................................................    85.416
2010..........................................................    87.650
2011..........................................................   218.726
2012..........................................................   302.840
2013..........................................................   316.973
2004-08.......................................................   679.563
2004-13.......................................................  1691.168
            Section 506. Compliance with Section 13301 of the Budget 
                    Enforcement Act of 1990
      Section 506 retains the language of section 402 of the 
House resolution regarding the budgetary treatment in the House 
of discretionary spending for the Social Security 
Administration.
            Section 507. Application and effect of changes in 
                    allocations and aggregates
      Section 507 of the Conference Agreement retains the 
language of section 321 of the House resolution (which is 
virtually identical to Section 204 of the Senate amendment) 
clarifying the process for implementing any adjustment made 
pursuant to the reserve funds and the status of these adjusted 
levels. It further clarifies that the Budget Committee 
determines scoring for purposes of points of order. The section 
also makes clear that, for the purpose of enforcing provisions 
of the Congressional Budget Act in the House, legislation must 
be within a reporting committee's allocation for fiscal year 
2004 and the period of fiscal years 2004 through 2008.
            Section 508. Adjustments to reflect changes in concepts and 
                    definitions
      Section 508 of the Conference Agreement retains the 
language of section 221 of the Senate amendment and applies it 
to the House. 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 immediately adjust the levels in this 
resolution (including the discretionary spending limits) to 
reflect such a change.

                              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 among each of the appropriate 
committees. The allocations are as follow:

   ALLOCATION OF SPENDING AUTHORITY TO HOUSE APPROPRIATIONS COMMITTEE
                        [In millions of dollars]
------------------------------------------------------------------------
                                                    2003         2004
------------------------------------------------------------------------
Discretionary Action:
    BA........................................      840,554      784,460
    OT........................................      842,961      860,752
Current Law Mandatory:
    BA........................................      391,344      426,127
    OT........................................      378,717      409,870
------------------------------------------------------------------------


