[House Report 107-55]
[From the U.S. Government Publishing Office]
107th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 107-55
======================================================================
CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2002
_______
May 3, 2001.--Ordered to be printed
_______
Mr. Nussle, from the committee on conference, submitted the following
CONFERENCE REPORT
[To accompany H. Con. Res. 83]
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. 83), establishing the congressional
budget for the United States Government for fiscal year 2002,
revising the congressional budget for the United States
Government for fiscal year 2001, and setting forth appropriate
budgetary levels for each of fiscal years 2003 through 2011,
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 2002.
(a) Declaration.--Congress determines and declares that the
concurrent resolution on the budget for fiscal year 2001 is
revised and replaced and that this resolution is the concurrent
resolution on the budget for fiscal year 2002 including the
appropriate budgetary levels for fiscal years 2003 through 2011
as authorized by section 301 of the Congressional Budget Act of
1974 (2 U.S.C. 632).
(b) Table of Contents.--The table of contents for this
concurrent resolution is as follows:
Sec. 1. Concurrent resolution on the budget for fiscal year 2002.
TITLE I--RECOMMENDED LEVELS AND AMOUNTS
Sec. 101. Recommended levels and amounts.
Sec. 102. Major functional categories.
Sec. 103. Reconciliation in the Senate.
Sec. 104. Reconciliation in the House.
TITLE II--BUDGET ENFORCEMENT AND RULEMAKING
Subtitle A--Budget Enforcement
Sec. 201. Restrictions on advance appropriations in the House.
Sec. 202. Restrictions on advance appropriations in the Senate.
Sec. 203. Mechanism for implementing increase of fiscal year 2002
discretionary spending limits.
Sec. 204. Compliance with section 13301 of the Budget Enforcement Act of
1990.
Subtitle B--Reserve Funds
Sec. 211. Reserve fund for Medicare.
Sec. 212. Reserve fund for Family Opportunity Act.
Sec. 213. Reserve fund for agriculture.
Sec. 214. Reserve fund for additional tax cuts and debt reduction.
Sec. 215. Technical reserve fund for student loans.
Sec. 216. Reserve fund for health insurance for the uninsured.
Sec. 217. Reserve fund for defense in the Senate.
Sec. 218. Strategic reserve fund in the House.
Subtitle C--Miscellaneous Provisions
Sec. 221. Application and effect of changes in allocations and
aggregates.
Sec. 222. Exercise of rulemaking powers.
TITLE III--SENSE OF THE SENATE AND CONGRESS PROVISIONS
Subtitle A--Sense of the Senate
Sec. 301. Sense of the Senate on conservation.
Sec. 302. Sense of the Senate on aids and other infectious diseases.
Sec. 303. Sense of the Senate on consolidated health centers.
Sec. 304. Funding for Department of Justice programs for State and local
law enforcement assistance.
Sec. 305. Sense of the Senate regarding United States Coast Guard fiscal
year 2002 funding.
Sec. 306. Strengthening our national food safety infrastructure.
Sec. 307. Sense of the Senate with respect to increasing funds for
renewable energy research and development.
Subtitle B--Sense of the Congress
Sec. 311. Asset building for the working poor.
Sec. 312. Federal fire prevention assistance.
Sec. 313. Funding for graduate medical education at children's teaching
hospitals.
Sec. 314. Concurrent retirement and disability benefits to retired
members of the Armed Forces.
Sec. 315. Federal employee pay.
Sec. 316. Sales tax deduction.
TITLE I--RECOMMENDED LEVELS AND AMOUNTS
SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.
The following budgetary levels are appropriate for the
fiscal years 2001 through 2011:
(1) Federal revenues.--For purposes of the enforcement of
this resolution--
(A) The recommended levels of Federal revenues are
as follows:
Fiscal year 2001: $1,630,462,000,000.
Fiscal year 2002: $1,653,202,000,000.
Fiscal year 2003: $1,706,044,000,000.
Fiscal year 2004: $1,780,310,000,000.
Fiscal year 2005: $1,852,646,000,000.
Fiscal year 2006: $1,901,304,000,000.
Fiscal year 2007: $1,994,674,000,000.
Fiscal year 2008: $2,089,726,000,000.
Fiscal year 2009: $2,193,954,000,000.
Fiscal year 2010: $2,318,055,000,000.
Fiscal year 2011: $2,436,550,000,000.
(B) The amounts by which the aggregate levels of
Federal revenues should be changed are as follows:
Fiscal year 2001: $0.
Fiscal year 2002: -$50,286,000,000.
Fiscal year 2003: -$76,067,000,000.
Fiscal year 2004: -$84,025,000,000.
Fiscal year 2005: -$97,124,000,000.
Fiscal year 2006: -$138,279,000,000.
Fiscal year 2007: -$141,081,000,000.
Fiscal year 2008: -$153,084,000,000.
Fiscal year 2009: -$166,162,000,000.
Fiscal year 2010: -$171,247,000,000.
Fiscal year 2011: -$191,343,000,000.
(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 2001: $1,653,681,000,000.
Fiscal year 2002: $1,525,948,000,000.
Fiscal year 2003: $1,668,530,000,000.
Fiscal year 2004: $1,733,617,000,000.
Fiscal year 2005: $1,814,079,000,000.
Fiscal year 2006: $1,866,139,000,000.
Fiscal year 2007: $1,945,112,000,000.
Fiscal year 2008: $2,025,075,000,000.
Fiscal year 2009: $2,102,398,000,000.
Fiscal year 2010: $2,186,341,000,000.
Fiscal year 2011: $2,277,143,000,000.
(3) Budget outlays.--For purposes of the enforcement of
this resolution, the appropriate levels of total budget outlays
are as follows:
Fiscal year 2001: $1,600,529,000,000.
Fiscal year 2002: $1,491,841,000,000.
Fiscal year 2003: $1,641,515,000,000.
Fiscal year 2004: $1,709,251,000,000.
Fiscal year 2005: $1,790,389,000,000.
Fiscal year 2006: $1,837,846,000,000.
Fiscal year 2007: $1,912,602,000,000.
Fiscal year 2008: $1,994,838,000,000.
Fiscal year 2009: $2,071,497,000,000.
Fiscal year 2010: $2,154,203,000,000.
Fiscal year 2011: $2,243,394,000,000.
(4) Surpluses.--For purposes of the enforcement of this
resolution, the amounts of the surpluses are as follows:
Fiscal year 2001: $29,933,000,000.
Fiscal year 2002: $161,361,000,000.
Fiscal year 2003: $64,529,000,000.
Fiscal year 2004: $71,059,000,000.
Fiscal year 2005: $62,257,000,000.
Fiscal year 2006: $63,458,000,000.
Fiscal year 2007: $82,072,000,000.
Fiscal year 2008: $94,888,000,000.
Fiscal year 2009: $122,457,000,000.
Fiscal year 2010: $163,852,000,000.
Fiscal year 2011: $193,156,000,000.
(5) Public debt.--The appropriate levels of the public debt
are as follows:
Fiscal year 2001: $5,660,699,000,000.
Fiscal year 2002: $5,603,812,000,000.
Fiscal year 2003: $5,654,952,000,000.
Fiscal year 2004: $5,700,089,000,000.
Fiscal year 2005: $5,751,561,000,000.
Fiscal year 2006: $5,803,295,000,000.
Fiscal year 2007: $5,832,676,000,000.
Fiscal year 2008: $5,847,714,000,000.
Fiscal year 2009: $5,988,315,000,000.
Fiscal year 2010: $6,343,661,000,000.
Fiscal year 2011: $6,720,963,000,000.
(6) Debt held by the public.--The appropriate levels of the
debt held by the public are as follows:
Fiscal year 2001: $3,243,211,000,000.
Fiscal year 2002: $2,924,234,000,000.
