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Calendar No. 384
110th Congress Report
1st Session 110-184
INCREASING THE STATUTORY LIMIT ON THE PUBLIC DEBT
September 24, 2007.--Ordered to be printed
Mr. Baucus, from the Committee on Finance, submitted the following
R E P O R T
[To accompany H.J. Res. 43]
[Including cost estimate of the Congressional Budget Office]
The Committee on Finance, to which was referred the joint
resolution (H.J. Res. 43) increasing the statutory limit on the
public debt, reports favorably thereon and recommends that the
joint resolution do pass.
The statutory limit on the public debt currently is $8.965
trillion. It was set at this level in P.L. 109-182, enacted
into law on March 20, 2006. It is projected that the current
debt limit will be reached in early October 2007.
House Rule XXVIII provides that when the conference report
on the Concurrent Resolution on the Budget is adopted, the
House is deemed to have passed a joint resolution increasing
the debt limit by a specified amount. For the conference report
on the budget resolution passed this year, that amount is $850
billion. This amount would increase the debt limit to $9.815
On July 30th of this year, Treasury Secretary Henry M.
Paulson, Jr. informed the committee that the Treasury
Department projected that the statutory debt limit would be
reached in early October 2007. Secretary Paulson further wrote
that the actions that are available to the Treasury Department
to take in order to avoid breaching the statutory debt limit
would create unnecessary uncertainty for the financial markets
and result in costs to the government. The Secretary stressed
that these actions should be reserved only for extraordinary
circumstances and should be avoided.
II. EXPLANATION OF PROVISION
The proposal would concur with the joint resolution and
increase the statutory limit on the public debt by $850 billion
to $9.815 trillion.
III. REGULATORY IMPACT STATEMENT AND RELATED MATTERS
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the committee states
that the resolution will not significantly regulate any
individuals or businesses, will not affect the personal privacy
of individuals, and will result in no significant additional
The following information is provided in accordance with
section 423 of the Unfunded Mandates Reform Act of 1995 (UMRA)
(Pub. L. No. 104-04). The committee has reviewed the provisions
of H.J. Res. 43, as reported. In accordance with the
requirement of Public Law 104-04, the committee has determined
that the resolution contains no intergovernmental mandates, as
defined in the UMRA, and would not affect the budgets of state,
local, or tribal governments.
IV. BUDGET EFFECTS
In compliance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate, the following statement is made
relative to the budget effects of H.J. Res. 43, as reported.
The committee states that H.J. Res. 43 does not provide new
budgetary authority or provide an increase or decrease in
revenue or tax expenditures in the current fiscal year or in
any of the five fiscal years to follow.
In accordance with section 402 of the Congressional Budget
Act of 1974, the committee submits the following statement from
the Congressional Budget Office:
Congressional Budget Office,
Washington, DC, September 20, 2007.
Hon. Max Baucus,
Chairman, Committee on Finance,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.J. Res. 43, a joint
resolution increasing the statutory limit on the public debt.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Eric
Robert A. Sunshine
(For Peter R. Orszag, Director).
H.J. Res. 43--A joint resolution increasing the statutory limit on the
Summary: H.J. Res. 43 would increase the statutory limit on
the public debt from $8.965 trillion to $9.815 trillion. CBO
estimates that this measure, by itself, would result in no
costs or savings to the federal government because it would not
change any of the government's tax or spending policies.
H.J. Res. 43 contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act
and would have no direct impact on the budgets of state, local,
or tribal governments.
The CBO staff contact for this estimate is Eric Schatten.
This estimate was approved by Peter H. Fontaine, Assistant
Director for Budget Analysis.
V. VOTE OF THE COMMITTEE
On September 12, 2007, the joint resolution H.J. Res. 43
was ordered favorably reported by a voice vote with a quorum
present. (Note: Senator Ensign asked for the record to reflect
that he voted nay.)
No amendments were offered.
VI. CHANGES IN EXISTING LAW
Pursuant to the requirements of paragraph 12 of rule XXVI
of the Standing Rules of the Senate, changes in existing law
made by the bill, as reported, are shown as follows (existing
law proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
UNITED STATES CODE
* * * * * * *
TITLE 31--MONEY AND FINANCE
Subtitle III--Financial Management
CHAPTER 31--PUBLIC DEBT
Subchapter I--Borrowing Authority
* * * * * * *
SEC. 13101. PUBLIC DEBT LIMIT.
(a) In this section, the current redemption value of an
obligation issued on a discount basis and redeemable before
maturity at the option of its holder is deemed to be the face
amount of the obligation.
(b) The face amount of obligations issued under this
chapter and the face amount of obligations whose principal and
interest are guaranteed by the United States Government (except
guaranteed obligations held by the Secretary of the Treasury)
may not be more than [$8,965,000,000,000] $9,815,000,000,000,
outstanding at one time, subject to changes periodically made
in that amount as provided by law through the congressional
budget process described in rule XLIX of the Rules of the House
of Representatives or otherwise.
* * * * * * *