                                                         ALLOCATIONS OF SPENDING AUTHORITY TO HOUSE COMMITTEES OTHER THAN APPROPRIATIONS
                                                                                      [Dollars in millions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
            Fiscal year                 2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013       2004-08     2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Agriculture Committee:
Current Law
  BA...............................      19,840      20,509      22,792      22,501      21,709      20,518       5,720       5,897       6,014       6,028       5,991     108,029      137,679
  OT...............................      15,480      16,561      19,201      19,449      18,467      17,078       2,734       3,151       3,429       3,754       3,712      90,756      107,536
Reauthorizations:
  BA...............................  ..........  ..........  ..........  ..........  ..........      26,803      43,206      43,226      43,260      43,405      43,736      26,803      243,636
  OT...............................  ..........  ..........  ..........  ..........  ..........      25,586      43,169      43,188      43,221      43,367      43,696      25,586      242,227
Total:
  BA...............................      19,840      20,509      22,792      22,501      21,709      47,321      48,926      49,123      49,274      49,433      49,727     134,832      381,315
  OT...............................      15,480      16,561      19,201      19,449      18,467      42,664      45,903      46,339      46,650      47,121      47,408     116,342      349,763
Armed Services Committee:
Current Law:
  BA...............................      74,000      77,493      80,663      83,445      86,350      89,324      92,292      95,417      98,608     101,899     105,348     417,275      910,839
  OT...............................      73,476      77,295      80,459      83,291      86,195      89,166      92,132      95,253      98,438     101,723     105,167     416,406      909,119
Discretionary Action:
  BA...............................  ..........          70  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........          70           70
  OT...............................  ..........          34          32           4  ..........  ..........  ..........  ..........  ..........  ..........  ..........          70           70
Total:
  BA...............................      74,000      77,563      80,663      83,445      86,350      89,324      92,292      95,417      98,608     101,899     105,348     417,345      910,909
  OT...............................      73,476      77,329      80,491      83,295      86,195      89,166      92,132      95,253      98,438     101,723     105,167     416,476      909,189
Committee on Education and the Workforce:
Current Law:
  BA...............................       5,069       4,809       5,666       6,357       6,656       6,887       7,091       7,273       7,452       7,630       7,885      30,375       67,706
  OT...............................       4,516       4,121       5,053       5,637       5,942       6,212       6,401       6,572       6,733       6,897       7,138      26,965       60,706
Discretionary Action:
  BA...............................         130          39          38          38          43          43          42          45          44          44          43         201          419
  OT...............................         115          47          47          47          52          52          52          57          57          57          57         245          525
Reauthorizations:
  BA...............................  ..........         393         404         415       3,503       3,583       3,667       3,664       3,843       3,933       4,027       8,298       27,432
  OT...............................  ..........         330         402         413       2,422       3,419       3,629       3,728       3,816       3,906       3,999       6,986       26,064
Total:
  BA...............................       5,199       5,241       6,108       6,810      10,202      10,513      10,800      10,982      11,339      11,607      11,955      38,874       95,557
  OT...............................       4,631       4,498       5,502       6,097       8,416       9,683      10,082      10,357      10,606      10,860      11,194      34,196       87,295
Energy and Commerce Committee:
Current Law:
  BA...............................      10,433      10,710      11,718      11,824      12,845       7,807       7,773       7,882       8,009       8,099       8,234      54,904       94,901
  OT...............................      11,987      12,071      11,900      12,003      12,455      10,289       8,154       7,719       7,615       7,732       7,849      58,718       97,787
Discretionary Action:
  BA...............................  ..........        -170        -480        -910       1,250         749      -1,996      -2,161      -2,296      -4,780      -4,904         439      -15,698
  OT...............................  ..........        -170        -480        -910       1,250         749      -1,996      -2,161      -2,296      -4,780      -4,904         439      -15,698
Reauthorizations:
  BA...............................  ..........  ..........  ..........  ..........  ..........       5,040       5,040       5,040       5,040       5,040       5,040       5,040       30,240
  OT...............................  ..........  ..........  ..........  ..........  ..........       2,345       4,470       5,130       5,446       5,465       5,443       2,345       28,299
Total:
  BA...............................      10,433      10,540      11,238      10,914      14,095      13,596      10,817      10,761      10,753       8,359       8,370      60,383      109,443
  OT...............................      11,987      11,901      11,420      11,093      13,705      13,383      10,628      10,688      10,765       8,417       8,388      61,502      110,388
Financial Services Committee:
Current Law:
  BA...............................       6,100       7,406       8,430       8,365       7,702       7,558       7,456       7,568       7,795       7,938       8,170      39,461       78,388
  OT...............................       1,951       2,139       2,740       1,921         894         650         435         170        -228        -622        -619       8,344        7,480
Discretionary Action:
  BA...............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ...........
  OT...............................  ..........         375         525         575          50        -275        -275        -300        -300        -200  ..........       1,250          175
Total:
  BA...............................       6,100       7,406       8,430       8,365       7,702       7,558       7,456       7,568       7,795       7,938       8,170      39,461       78,388
  OT...............................       1,951       2,514       3,265       2,496         944         375         160        -130        -528        -822        -619       9,594        7,655
Government Reform Committee:
Current Law:
  BA...............................      66,645      68,243      71,550      74,376      77,325      80,696      84,320      88,242      92,163      95,997      99,999     372,190      832,911
  OT...............................      65,140      66,710      70,071      72,959      75,902      79,272      82,863      86,817      90,798      94,705      98,875     364,914      818,972
Discretionary Action:
  BA...............................  ..........          -1  ..........          -1  ..........          -1          -1          -1          -1          -1          -1          -3           -8
  OT...............................  ..........  ..........  ..........  ..........          -1  ..........          -1          -1          -1          -1          -1          -1           -6
Total:
  BA...............................      66,645      68,242      71,550      74,375      77,325      80,695      84,319      88,241      92,162      95,996      99,998     372,187      832,903
  OT...............................      65,140      66,710      70,071      72,959      75,901      79,272      82,862      86,816      90,797      94,704      98,874     364,913      818,966
Committee on House Administration:
Current Law:
  BA...............................          82          82          83          82          81          80          79          79          79          79          79         408          803
  OT...............................          85         246          38          23          54         213          79          61          55         208          48         574        1,025
International Relations Committee:
Current Law:
  BA...............................      13,633       9,825      11,398      12,424      12,665      12,912      13,162      13,417      13,679      13,911      14,147      59,224      127,540
  OT...............................      11,441      11,746      10,704      10,749      11,052      11,374      11,680      11,953      12,231      12,503      12,810      55,625      116,802
Resources Committee:
Current Law:
  BA...............................       3,832       3,840       3,676       3,740       3,739       3,050       2,981       3,039       3,112       3,196       3,272      18,045       33,645
  OT...............................       3,412       3,437       3,200       3,540       3,585       3,145       2,969       2,912       2,965       3,040       3,098      16,907       31,891
Discretionary Action:
  BA...............................           7          24         118         124         126         130         133         137         139         143         146         522        1,220
  OT...............................           7          24           9          76         109         124         127         129         132         134         139         342        1,003
Total:
  BA...............................       3,839       3,864       3,794       3,864       3,865       3,180       3,114       3,176       3,251       3,339       3,418      18,567       34,865
  OT...............................       3,419       3,461       3,209       3,616       3,694       3,269       3,096       3,041       3,097       3,174       3,237      17,249       32,894
Judiciary Committee:
Current Law:
  BA...............................       5,914       6,942       5,749       5,783       5,862       5,959       6,154       6,263       6,366       6,466       6,582      30,295       62,126
  OT...............................       5,870       6,082       6,101       5,985       5,838       5,888       6,065       6,137       6,218       6,306       6,418      29,894       61,038
Discretionary Action:
  BA...............................  ..........          19          19          19          19          19          19          19          19          19          19          95          190
  OT...............................  ..........          19          19          19          19          19          19          19          19          19          19          95          190
Total:
  BA...............................       5,914       6,961       5,768       5,802       5,881       5,978       6,173       6,282       6,385       6,485       6,601      30,390       62,316
  OT...............................       5,870       6,101       6,120       6,004       5,857       5,907       6,084       6,156       6,237       6,325       6,437      29,989       61,228
Transportation and Infrastructure Committee:
Current Law:
  BA...............................      69,531       8,038      14,449      13,581      13,345      13,583      13,804      14,129      14,407      14,798      15,284      62,996      135,418
  OT...............................      30,724      13,244      14,935      13,854      13,503      13,642      13,835      14,136      14,403      14,793      15,283      69,178      141,628
Discretionary Action:
  BA...............................  ..........       9,256       5,890       6,868       8,942      10,178      10,965       9,983      10,000      10,019      10,038      41,134       92,139
  OT...............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ...........
Reauthorizations:
  BA...............................  ..........      40,231      40,231      40,231      40,231      40,231      40,231      40,231      40,231      40,231      40,231     201,155      402,310
  OT...............................  ..........         173         441         550         588         613         626         639         639         639         639       2,365        5,547
Total:
  BA...............................      69,531      57,525      60,570      60,680      62,518      63,992      65,000      64,343      64,638      65,048      65,553     305,285      629,867
  OT...............................      30,724      13,417      15,376      14,404      14,091      14,255      14,461      14,775      15,042      15,432      15,922      71,543      147,175
Science Committee:
Current Law:
  BA...............................         130          55          56          57          59          60          61          63          65          67          68         287          611
  OT...............................         122         123         120          90          72          60          60          62          64          65          67         465          783
Small Business Committee:
Current Law:
  BA...............................         864           3           1           1           1  ..........  ..........  ..........  ..........  ..........  ..........           6            6
  OT...............................         792          -6  ..........  ..........  ..........          -1          -1          -1          -1          -1          -1          -7          -12
Veterans' Affairs Committee:
Current Law:
  BA...............................       1,171       1,311       1,297       1,310       1,319       1,324       1,310       1,291       1,254       1,207       1,158       6,561       12,781
  OT...............................       1,042       1,217       1,228       1,250       1,262       1,270       1,262       1,250       1,224       1,185       1,142       6,227       12,290
Reauthorizations:
  BA...............................  ..........         429       1,129       1,766       2,254       3,080       3,791       4,540       5,657       5,566       6,750       8,658       34,962
  OT...............................  ..........         419       1,129       1,746       2,231       3,072       3,773       4,481       5,636       5,505       6,688       8,597       34,680
Total:
  BA...............................       1,171       1,740       2,426       3,076       3,573       4,404       5,101       5,831       6,911       6,773       7,908      15,219       47,743
  OT...............................       1,042       1,636       2,357       2,996       3,493       4,342       5,035       5,731       6,860       6,690       7,830      14,824       46,970
Ways and Means Committee:
Current Law:
  BA...............................     728,516     728,732     792,780     855,434     906,045     955,712   1,009,838   1,064,521   1,123,340   1,164,783   1,214,151   4,238,703    9,815,336
  OT...............................     731,399     732,853     796,856     852,561     906,718     956,342   1,010,200   1,065,527   1,127,592   1,162,020   1,215,640   4,245,330    9,826,309
Discretionary Action:
  BA...............................       4,444       1,334       4,458       3,862       3,343       2,608       2,145         168      -2,219       9,076       8,323      15,605       33,098
  OT...............................       4,380         762       4,486       3,890       3,483       2,781       2,133         221      -2,205       9,087       8,327      15,402       32,965
Reauthorizations:
  BA...............................       3,417      16,889      16,889      16,889      16,889      17,788      17,808      17,829      17,851      17,873      17,897      85,344      174,602
  OT...............................       3,025      15,000      17,250      17,700      17,300      17,298      17,747      17,819      17,840      17,863      17,886      84,548      173,703
Total:
  BA...............................     736,377     746,955     814,127     876,185     926,277     976,108   1,029,791   1,082,518   1,138,972   1,191,732   1,240,371   4,339,652   10,023,036
  OT...............................     738,804     748,615     818,592     874,151     927,501     976,421   1,030,080   1,083,567   1,143,227   1,188,970   1,241,853   4,345,280   10,032,977
Medicare:
Discretionary Action (Reserve Fund):
  BA...............................  ..........       7,000          na          na          na          na          na          na          na          na          na          na      400,000
  OT...............................  ..........       7,000          na          na          na          na          na          na          na          na          na          na      400,000
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


  SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET
                                           ACT: BUDGET YEAR TOTAL 2003
                                              [Millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Direct spending        Entitlements funded in
                                                                   jurisdiction           annual appropriations
                                                           ----------------------------           acts
                         Committee                                                     -------------------------
                                                               Budget        Outlays       Budget
                                                              authority                  authority     Outlays
----------------------------------------------------------------------------------------------------------------
  Appropriations:
General purpose discretionary.............................      839,118       805,146   ...........  ...........
    Memo:
        On-budget.........................................      835,306       801,308   ...........  ...........
        Off-budget........................................        3,812         3,838   ...........  ...........
    Highways..............................................  ............       31,264   ...........  ...........
    Mass transit..........................................        1,436         6,551   ...........  ...........
    Mandatory.............................................      391,344       378,717   ...........  ...........
                                                           -----------------------------------------------------
      Total...............................................    1,231,898     1,221,678   ...........  ...........
                                                           =====================================================
Agriculture, Nutrition, and Forestry......................       19,359        14,964        52,763       40,712
Armed Services............................................       73,996        73,473           275          233
Banking, Housing and Urban Affairs........................       12,558         1,599           118           16
Commerce, Science and Transportation......................       10,590         7,255           885          814
Energy and Natural Resources..............................        2,879         2,539            48           63
Environment and Public Works..............................       30,830         2,372   ...........  ...........
Finance...................................................      759,763       763,470       286,512      286,509
Foreign Relations.........................................       13,595        11,366           183          183
Government Affairs........................................       66,931        65,426        16,564       16,564
Judiciary.................................................        6,509         6,441           534          527
Health, Education, Labor and Pensions.....................        5,328         4,805         2,814        2,801
Rules and Administration..................................           82            85           104          103
Intelligence..............................................  ............  ............          223          223
Veterans' Affairs.........................................        1,171         1,109        30,321       29,969
Indian Affairs............................................          456           444   ...........  ...........
Small Business............................................          864           769   ...........  ...........
Unassigned to Committee...................................     (371,644)     (358,647)  ...........  ...........
                                                           -----------------------------------------------------
      Total...............................................    1,865,165     1,819,148       391,344      378,717
----------------------------------------------------------------------------------------------------------------


  SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET
                                           ACT: BUDGET YEAR TOTAL 2004
                                              [Millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Direct spending        Entitlements funded in
                                                                   jurisdiction           annual appropriations
                                                           ----------------------------           acts
                         Committee                                                     -------------------------
                                                               Budget        Outlays       Budget
                                                              authority                  authority     Outlays
----------------------------------------------------------------------------------------------------------------
  Appropriations:
General purpose discretionary.............................      782,999       822,563   ...........  ...........
    Memo:
        On-budget.........................................      778,742       818,356   ...........  ...........
        Off-budget........................................        4,257         4,207   ...........  ...........
    Highways..............................................  ............       31,555   ...........  ...........
    Mass transit..........................................        1,461         6,634   ...........  ...........
    Mandatory.............................................      426,949       410,619   ...........  ...........
                                                           -----------------------------------------------------
      Total...............................................    1,211,409     1,271,371   ...........  ...........
                                                           =====================================================
Agriculture, Nutrition, and Forestry......................       20,801        16,826        55,536       39,472
Armed Services............................................       77,560        77,326           357          376
Banking, Housing and Urban Affairs........................       13,946         2,251           120           12
Commerce, Science and Transportation......................       10,908         6,518           827          843
Energy and Natural Resources..............................        2,669         2,390            64           70
Environment and Public Works..............................       35,654         2,312   ...........  ...........
Finance...................................................      757,606       760,928       315,856      315,780
Foreign Relations.........................................        9,787        11,689           179          179
Government Affairs........................................       68,533        67,000        17,362       17,362
Judiciary.................................................        7,883         7,230           511          523
Health, Education, Labor and Pensions.....................        5,232         4,439         2,888        2,872
Rules and Administration..................................           82           246           109          109
Intelligence..............................................  ............  ............          226          226
Veterans' Affairs.........................................        1,311         1,260        32,914       32,795
Indian Affairs............................................          475           472   ...........  ...........
Small Business............................................            3           (23)  ...........  ...........
Unassigned to Committee...................................     (371,280)     (355,315)  ...........  ...........
                                                           -----------------------------------------------------
      Total...............................................    1,852,579     1,876,920       426,949      410,619
----------------------------------------------------------------------------------------------------------------


  SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET
                                          ACT, 5-YEAR TOTAL: 2004-2008
                                              [Millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Direct spending         Entitlements funded in
                                                                   jurisdiction          annual appropriations
                                                           ---------------------------            acts
                         Committee                                                    --------------------------
                                                               Budget       Outlays       Budget
                                                             authority                  authority      Outlays
----------------------------------------------------------------------------------------------------------------
Agriculture...............................................      109,330       91,951       288,857      206,256
Armed Services............................................      417,330      416,461         2,992        3,047
Banking, Housing and Urban Affairs........................       71,267        7,231           626         (104)
Commerce, Science, and Transportation.....................       60,492       38,575         4,538        4,541
Energy and Natural Resources..............................       11,991       10,905           320          333
Environment and Public Works..............................      190,317       10,561   ...........  ............
Finance...................................................    4,501,491    4,510,575     1,824,189    1,823,275
Foreign Relations.........................................       59,034       55,412           876          876
Governmental Affairs......................................      372,971      365,695        93,701       93,701
Judiciary.................................................       25,585       25,756         2,629        2,640
Health, Education, Labor, and Pensions....................       32,738       29,056        15,226       15,126
Rules and Administration..................................          408          574           588          588
Intelligence..............................................  ...........  ............        1,230        1,230
Veterans' Affairs.........................................        6,561        6,382       176,815      176,196
Indian Affairs............................................        2,587        2,569   ...........  ............
Small Business............................................            6          (59)  ...........  ............
----------------------------------------------------------------------------------------------------------------


  SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET
                                          ACT, 10-YEAR TOTAL: 2004-2013
                                              [Millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Direct spending         Entitlements funded in
                                                                   jurisdiction          annual appropriations
                                                           ---------------------------            acts
                         Committee                                                    --------------------------
                                                               Budget       Outlays       Budget
                                                             authority                  authority      Outlays
----------------------------------------------------------------------------------------------------------------
Agriculture...............................................      209,130      178,892       600,618      446,118
Armed Services............................................      910,879      909,159         7,129        7,273
Banking, Housing and Urban Affairs........................      141,433        1,859         1,318         (176)
Commerce, Science, and Transportation.....................      113,446       69,687        10,252       10,232
Energy and Natural Resources..............................       22,263       20,458           640          653
Environment and Public Works..............................      393,698       19,403   ...........  ............
Finance...................................................   10,593,061   10,608,189     4,487,111    4,485,223
Foreign Relations.........................................      127,160      116,399         1,733        1,733
Governmental Affairs......................................      833,756      819,817       206,453      206,453
Judiciary.................................................       42,068       41,692         5,459        5,455
Health, Education, Labor, and Pensions....................       71,126       64,104        32,601       32,468
Rules and Administration..................................          803        1,025         1,309        1,309
Intelligence..............................................  ...........  ............        2,648        2,648
Veterans' Affairs.........................................       12,781       12,501       373,770      372,651
Indian Affairs............................................        5,805        5,765   ...........  ............
Small Business............................................            6          (76)  ...........  ............
----------------------------------------------------------------------------------------------------------------

                          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 2004-2013'' (January 2003).
      House Resolution.--CBO's economic assumptions were used.
      Senate Amendment.--CBO's economic assumptions were used.
      Conference Agreement.--CBO's economic assumptions were 
used.

                                                        ECONOMIC ASSUMPTIONS OF BUDGET RESOLUTION
                                                               [Calendar years 2003-2013]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   2003    2004    2005    2006    2007    2008    2009    2010    2011    2012    2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
Real GDP (percentage change year over year).....................    2.5     3.6     3.4     3.3     3.2     3.1     3.0     2.9     2.6     2.5     2.7
GDP Price Index (percentage change year over year)..............    1.6     1.7     2.0     2.1     2.1     2.2     2.2     2.2     2.2     2.2     2.2
Consumer Price Index (percentage change year over year).........    2.3     2.2     2.4     2.5     2.5     2.5     2.5     2.5     2.5     2.5     2.5
Unemployment Rate (percent).....................................    5.9     5.7     5.4     5.3     5.2     5.2     5.2     5.2     5.2     5.2     5.2
3-month Treasury Bill Rate (percent)............................    1.4     3.5     4.8     4.9     4.9     4.9     4.9     4.9     4.9     4.9     4.9
10-year Treasury Note Rate (percent)............................    4.4     5.2     5.7     5.8     5.8     5.8     5.8     5.8     5.8     5.8     5.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: CBO.

                              PUBLIC DEBT

      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 $7,384,000,000,000.''
      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 $6.4 trillion to $7.384 
trillion.
      Legislative jurisdiction over the public debt remains 
with the Committee on Ways and Means. The debt rule does not 
preclude that committee from originating public debt limit 
bills whenever necessary.

                            OTHER PROVISIONS

      The Senate amendment included 4 separate sections dealing 
with various reserve funds and or adjustments that have not 
been included in this Conference Agreement. These provisions 
are discussed below.
      The Agreement does not include any language with respect 
to section 211 of the Senate amendment which provided an 
adjustment for Part B grant program under the Individuals with 
Disabilities Education Act. Additional funding for this program 
is assumed within the functional levels and discretionary 
spending limits set out in the Conference Agreement.
      The Agreement also does not include any language with 
respect to section 218 of the Senate amendment which provided a 
reserve for the State grant program which is funded through the 
Land and Water conservation fund. The section 218 language was 
proposed only in conjunction with a reconciliation instruction 
to the Senate Committee on Energy and Natural Resources 
designed to facilitate exploration of the Arctic National 
Wildlife Refuge. This Conference Agreement does not include any 
such instruction, thus the reserve fund has become irrelevant.
      The Agreement does not include any language with respect 
to section 319 of the Senate amendment which purported to 
provide a reserve fund to strengthen Social Security. As 
discussed above, the language was superfluous and thus was not 
adopted by the conferees.
      The Agreement does not include any language with respect 
to section 329 of the Senate amendment which purported to 
create a $100 billion reserve for the war in Iraq and 
subsequent reconstruction. Again the language was superfluous 
and has in fact been superceded by the President's request and 
Congress' action on a FY 2003 supplemental appropriations bill 
for just this purpose.