Fiscal year 2003: $2,691,176,000,000.
Fiscal year 2004: $2,437,771,000,000.
Fiscal year 2005: $2,170,550,000,000.
Fiscal year 2006: $1,882,764,000,000.
Fiscal year 2007: $1,555,637,000,000.
Fiscal year 2008: $1,194,633,000,000.
Fiscal year 2009: $939,000,000,000.
Fiscal year 2010: $878,000,000,000.
Fiscal year 2011: $818,000,000,000.
(7) Social security.--
(A) Social security revenues.--For purposes of
Senate enforcement under section 311 of the
Congressional Budget Act of 1974 (2 U.S.C. 642), 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 2001: $504,109,000,000.
Fiscal year 2002: $532,308,000,000.
Fiscal year 2003: $560,938,000,000.
Fiscal year 2004: $588,674,000,000.
Fiscal year 2005: $620,060,000,000.
Fiscal year 2006: $649,221,000,000.
Fiscal year 2007: $679,935,000,000.
Fiscal year 2008: $712,454,000,000.
Fiscal year 2009: $746,439,000,000.
Fiscal year 2010: $782,029,000,000.
Fiscal year 2011: $819,185,000,000.
(B) Social security outlays.--For purposes of
Senate enforcement under section 311 of the
Congressional Budget Act of 1974 (2 U.S.C. 642), 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 2001: $343,562,000,000.
Fiscal year 2002: $356,646,000,000.
Fiscal year 2003: $369,521,000,000.
Fiscal year 2004: $382,488,000,000.
Fiscal year 2005: $394,844,000,000.
Fiscal year 2006: $407,020,000,000.
Fiscal year 2007: $419,285,000,000.
Fiscal year 2008: $432,293,000,000.
Fiscal year 2009: $448,317,000,000.
Fiscal year 2010: $465,780,000,000.
Fiscal year 2011: $483,963,000,000.
(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 2001:
(A) New budget authority,
$3,431,000,000.
(B) Outlays, $3,371,000,000.
Fiscal year 2002:
(A) New budget authority,
$3,579,000,000.
(B) Outlays, $3,525,000,000.
Fiscal year 2003:
(A) New budget authority,
$3,695,000,000.
(B) Outlays, $3,655,000,000.
Fiscal year 2004:
(A) New budget authority,
$3,819,000,000.
(B) Outlays, $3,763,000,000.
Fiscal year 2005:
(A) New budget authority,
$3,939,000,000.
(B) Outlays, $3,881,000,000.
Fiscal year 2006:
(A) New budget authority,
$4,064,000,000.
(B) Outlays, $4,004,000,000.
Fiscal year 2007:
(A) New budget authority,
$4,194,000,000.
(B) Outlays, $4,132,000,000.
Fiscal year 2008:
(A) New budget authority,
$4,331,000,000.
(B) Outlays, $4,267,000,000.
Fiscal year 2009:
(A) New budget authority,
$4,471,000,000.
(B) Outlays, $4,405,000,000.
Fiscal year 2010:
(A) New budget authority,
$4,619,000,000.
(B) Outlays, $4,551,000,000.
Fiscal year 2011:
(A) New budget authority,
$4,773,000,000.
(B) Outlays, $4,702,000,000.
SEC. 102. MAJOR FUNCTIONAL CATEGORIES.
Congress determines and declares that the appropriate
levels of new budget authority, budget outlays, new direct loan
obligations, and new primary loan guarantee commitments for
fiscal years 2002 through 2011 for each major functional
category are:
(1) National Defense (050):
Fiscal year 2001:
(A) New budget authority, $316,873,000,000.
(B) Outlays, $302,371,000,000.
Fiscal year 2002:
(A) New budget authority, $324,832,000,000.
(B) Outlays, $319,137,000,000.
Fiscal year 2003:
(A) New budget authority, $333,646,000,000.
(B) Outlays, $326,643,000,000.
Fiscal year 2004:
(A) New budget authority, $342,294,000,000.
(B) Outlays, $335,184,000,000.
Fiscal year 2005:
(A) New budget authority, $350,876,000,000.
(B) Outlays, $347,073,000,000.
Fiscal year 2006:
(A) New budget authority, $359,807,000,000.
(B) Outlays, $353,482,000,000.
Fiscal year 2007:
(A) New budget authority, $369,023,000,000.
(B) Outlays, $359,774,000,000.
Fiscal year 2008:
(A) New budget authority, $378,505,000,000.
(B) Outlays, $372,416,000,000.
Fiscal year 2009:
(A) New budget authority, $388,323,000,000.
(B) Outlays, $382,242,000,000.
Fiscal year 2010:
(A) New budget authority, $398,338,000,000.
(B) Outlays, $392,227,000,000.
Fiscal year 2011:
(A) New budget authority, $408,821,000,000.
(B) Outlays, $402,579,000,000.
(2) International Affairs (150):
Fiscal year 2001:
(A) New budget authority, $22,424,000,000.
(B) Outlays, $19,670,000,000.
Fiscal year 2002:
(A) New budget authority, $23,214,000,000.
(B) Outlays, $19,082,000,000.
Fiscal year 2003:
(A) New budget authority, $23,750,000,000.
(B) Outlays, $19,554,000,000.
Fiscal year 2004:
(A) New budget authority, $24,214,000,000.
(B) Outlays, $20,164,000,000.
Fiscal year 2005:
(A) New budget authority, $24,911,000,000.
(B) Outlays, $20,431,000,000.
Fiscal year 2006:
(A) New budget authority, $25,504,000,000.
(B) Outlays, $20,900,000,000.
Fiscal year 2007:
(A) New budget authority, $26,107,000,000.
(B) Outlays, $21,494,000,000.
Fiscal year 2008:
(A) New budget authority, $26,482,000,000.
(B) Outlays, $22,031,000,000.
Fiscal year 2009:
(A) New budget authority, $26,937,000,000.
(B) Outlays, $22,650,000,000.
Fiscal year 2010:
(A) New budget authority, $27,458,000,000.
(B) Outlays, $23,235,000,000.
Fiscal year 2011:
(A) New budget authority, $28,065,000,000.
(B) Outlays, $23,766,000,000.
(3) General Science, Space, and Technology (250):
Fiscal year 2001:
(A) New budget authority, $21,043,000,000.
(B) Outlays, $19,612,000,000.
Fiscal year 2002:
(A) New budget authority, $21,583,000,000.
(B) Outlays, $20,725,000,000.
Fiscal year 2003:
(A) New budget authority, $22,055,000,000.
(B) Outlays, $21,361,000,000.
Fiscal year 2004:
(A) New budget authority, $22,379,000,000.
(B) Outlays, $21,945,000,000.
Fiscal year 2005:
(A) New budget authority, $22,839,000,000.
(B) Outlays, $22,429,000,000.
Fiscal year 2006:
(A) New budget authority, $23,323,000,000.
(B) Outlays, $22,847,000,000.
Fiscal year 2007:
(A) New budget authority, $23,812,000,000.
(B) Outlays, $23,280,000,000.
Fiscal year 2008:
(A) New budget authority, $24,303,000,000.
(B) Outlays, $23,743,000,000.
Fiscal year 2009:
(A) New budget authority, $24,816,000,000.
(B) Outlays, $24,239,000,000.
Fiscal year 2010:
(A) New budget authority, $25,335,000,000.
(B) Outlays, $24,749,000,000.
Fiscal year 2011:
(A) New budget authority, $25,879,000,000
(B) Outlays, $25,274,000,000.
(4) Energy (270):
Fiscal year 2001:
(A) New budget authority, $1,225,000,000.
(B) Outlays, -$115,000,000.
Fiscal year 2002:
(A) New budget authority, $1,360,000,000.
(B) Outlays, -$19,000,000.
Fiscal year 2003:
(A) New budget authority, $1,328,000,000.
(B) Outlays, -$72,000,000.
Fiscal year 2004:
(A) New budget authority, $1,309,000,000.
(B) Outlays, -$120,000,000.
Fiscal year 2005:
(A) New budget authority, $1,254,000,000.
(B) Outlays, -$91,000,000.
Fiscal year 2006:
(A) New budget authority, $1,336,000,000.
(B) Outlays, -$3,000,000.
Fiscal year 2007:
(A) New budget authority, $1,411,000,000.
(B) Outlays, $71,000,000.
Fiscal year 2008:
(A) New budget authority, $1,882,000,000.
(B) Outlays, $440,000,000.
Fiscal year 2009:
(A) New budget authority, $1,998,000,000.
(B) Outlays, $579,000,000.
Fiscal year 2010:
(A) New budget authority, $2,021,000,000.
(B) Outlays, $703,000,000.
Fiscal year 2011:
(A) New budget authority, $1,990,000,000.
(B) Outlays, $691,000,000.
(5) Natural Resources and Environment (300):
Fiscal year 2001:
(A) New budget authority, $28,833,000,000.
(B) Outlays, $26,361,000,000.
Fiscal year 2002:
(A) New budget authority, $30,381,000,000.
(B) Outlays, $28,652,000,000.
Fiscal year 2003:
(A) New budget authority, $31,263,000,000.
(B) Outlays, $30,368,000,000.
Fiscal year 2004:
(A) New budget authority, $32,249,000,000.
(B) Outlays, $31,506,000,000.
Fiscal year 2005:
(A) New budget authority, $33,091,000,000.
(B) Outlays, $32,365,000,000.
Fiscal year 2006:
(A) New budget authority, $33,965,000,000.
(B) Outlays, $33,281,000,000.
Fiscal year 2007:
(A) New budget authority, $34,767,000,000.
(B) Outlays, $34,126,000,000.
Fiscal year 2008:
(A) New budget authority, $35,691,000,000.
(B) Outlays, $34,903,000,000.
Fiscal year 2009:
(A) New budget authority, $37,064,000,000.
(B) Outlays, $36,194,000,000.
Fiscal year 2010:
(A) New budget authority, $38,111,000,000.
(B) Outlays, $37,190,000,000.
Fiscal year 2011:
(A) New budget authority, $39,137,000,000.
(B) Outlays, $38,190,000,000.
(6) Agriculture (350):
Fiscal year 2001:
(A) New budget authority, $31,790,000,000.
(B) Outlays, $29,154,000,000.
Fiscal year 2002:
(A) New budget authority, $26,265,000,000.
(B) Outlays, $24,593,000,000.
Fiscal year 2003:
(A) New budget authority, $26,507,000,000.
(B) Outlays, $24,924,000,000.
Fiscal year 2004:
(A) New budget authority, $26,562,000,000.
(B) Outlays, $25,120,000,000.
Fiscal year 2005:
(A) New budget authority, $26,406,000,000.
(B) Outlays, $24,915,000,000.
Fiscal year 2006:
(A) New budget authority, $25,452,000,000.
(B) Outlays, $23,853,000,000.
Fiscal year 2007:
(A) New budget authority, $24,083,000,000.
(B) Outlays, $22,509,000,000.
Fiscal year 2008:
(A) New budget authority, $22,723,000,000.
(B) Outlays, $21,134,000,000.
Fiscal year 2009:
(A) New budget authority, $21,921,000,000.
(B) Outlays, $20,441,000,000.
Fiscal year 2010:
(A) New budget authority, $21,553,000,000.
(B) Outlays, $20,174,000,000.
Fiscal year 2011:
(A) New budget authority, $21,703,000,000.
(B) Outlays, $20,319,000,000.
(7) Commerce and Housing Credit (370):
Fiscal year 2001:
(A) New budget authority, $2,516,000,000.
(B) Outlays, -$771,000,000.
Fiscal year 2002:
(A) New budget authority, $10,174,000,000.
(B) Outlays, $6,587,000,000.
Fiscal year 2003:
(A) New budget authority, $11,394,000,000.
(B) Outlays, $5,952,000,000.
Fiscal year 2004:
(A) New budget authority, $16,042,000,000.
(B) Outlays, $11,733,000,000.
Fiscal year 2005:
(A) New budget authority, $16,163,000,000.
(B) Outlays, $12,387,000,000.
Fiscal year 2006:
(A) New budget authority, $16,138,000,000.
(B) Outlays, $11,790,000,000.
Fiscal year 2007:
(A) New budget authority, $16,245,000,000.
(B) Outlays, $12,061,000,000.
Fiscal year 2008:
(A) New budget authority, $16,404,000,000.
(B) Outlays, $11,894,000,000.
Fiscal year 2009:
(A) New budget authority, $16,479,000,000.
(B) Outlays, $11,934,000,000.
Fiscal year 2010:
(A) New budget authority, $16,597,000,000.
(B) Outlays, $11,889,000,000.
Fiscal year 2011:
(A) New budget authority, $16,714,000,000.
(B) Outlays, $11,915,000,000.
(8) Transportation (400):
Fiscal year 2001:
(A) New budget authority, $62,130,000,000.
(B) Outlays, $51,681,000,000.
Fiscal year 2002:
(A) New budget authority, $64,965,000,000.
(B) Outlays, $56,167,000,000.
Fiscal year 2003:
(A) New budget authority, $62,392,000,000.
(B) Outlays, $60,521,000,000.
Fiscal year 2004:
(A) New budget authority, $64,154,000,000.
(B) Outlays, $62,662,000,000.
Fiscal year 2005:
(A) New budget authority, $65,907,000,000.
(B) Outlays, $64,225,000,000.
Fiscal year 2006:
(A) New budget authority, $67,794,000,000.
(B) Outlays, $65,702,000,000.
Fiscal year 2007:
(A) New budget authority, $69,637,000,000.
(B) Outlays, $66,577,000,000.
Fiscal year 2008:
(A) New budget authority, $71,490,000,000.
(B) Outlays, $67,775,000,000.
Fiscal year 2009:
(A) New budget authority, $73,377,000,000.
(B) Outlays, $69,221,000,000.
Fiscal year 2010:
(A) New budget authority, $76,412,000,000.
(B) Outlays, $70,588,000,000.
Fiscal year 2011:
(A) New budget authority, $78,652,000,000.
(B) Outlays, $72,183,000,000.
(9) Community and Regional Development (450):
Fiscal year 2001:
(A) New budget authority, $11,225,000,000.
(B) Outlays, $11,366,000,000.
Fiscal year 2002:
(A) New budget authority, $11,892,000,000.
(B) Outlays, $11,730,000,000.
Fiscal year 2003:
(A) New budget authority, $12,067,000,000.
(B) Outlays, $11,731,000,000.
Fiscal year 2004:
(A) New budget authority, $12,350,000,000.
(B) Outlays, $11,967,000,000.
Fiscal year 2005:
(A) New budget authority, $12,664,000,000.
(B) Outlays, $11,913,000,000.
Fiscal year 2006:
(A) New budget authority, $12,933,000,000.
(B) Outlays, $11,936,000,000.
Fiscal year 2007:
(A) New budget authority, $13,198,000,000.
(B) Outlays, $12,181,000,000.
Fiscal year 2008:
(A) New budget authority, $13,476,000,000.
(B) Outlays, $12,444,000,000.
Fiscal year 2009:
(A) New budget authority, $13,759,000,000.
(B) Outlays, $12,696,000,000.
Fiscal year 2010:
(A) New budget authority, $14,048,000,000.
(B) Outlays, $12,962,000,000.
Fiscal year 2011:
(A) New budget authority, $14,340,000,000.
(B) Outlays, $13,233,000,000.