                           SENSES OF CONGRESS

House Resolution
      The House Resolution did not include any Senses of the 
House or of Congress.
Senate Amendment
      The Senate amendment contains twenty-seven ``Sense of the 
Senate'' provisions that were adopted either during the markup 
or during consideration on the Senate floor. Two other 
provisions calling for reserve funds were also adopted and 
included in Title III of the Senate amendment. They more 
appropriately should have appeared in Title II with other 
reserve funds and adjustments. These are non-binding 
statements.
      Section 301. Sense of the Senate on Federal employee pay.
      Section 302. Sense of the Senate on Tribal colleges and 
universities.
      Section 303. Sense of the Senate regarding the 504 small 
business credit program.
      Section 304. Sense of the Senate regarding Pell Grants.
      Section 305. Sense of the Senate regarding the National 
Guard.
      Section 306. Sense of the Senate regarding weapons of 
mass destruction civil support teams.
      Section 307. Sense of the Senate on emergency and 
disaster assistance for livestock and agriculture producers.
      Section 308. Social Security restructuring.
      Section 309. Sense of the Senate concerning State fiscal 
relief.
      Section 310. Federal Agency Review Commission.
      Section 311. Sense of the Senate regarding highway 
spending.
      Section 312. Sense of the Senate concerning an expansion 
in health care coverage.
      Section 313. Sense of the Senate on the State Criminal 
Alien Assistance Program.
      Section 314. Sense of the Senate concerning programs of 
the Corps of Engineers.
      Section 315. Radio interoperability for first responders.
      Section 316. Sense of the Senate on corporate tax haven 
loopholes.
      Section 317. Sense of the Senate on phased-in concurrent 
receipt of retired pay and veterans' disability compensation 
for veterans with service-connected disabilities rated at 60 
percent or higher.
      Section 318. Sense of the Senate concerning Native 
American Health.
      Section 319. Reserve fund to strengthen social security.
      Section 320. Sense of the Senate on providing tax and 
other incentives to revitalize rural America.
      Section 321. Sense of the Senate concerning higher 
education affordability.
      Section 322. Sense of the Senate concerning children's 
graduate medical education.
      Section 323. Sense of the Senate on funding for criminal 
justice.
      Section 324. Sense of the Senate concerning funding for 
drug treatment programs.
      Section 325. Funding for after-school programs.
      Section 326. Sense of the Senate on the $1,000 child 
credit.
      Section 327. Sense of the Senate concerning funding for 
domestic nutrition assistance programs.
      Section 328. Sense of the Senate concerning free trade 
agreement with the United Kingdom.
      Section 329. Reserve fund for possible military action 
and reconstruction in Iraq.
Conference Agreement
      The Conference Agreement contains the following Senses of 
the Senate:
      Section 601. Sense of the Senate on Federal employee pay.
      Section 602. Sense of the Senate regarding Pell Grants.
      Section 603. Sense of the Senate on emergency and 
disaster assistance for livestock and agriculture producers.
      Section 604. Social Security restructuring.
      Section 605. Sense of the Senate concerning State fiscal 
relief.
      Section 606. Federal Agency Review Commission.
      Section 607. Sense of the Senate regarding highway 
spending.
      Section 608. Sense of the Senate on Reports and 
Liabilities and Future Costs.
      Section 609. Sense of the Senate concerning an expansion 
in health care coverage.
      Section 610. Sense of the Senate concerning programs of 
the Corps of Engineers.
      Section 611. Sense of the Senate concerning Native 
American Health.
      Section 612. Sense of the Senate on providing tax and 
other incentives to revitalize rural America.
      Section 613. Sense of the Senate concerning children's 
graduate medical education.
      Section 614. Sense of the Senate on funding for criminal 
justice.
      Section 615. Sense of the Senate concerning funding for 
drug treatment programs.
      Section 616. Sense of the Senate concerning free trade 
agreement with the United Kingdom.

                                   Jim Nussle,
                                   Christopher Shays,
                                 Managers on the Part of the House.

                                   Don Nickles,
                                   Pete V. Domenici,
                                   Chuck Grassley,
                                   Judd Gregg,
                                Managers on the Part of the Senate.