(10) Education, Training, Employment, and Social Services
(500):
Fiscal year 2001:
(A) New budget authority, $76,951,000,000.
(B) Outlays, $69,850,000,000.
Fiscal year 2002:
(A) New budget authority, $81,234,000,000.
(B) Outlays, $76,742,000,000.
Fiscal year 2003:
(A) New budget authority, $82,805,000,000.
(B) Outlays, $81,479,000,000.
Fiscal year 2004:
(A) New budget authority, $84,386,000,000.
(B) Outlays, $83,574,000,000.
Fiscal year 2005:
(A) New budget authority, $87,122,000.000.
(B) Outlays, $85,819,000,000.
Fiscal year 2006:
(A) New budget authority, $89,233,000,000.
(B) Outlays, $87,924,000,000.
Fiscal year 2007:
(A) New budget authority, $91,327,000,000.
(B) Outlays, $89,955,000,000.
Fiscal year 2008:
(A) New budget authority, $93,501,000,000.
(B) Outlays, $92,115,000,000.
Fiscal year 2009:
(A) New budget authority, $95,780,000,000.
(B) Outlays, $94,341,000,000.
Fiscal year 2010:
(A) New budget authority, $98,113,000,000.
(B) Outlays, $96,654,000,000.
Fiscal year 2011:
(A) New budget authority, $100,517,000,000.
(B) Outlays, $99,017,000,000.
(11) Health (550):
Fiscal year 2001:
(A) New budget authority, $180,104,000,000.
(B) Outlays, $173,012,000,000.
Fiscal year 2002:
(A) New budget authority, $198,775,000,000.
(B) Outlays, $196,668,000,000.
Fiscal year 2003:
(A) New budget authority, $221,150,000,000.
(B) Outlays, $219,770,000,000.
Fiscal year 2004:
(A) New budget authority, $235,474,000,000.
(B) Outlays, $234,672,000,000.
Fiscal year 2005:
(A) New budget authority, $242,661,000,000.
(B) Outlays, $241,084,000,000.
Fiscal year 2006:
(A) New budget authority, $259,125,000,000.
(B) Outlays, $257,594,000,000.
Fiscal year 2007:
(A) New budget authority, $278,882,000,000.
(B) Outlays, $276,575,000,000.
Fiscal year 2008:
(A) New budget authority, $299,116,000,000.
(B) Outlays, $297,091,000,000.
Fiscal year 2009:
(A) New budget authority, $320,791,000,000.
(B) Outlays, $319,017,000,000.
Fiscal year 2010:
(A) New budget authority, $345,380,000,000.
(B) Outlays, $343,729,000,000.
Fiscal year 2011:
(A) New budget authority, $372,407,000,000.
(B) Outlays, $370,945,000,000.
(12) Medicare (570):
Fiscal year 2001:
(A) New budget authority, $217,531,000,000.
(B) Outlays, $217,708,000,000.
Fiscal year 2002:
(A) New budget authority, $229,179,000,000.
(B) Outlays, $229,121,000,000.
Fiscal year 2003:
(A) New budget authority, $244,838,000,000.
(B) Outlays, $244,596,000,000.
Fiscal year 2004:
(A) New budget authority, $271,378,000,000.
(B) Outlays, $271,579,000,000.
Fiscal year 2005:
(A) New budget authority, $306,158,000,000.
(B) Outlays, $306,079,000,000.
Fiscal year 2006:
(A) New budget authority, $326,564,000,000.
(B) Outlays, $326,298,000,000.
Fiscal year 2007:
(A) New budget authority, $363,686,000,000.
(B) Outlays, $363,901,000,000.
Fiscal year 2008:
(A) New budget authority, $393,686,000,000.
(B) Outlays, $393,578,000,000.
Fiscal year 2009:
(A) New budget authority, $424,278,000,000.
(B) Outlays, $423,993,000,000.
Fiscal year 2010:
(A) New budget authority, $458,957,000,000.
(B) Outlays, $459,194,000,000.
Fiscal year 2011:
(A) New budget authority, $497,379,000,000.
(B) Outlays, $497,366,000,000.
(13) Income Security (600):
Fiscal year 2001:
(A) New budget authority, $255,942,000,000.
(B) Outlays, $256,932,000,000.
Fiscal year 2002:
(A) New budget authority, $273,840,000,000.
(B) Outlays, $272,122,000,000.
Fiscal year 2003:
(A) New budget authority, $283,864,000,000.
(B) Outlays, $282,611,000,000.
Fiscal year 2004:
(A) New budget authority, $295,030,000,000.
(B) Outlays, $293,420,000,000.
Fiscal year 2005:
(A) New budget authority, $309,192,000,000.
(B) Outlays, $307,667,000,000.
Fiscal year 2006:
(A) New budget authority, $316,761,000,000.
(B) Outlays, $315,312,000,000.
Fiscal year 2007:
(A) New budget authority, $324,056,000,000.
(B) Outlays, $322,627,000,000.
Fiscal year 2008:
(A) New budget authority, $338,278,000,000.
(B) Outlays, $336,950,000,000.
Fiscal year 2009:
(A) New budget authority, $349,561,000,000.
(B) Outlays, $347,987,000,000.
Fiscal year 2010:
(A) New budget authority, $360,308,000,000.
(B) Outlays, $358,600,000,000.
Fiscal year 2011:
(A) New budget authority, $371,593,000,000.
(B) Outlays, $369,419,000,000.
(14) Social Security (650):
Fiscal year 2001:
(A) New budget authority, $9,805,000,000.
(B) Outlays, $9,805,000,000.
Fiscal year 2002:
(A) New budget authority, $11,004,000,000.
(B) Outlays, $11,003,000,000.
Fiscal year 2003:
(A) New budget authority, $11,733,000,000.
(B) Outlays, $11,733,000,000.
Fiscal year 2004:
(A) New budget authority, $12,496,000,000.
(B) Outlays, $12,496,000,000.
Fiscal year 2005:
(A) New budget authority, $13,308,000,000.
(B) Outlays, $13,308,000,000.
Fiscal year 2006:
(A) New budget authority, $14,207,000,000.
(B) Outlays, $14,207,000,000.
Fiscal year 2007:
(A) New budget authority, $15,168,000,000.
(B) Outlays, $15,168,000,000.
Fiscal year 2008:
(A) New budget authority, $16,241,000,000.
(B) Outlays, $16,241,000,000.
Fiscal year 2009:
(A) New budget authority, $17,483,000,000.
(B) Outlays, $17,483,000,000.
Fiscal year 2010:
(A) New budget authority, $18,878,000,000.
(B) Outlays, $18,878,000,000.
Fiscal year 2011:
(A) New budget authority, $20,388,000,000.
(B) Outlays, $20,388,000,000.
(15) Veterans Benefits and Services (700):
Fiscal year 2001:
(A) New budget authority, $46,675,000,000.
(B) Outlays, $45,926,000,000.
Fiscal year 2002:
(A) New budget authority, $51,512,000,000.
(B) Outlays, $50,921,000,000.
Fiscal year 2003:
(A) New budget authority, $53,801,000,000.
(B) Outlays, $53,408,000,000.
Fiscal year 2004:
(A) New budget authority, $56,161,000,000.
(B) Outlays, $55,744,000,000.
Fiscal year 2005:
(A) New budget authority, $60,317,000,000.
(B) Outlays, $59,847,000,000.
Fiscal year 2006:
(A) New budget authority, $59,863,000,000.
(B) Outlays, $59,368,000,000.
Fiscal year 2007:
(A) New budget authority, $59,345,000,000.
(B) Outlays, $58,853,000,000.
Fiscal year 2008:
(A) New budget authority, $63,407,000,000.
(B) Outlays, $62,971,000,000.
Fiscal year 2009:
(A) New budget authority, $64,981,000,000.
(B) Outlays, $64,570,000,000.
Fiscal year 2010:
(A) New budget authority, $66,973,000,000.
(B) Outlays, $66,555,000,000.
Fiscal year 2011:
(A) New budget authority, $69,063,000,000.
(B) Outlays, $68,632,000,000.
(16) Administration of Justice (750):
Fiscal year 2001:
(A) New budget authority, $30,577,000,000.
(B) Outlays, $30,003,000,000.
Fiscal year 2002:
(A) New budget authority, $32,431,000,000.
(B) Outlays, $31,436,000,000.
Fiscal year 2003:
(A) New budget authority, $32,545,000,000.
(B) Outlays, $32,809,000,000.
Fiscal year 2004:
(A) New budget authority, $35,330,000,000.
(B) Outlays, $35,543,000,000.
Fiscal year 2005:
(A) New budget authority, $36,420,000,000.
(B) Outlays, $36,347,000,000.
Fiscal year 2006:
(A) New budget authority, $37,466,000,000.
(B) Outlays, $37,036,000,000.
Fiscal year 2007:
(A) New budget authority, $38,543,000,000.
(B) Outlays, $38,013,000,000.
Fiscal year 2008:
(A) New budget authority, $39,665,000,000.
(B) Outlays, $39,152,000,000.
Fiscal year 2009:
(A) New budget authority, $40,822,000,000.
(B) Outlays, $40,292,000,000.
Fiscal year 2010:
(A) New budget authority, $42,021,000,000.
(B) Outlays, $41,483,000,000.
Fiscal year 2011:
(A) New budget authority, $43,284,000,000.
(B) Outlays, $42,728,000,000.
(17) General Government (800):
Fiscal year 2001:
(A) New budget authority, $16,307,000,000.
(B) Outlays, $16,065,000,000.
Fiscal year 2002:
(A) New budget authority, $16,496,000,000.
(B) Outlays, $16,193,000,000.
Fiscal year 2003:
(A) New budget authority, $16,651,000,000.
(B) Outlays, $16,493,000,000.
Fiscal year 2004:
(A) New budget authority, $17,082,000,000.
(B) Outlays, $16,978,000,000.
Fiscal year 2005:
(A) New budget authority, $17,560,000,000.
(B) Outlays, $17,201,000,000.
Fiscal year 2006:
(A) New budget authority, $18,068,000,000.
(B) Outlays, $17,641,000,000.
Fiscal year 2007:
(A) New budget authority, $18,609,000,000.
(B) Outlays, $18,144,000,000.
Fiscal year 2008:
(A) New budget authority, $18,791,000,000.
(B) Outlays, $18,445,000,000.
Fiscal year 2009:
(A) New budget authority, $19,377,000,000.
(B) Outlays, $18,882,000,000.
Fiscal year 2010:
(A) New budget authority, $19,968,000,000.
(B) Outlays, $19,437,000,000.
Fiscal year 2011:
(A) New budget authority, $20,599,000,000.
(B) Outlays, $20,048,000,000.
(18) Net Interest (900):
Fiscal year 2001:
(A) New budget authority, $275,467,000,000.
(B) Outlays, $275,467,000,000.
Fiscal year 2002:
(A) New budget authority, $259,162,000,000.
(B) Outlays, $259,162,000,000.
Fiscal year 2003:
(A) New budget authority, $252,364,000,000.
(B) Outlays, $252,364,000,000.
Fiscal year 2004:
(A) New budget authority, $247,310,000,000.
(B) Outlays, $247,310,000,000.
Fiscal year 2005:
(A) New budget authority, $240,115,000,000.
(B) Outlays, $240,115,000,000.
Fiscal year 2006:
(A) New budget authority, $235,642,000,000.
(B) Outlays, $235,642,000,000.
Fiscal year 2007:
(A) New budget authority, $232,136,000,000.
(B) Outlays, $232,136,000,000.
Fiscal year 2008:
(A) New budget authority, $227,484,000,000.
(B) Outlays, $227,484,000,000.
Fiscal year 2009:
(A) New budget authority, $221,933,000,000.
(B) Outlays, $221,933,000,000.
Fiscal year 2010:
(A) New budget authority, $214,899,000,000.
(B) Outlays, $214,899,000,000.
Fiscal year 2011:
(A) New budget authority, $207,328,000,000.
(B) Outlays, $207,328,000,000.
(19) Allowances (920):
Fiscal year 2001:
(A) New budget authority, $84,528,000,000.
(B) Outlays, $84,697,000,000.
Fiscal year 2002:
(A) New budget authority,
-$103,548,000,000.
(B) Outlays, -$99,379,000,000.
Fiscal year 2003:
(A) New budget authority, -$6,115,000,000.
(B) Outlays, -$5,222,000,000.
Fiscal year 2004:
(A) New budget authority, -$6,268,000,000.
(B) Outlays, -$5,912,000,000.
Fiscal year 2005:
(A) New budget authority, -$6,423,000,000.
(B) Outlays, -$6,263,000,000.
Fiscal year 2006:
(A) New budget authority, -$6,580,000,000.
(B) Outlays, -$6,503,000,000.
Fiscal year 2007:
(A) New budget authority, -$6,744,000,000.
(B) Outlays, -$6,665,000,000.
Fiscal year 2008:
(A) New budget authority, -$6,908,000,000.
(B) Outlays, -$6,828,000,000.
Fiscal year 2009:
(A) New budget authority, -$7,079,000,000.
(B) Outlays, -$6,994,000,000.
Fiscal year 2010:
(A) New budget authority, -$7,251,000,000.
(B) Outlays, -$7,165,000,000.
Fiscal year 2011:
(A) New budget authority, -$7,429,000,000.
(B) Outlays, -$7,340,000,000.
(20) Undistributed Offsetting Receipts (950):
Fiscal year 2001:
(A) New budget authority, -$38,265,000,000.
(B) Outlays, -$38,265,000,000.
Fiscal year 2002:
(A) New budget authority, -$38,803,000,000.
(B) Outlays, -$38,803,000,000.
Fiscal year 2003:
(A) New budget authority, -$49,508,000,000.
(B) Outlays, -$49,508,000,000.
Fiscal year 2004:
(A) New budget authority, -$56,315,000,000.
(B) Outlays, -$56,315,000,000.
Fiscal year 2005:
(A) New budget authority, -$46,463,000,000.
(B) Outlays, -$46,463,000,000.
Fiscal year 2006:
(A) New budget authority, -$50,461,000,000.
(B) Outlays, -$50,461,000,000.
Fiscal year 2007:
(A) New budget authority, -$48,179,000,000.
(B) Outlays, -$48,179,000,000.
Fiscal year 2008:
(A) New budget authority, -$49,141,000,000.
(B) Outlays, -$49,141,000,000.
Fiscal year 2009:
(A) New budget authority, -$50,203,000,000.
(B) Outlays, -$50,203,000,000.
Fiscal year 2010:
(A) New budget authority, -$51,778,000,000.
(B) Outlays, -$51,778,000,000.
Fiscal year 2011:
(A) New budget authority, -$53,287,000,000.
(B) Outlays, -$53,287,000,000.
SEC. 103. RECONCILIATION IN THE SENATE.
(a) In General.--Subject to subsection (b), the Committee
on Finance of the Senate shall report to the Senate a
reconciliation bill not later than May 18, 2001 that consists
of changes in laws within its jurisdiction sufficient to reduce
revenues by not more than $1,250,000,000,000 for the period of
years 2001 through 2011 and the total level of outlays may be
increased by not more than $100,000,000,000 for the period of
fiscal years 2001 through 2011.
(b) Surplus.--Legislation described in subsection (a) may
not, when taken together with all other previously-enacted
legislation (except for legislation enacted pursuant to section
211), reduce the on-budget surplus below the level of the
Medicare Hospital Insurance Trust Fund surplus in any fiscal
year covered by this resolution.
(c) Sense of Congress.--It is the sense of the Congress
that of the total amount reconciled in subsection (a),
$100,000,000,000 will be for an economic stimulus package over
the next 2 years.
SEC. 104. RECONCILIATION IN THE HOUSE.
(a) In General.--Subject to subsection (b), the Committee
on Ways and Means of the House of Representatives shall report
to the House of Representatives a reconciliation bill not later
than May 18, 2001 that consists of changes in laws within its
jurisdiction sufficient * * * reported bill or joint
resolution, or amendment thereto or conference report thereon,
that would provide an advance appropriation.
(b) Exception.--An advance appropriation may be provided--
(1) for fiscal year 2003 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 $23,159,000,000 in new budget authority; and
(2) for the Corporation for Public Broadcasting.
(c) Application of Point of Order in the Senate.--
(1) Waiver and appeal.--In the Senate, subsection
(a) 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 in the Senate to sustain an appeal of
the ruling of the Chair on a point of order raised
under subsection (a).
(2) Form of the point of order.--A point of order
under subsection (a) may be raised by a Senator as
provided in section 313(e) of the Congressional Budget
Act of 1974.
(3) Conference reports.--If a point of order is
sustained under subsection (a) 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.
(d) Definition.--In this section, 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 2002 that first
becomes available for any fiscal year after 2002.
(e) Sense of Congress.--It is the sense of Congress that
the Budget Enforcement Act of 1990 should be amended to address
procedures for advance appropriations for fiscal years
beginning with fiscal year 2003.
SEC. 203. MECHANISM FOR IMPLEMENTING INCREASE OF FISCAL YEAR 2002
DISCRETIONARY SPENDING LIMITS.
(a) Findings.--The Senate finds the following:
(1) Unless and until the discretionary spending
limit for fiscal year 2002 (as set out in section
251(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985) is increased, aggregate
appropriations which exceed the current law limits
would still be out of order in the Senate and subject
to a supermajority vote.
(2) Except for a necessary adjustment included in
function 920 (to comply with section 312(b) of the
Congressional Budget Act of 1974), the functional
totals contained in this concurrent resolution envision
a level of discretionary spending for fiscal year 2002
as follows:
(A) For the discretionary category:
$659,540,000,000 in new budget authority and
$647,780,000,000 in outlays.
(B) For the highway category:
$28,489,000,000 in outlays.
(C) For the mass transit category:
$5,275,000,000 in outlays.
(D) For the conservation category:
$1,760,000,000 in new budget authority and
$1,232,000,000 in outlays.
(3) To facilitate the Senate completing its
legislative responsibilities for the 1st Session of the
107th Congress in a timely fashion, it is imperative
that the Senate consider legislation which establishes
appropriate discretionary spending limits for fiscal
year 2002 through 2006 as soon as possible.
(b) Adjustment to Allocations and Other Budgetary
Aggregates and Levels.--Whenever a bill or joint resolution
becomes law that increases the discretionary spending limit for
fiscal year 2002 set out in section 251(c) of the Balanced
Budget and Emergency Deficit Control Act of 1985, the chairman
of the Committee on the Budget of the Senate shall increase the
allocation called for in section 302(a) of the Congressional
Budget Act of 1974 (2 U.S.C. 633(a)) to the appropriate
Committee on Appropriations and shall also appropriately adjust
all other budgetary aggregates and levels contained in this
resolution.
(c) Senate Defense Firewall.--
(1) Definition.--In this subsection, for purposes
of enforcement in the Senate for fiscal year 2002, the
term ``discretionary spending limit'' means--
(A) for the defense category,
$325,070,000,000 in new budget authority; and
(B) for the nondefense category,
$336,230,000,000 in new budget authority.
(2) Point of order in the senate.--
(A) In general.--After the adjustment to
the section 302(a) allocation to the Committee
on Appropriations is made pursuant to
subsection (b) and except as provided in
subparagraph (B), it shall not be in order in
the Senate to consider any bill, joint
resolution, amendment, motion, or conference
report that exceeds any discretionary spending
limit set forth in this subsection.
(B) Exception.--This paragraph shall not
apply if a declaration of war by Congress is in
effect.
(3) Waiver and appeal.--This subsection 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 in the Senate to sustain an appeal of
the ruling of the Chair on a point of order raised
under this subsection.
SEC. 204. COMPLIANCE WITH SECTION 13301 OF THE BUDGET ENFORCEMENT ACT
OF 1990.
(a) In General.--In the House of Representatives,
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 such
Act to the Committee on Appropriations amounts for the
discretionary administrative expenses of the Social Security
Administration.
(b) Special Rule.--In the House of Representatives, for
purposes of applying section 302(f) of the Congressional Budget
Act of 1974, estimates of the level of total new budget
authority and total outlays provided by a measure shall include
any discretionary amounts provided for the Social Security
Administration.
Subtitle B--Reserve Funds
SEC. 211. RESERVE FUND FOR MEDICARE.
(a) Medicare Reform and Prescription Drugs.--If the
Committee on Finance of the Senate or the Committee on Ways and
Means or the Committee on Energy and Commerce of the House of
Representatives reports a bill or joint resolution, or an
amendment is offered thereto, or a conference report thereon is
submitted, which reforms 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, 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 the outlays resulting
therefrom) in this resolution by the amount provided by that
measure for that purpose, but not to exceed $0 for fiscal year
2002, $59,100,000,000 for the period of fiscal years 2002
through 2006, and $300,000,000,000 for the period of fiscal
years 2002 through 2011.
(b) Medicare Payments to Home Health Agencies.--
(1) In general.--Subject to paragraph (2), if the
Senate Committee on Finance or the House Committee on
Ways and Means or Committee on Energy and Commerce
report a bill, or if an amendment thereto is offered or
a conference report thereon is submitted, that repeals
the 15 percent reduction in payments under the medicare
program to home health agencies enacted by the Balanced
Budget Act of 1997 and now scheduled to go into effect
on October 1, 2002, the appropriate chairman of the
Committee on the Budget may increase the allocation of
new budget authority and outlays to that committee and
other appropriate budgetary aggregates and levels by
the amount the amount provided by that measure for that
purpose, but not to exceed $0 in new budget authority
and outlays in 2002, $4,000,000,000 for the period 2002
through 2006, and $13,700,000,000 for the period 2002
through 2011.
(2) Surplus.--Legislation described in paragraph
(1) may not, when taken together with all other
previously-enacted legislation (except for legislation
enacted pursuant to subsection (a)), reduce the on-
budget surplus below the level of the Medicare Hospital
Insurance Trust Fund surplus in any fiscal year covered
by this resolution.
SEC. 212. RESERVE FUND FOR FAMILY OPPORTUNITY ACT.
(a) In General.--Subject to subsection (b), if the
Committee on Finance of the Senate or the Committee on Energy
and Commerce of the House of Representatives 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 opportunity to expand medicaid coverage for children
with special needs, allowing families of disabled children with
the opportunity to purchase coverage under the medicaid program
for such children (commonly referred to as the ``Family
Opportunity Act of 2001''), 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 the outlays resulting
therefrom) in this resolution by the amount provided by that
measure for that purpose, but not to exceed $227,000,000 in new
budget authority and $180,000,000 in outlays for fiscal year
2002, $3,035,000,000 in new budget authority and $2,724,000,000
in outlays for the period of fiscal years 2002 through 2006,
and $8,337,000,000 in new budget authority and $7,867,000,000
in outlays for the period of fiscal years 2002 through 2011.
(b) Surplus.--Legislation described in subsection (a) may
not, when taken together with all other previously-enacted
legislation (except for legislation enacted pursuant to section
211), reduce the on-budget surplus below the level of the
Medicare Hospital Insurance Trust Fund surplus in any fiscal
year covered by this resolution.
SEC. 213. RESERVE FUND FOR AGRICULTURE.
(a) In General.--(1) Subject to subsection (b), if the
Committee on Agriculture, Nutrition, and Forestry of the Senate
or the Committee on Agriculture of the House of Representatives
reports a bill, or an amendment thereto is offered, or a
conference report thereon is submitted, to reauthorize the
Federal Agriculture Improvement Act of 1996, title I of that
Act, and other appropriate agricultural production legislation,
the appropriate Chairman of the Committee on the Budget may
increase the allocation of new budget authority and outlays to
that committee for fiscal years 2003 through 2011 by the amount
of new budget authority (and the outlays resulting therefrom)
provided by that measure for that purpose not to exceed
$66,150,000,000 in new budget authority and outlays for fiscal
years 2003 through 2011.
(2) In the House of Representatives, if an adjustment is
made under paragraph (1), the Chairman of the Committee on the
Budget may adjust the fiscal year 2002 level by an amount not
to exceed the adjustment that is made for fiscal year 2003 (and
reduce the adjustment made for fiscal year 2003 by that
amount).
(b) Surplus.--Legislation described in subsection (a) may
not, when taken together with all other previously-enacted
legislation (except for legislation enacted pursuant to section
211), reduce the on-budget surplus below the level of the
Medicare Hospital Insurance Trust Fund surplus in any fiscal
year covered by this resolution.
SEC. 214. RESERVE FUND FOR ADDITIONAL TAX CUTS AND DEBT REDUCTION.
If the report provided pursuant to section 202(e)(2) of the
Congressional Budget Act of 1974, the budget and economic
outlook: update (for fiscal years 2002 through 2011), estimates
an on-budget surplus for any of fiscal years 2001 through 2011
that exceeds the estimated on-budget surplus set forth in the
Congressional Budget Office's January 2001 budget and economic
outlook for such fiscal year, the chairman of the Committee on
the Budget of the House may, in an amount not to exceed the
increase in such surplus for that fiscal year--
(1) reduce the recommended level of Federal
revenues and make other appropriate adjustments
(including the reconciliation instructions) for that
fiscal year;
(2) reduce the appropriate level of the public
debt, increase the amount of the surplus, and make
other appropriate adjustments for that fiscal year; or
(3) any combination of paragraphs (1) and (2).
SEC. 215. TECHNICAL RESERVE FUND FOR STUDENT LOANS.
(a) In General.--Subject to subsection (b), if the
Committee on Health, Education, Labor, and Pensions of the
Senate reports a bill, or an amendment thereto is offered, or a
conference report thereon is submitted, or the Committee on
Education and the Workforce of the House of Representatives
reports a bill, or an amendment is offered, or a conference
report is submitted, that provides additional resources for
legislation that repeals the replacement interest rate
structure for student loans scheduled to occur on July 1, 2003,
the appropriate Chairman of the Committee on the Budget may
increase the allocation of new budget authority and outlays to
the appropriate committee--
(1) for fiscal years 2001 and 2002 by the amount of
new budget authority (and the outlays resulting
therefrom) provided by that measure for that purpose
not to exceed $110,000,000 in new budget authority and
$100,000,000 outlays;
(2) for fiscal years 2001 through 2006 by the
amount of new budget authority (and the outlays
resulting therefrom) provided by that measure for that
purpose not to exceed $3,440,000,000 in new budget
authority and $2,840,000,000 outlays; and
(3) for fiscal years 2001 through 2011 by the
amount of new budget authority (and the outlays
resulting therefrom) provided by that measure for that
purpose not to exceed $7,665,000,000 in new budget
authority and $6,590,000,000 outlays.
(b) Surplus.--Legislation described in subsection (a) may
not, when taken together with all other previously-enacted
legislation (except for legislation enacted pursuant to section
211), reduce the on-budget surplus below the level of the
Medicare Hospital Insurance Trust Fund surplus in any fiscal
year covered by this resolution.
SEC. 216. RESERVE FUND FOR HEALTH INSURANCE FOR THE UNINSURED.
(a) In General.--Subject to subsection (b), if the
Committee on Finance of the Senate or the Committee on Energy
and Commerce or Committee on Ways and Means of the House of
Representatives report 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 committee allocations for that committee and
other appropriate budgetary aggregates and allocations of new
budget authority (and the outlays resulting therefrom) and may
revise the revenue aggregates and other appropriate budgetary
aggregates and allocations in this resolution by the amount
provided by that measure for that purpose, but not to exceed
$28,000,000,000 in new budget authority and outlays for the
period of fiscal years 2002 through 2011 or $28,000,000,000 in
revenues for the period of fiscal years 2002 through 2011 or
any combination of budget authority and outlays or revenues as
long as the sum of all revisions does not exceed
$28,000,000,000. This resolutions allows these funds to be
spent over the time period of fiscal years 2002 through 2004.
(b) Surplus.--Legislation described in subsection (a) may
not, when taken together with all other previously-enacted
legislation (except for legislation enacted pursuant to section
211), reduce the on-budget surplus below the level of the
Medicare Hospital Insurance Trust Fund surplus in any fiscal
year covered by this resolution.
SEC. 217. RESERVE FUND FOR DEFENSE IN THE SENATE.
(a) In General.--Subject to subsection (b), if the
President submits a budget amendment and the Committee on
Appropriations or the Committee on Armed Services of the Senate
reports a bill, or an amendment thereto is offered, or a
conference report thereon is submitted, that provides
additional resources for defense spending in response to the
recommendations of the President's National Defense Review, the
Chairman of the Committee on the Budget may increase the
allocation of new budget authority and outlays to that
committee for fiscal year 2002 by the amount of new budget
authority (and the outlays resulting therefrom) provided by
that measure for that purpose.
(b) Surplus.--Legislation described in subsection (a) may
not, when taken together with all other previously-enacted
legislation (except for legislation enacted pursuant to section
211), reduce the on-budget surplus below the level of the
Medicare Hospital Insurance Trust Fund surplus in any fiscal
year covered by this resolution.
SEC. 218. STRATEGIC RESERVE FUND IN THE HOUSE.
(a) Adjustments.--In the House of Representatives, the
chairman of the Committee on the Budget may adjust the
appropriate aggregates and committee allocations of new budget
authority (and outlays flowing therefrom) for fiscal year 2002
for a bill making appropriations for the Department of Defense
and, for fiscal years 2002 through 2011, a bill making
authorizations for the Department of Defense, a bill providing
a prescription drug benefit, and any other appropriate
legislation. The chairman may also make adjustments for
amendments to or conference reports on such bills. In making
adjustments under this subsection, the chairman shall consider,
as appropriate, the recommendations of the President's National
Defense Review and any statement of administrative policy or
supplemental budget request relating to any legislation
referred to in this subsection.
(b) Limitations.--(1) The adjustments for any bill referred
to in subsection (a) shall be in an amount not to exceed the
amount by which such bill breaches the applicable allocation or
aggregate.
(2) Legislation described in subsection (a) may not, when
taken together with all other previously-enacted legislation
(except for legislation enacted pursuant to section 211),
reduce the on-budget surplus below the level of the Medicare
Hospital Insurance Trust Fund surplus in any fiscal year
covered by this resolution.
Subtitle C--Miscellaneous Provisions
SEC. 221. 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 Committee on the Budget of the
House of Representatives; and
(2) such chairman, as applicable, may make any
other necessary adjustments to such levels to carry out
this resolution.
(d) Enforcement in the House.--
(1) In general.--In the House of Representatives,
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 2002 and the total for fiscal year 2002 and the
four ensuing fiscal years.
(2) Appropriate levels.--For purposes of
enforcement of the Congressional Budget Act of 1974 in
the House of Representatives, the appropriate levels of
total new budget authority and total budget outlays for
fiscal years 2002 through 2011 prescribed by this
resolution pursuant to section 301(a)(1) of such Act
shall be based upon the table entitled ``Conference
Report Fiscal Year 2002, Budget Resolution Total
Spending and Revenues'' in conjunction with the
provisions of title II of this resolution.
(e) Enforcement in the Senate.--The Senate, for purposes of
enforcement of the Congressional Budget Act of 1974 and this
resolution, measures discharged pursuant to Senate Resolution 8
shall be considered as if the measure had been reported from
the committee of jurisdiction.
SEC. 222. EXERCISE OF RULEMAKING POWERS.
Congress adopts the provisions of this title--
(1) as an exercise of the rulemaking power of the
Senate and the House of Representatives, respectively,
and as such they shall be considered as part of the
rules of each House, or of that House to which they
specifically apply, and such rules shall supersede
other rules only to the extent that they are
inconsistent therewith; and
(2) with full recognition of the constitutional
right of either House to change those rules (so far as
they relate to that House) at any time, in the same
manner, and to the same extent as in the case of any
other rule of that House.
TITLE III--SENSE OF THE SENATE AND CONGRESS PROVISIONS
Subtitle A--Sense of the Senate
SEC. 301. SENSE OF THE SENATE ON CONSERVATION.
It is the sense of the Senate that conservation funding is
a priority of the One Hundred Seventh Congress.
SEC. 302. SENSE OF THE SENATE ON AIDS AND OTHER INFECTIOUS DISEASES.
Notwithstanding any other provision of this resolution, it
is the sense of the Senate that:
(1) Findings.--The Senate finds the following:
(A) HIV/AIDS, having already infected over
58 million people worldwide, is devastating the
health, economies, and social structures in
dozens of countries in Africa, and increasingly
in Asia, the Caribbean and Eastern Europe.
(B) AIDS has wiped out decades of progress
in improving the lives of families in the
developing world. As the leading cause of death
in Africa, AIDS has killed 17 million and will
claim the lives of one quarter of the
population, mostly productive adults, in the
next decade. In addition, 13 million children
have been orphaned by AIDS--a number that will
rise to 40 million by 2010.
(C) The Agency for International
Development, along with the Centers for Disease
Control, Department of Labor, and Department of
Defense have been at the forefront of the
international battle to control HIV/AIDS, with
global assistance totaling $330,000,000 from
the United States Agency for International
Development and $136,000,000 from other
agencies in fiscal year 2001, primarily focused
on targeted prevention programs.
(D) While prevention is key, treatment and
care for those affected by HIV/AIDS is an
increasingly critical component of the global
response. Improving health systems, providing
home-based care, treating AIDS-associated
diseases like tuberculosis, providing for
family support and orphan care, and making
antiretroviral drugs against HIV available will
reduce social and economic damage to families
and communities.
(E) Pharmaceutical companies recently
dramatically reduced the prices of
antiretroviral drugs to the poorest countries.
With sufficient resources, it is now possible
to improve treatment options in countries where
health systems are able to deliver and monitor
the medications.
(F) The United Nations AIDS program
estimates it will cost at least $3,000,000,000
for basic AIDS prevention and care services in
Sub-Saharan Africa alone, and at least
$2,000,000,000 more if antiretroviral drugs are
provided widely. In Africa, only $500,000,000
is currently available from all donors, lending
agencies and African governments themselves.
(2) Sense of the senate.--It is the sense of the
Senate that the spending levels in this budget
resolution shall be increased by $200,000,000 in fiscal
year 2002 and by $500,000,000 in 2003 and for each year
thereafter for the purpose of helping the neediest
countries cope with the burgeoning costs of prevention,
care and treatment of those affected by HIV/AIDS and
associated infectious diseases.
SEC. 303. SENSE OF THE SENATE ON CONSOLIDATED HEALTH CENTERS.
It is the sense of the Senate that appropriations for
consolidated health centers under section 330 of the Public
Health Service Act (42 U.S.C. 254b) should be increased by 100
percent over the next 5 fiscal years in order to double the
number of individuals who receive health services at community,
migrant, homeless, and public housing health centers.
SEC. 304. FUNDING FOR DEPARTMENT OF JUSTICE PROGRAMS FOR STATE AND
LOCAL LAW ENFORCEMENT ASSISTANCE.
It is the sense of the Senate that the levels in this
resolution assume increased funding for fiscal year 2002 for
the Department of Justice State and local law enforcement grant
programs.
SEC. 305. SENSE OF THE SENATE REGARDING UNITED STATES COAST GUARD
FISCAL YEAR 2002 FUNDING.
It is the sense of the Senate that any level of budget
authority and outlays in fiscal year 2002 below the level
assumed in this resolution for the Coast Guard would require
the Coast Guard to--
(1) close numerous units and reduce overall mission
capability, including the counter narcotics
interdiction mission which was authorized under the
Western Hemisphere Drug Elimination Act;
(2) reduce the number of personnel of an already
streamlined workforce; and
(3) reduce operations in a manner that would have a
detrimental impact on the sustainability of valuable
fish stocks in the North Atlantic and Pacific Northwest
and its capacity to stem the flow of illicit drugs and
illegal immigration into the United States.
SEC. 306. STRENGTHENING OUR NATIONAL FOOD SAFETY INFRASTRUCTURE.
(a) Finding.--The Senate finds that the United States food
supply is one of the safest in the world, but in order to
maintain the integrity of our food supply in the face of
emerging threats, we must make the necessary investments now,
in a time of surplus.
(b) Sense of the Senate.--It is the sense of the Senate
that the levels in this resolution assume that the appropriate
amount should be invested at the Food and Drug Administration
and the Center for Disease Control food activities next year in
order to strengthen our national food safety infrastructure
by--
(1) increasing the number of inspectors within the
Food and Drug Administration to enable the Food and
Drug Administration to inspect high-risk sites at least
annually;
(2) supporting research that enables us to meet
emerging threats;
(3) improving surveillance to identify and trace
the sources and incidence of food-borne illness;
(4) otherwise maintaining at least current funding
levels for food safety initiatives in the Food and Drug
Administration and the United States Department of
Agriculture; and
(5) providing additional funds should such needs
arise due to emerging food safety threats.
SEC. 307. SENSE OF THE SENATE WITH RESPECT TO INCREASING FUNDS FOR
RENEWABLE ENERGY RESEARCH AND DEVELOPMENT.
It is the sense of the Senate that the Senate recognizes
the importance of renewable energy resources and that providing
for such technologies should be increased by at least
$450,000,000 for fiscal year 2002 and at a rate in excess of
inflation in subsequent years.
Subtitle B--Sense of the Congress
SEC. 311. ASSET BUILDING FOR THE WORKING POOR.
(a) Findings.--Congress find the following:
(1) For the vast majority of United States
households, the pathway to the economic mainstream and
financial security is not through spending and
consumption, but through savings, investing, and the
accumulation of assets.
(2) One-third of all Americans have no assets
available for investment and another 20 percent have
only negligible assets. The situation is even more
serious for minority households; for example, 60
percent of African-American households have no or
negative financial assets.
(3) Nearly 50 percent of all children in America
live in households that have no assets available for
investment, including 40 percent of Caucasian children
and 73 percent of African-American children.
(4) Up to 20 percent of all United States
households do not deposit their savings in financial
institutions and, thus, do not have access to the basic
financial tools that make asset accumulation possible.
(5) Public policy can have either a positive or a
negative impact on asset accumulation. Traditional
public assistance programs based on income and
consumption have rarely been successful in supporting
the transition to economic self-sufficiency. Tax
policy, through $288,000,000,000 in annual tax
incentives, has helped lay the foundation for the great
middle class.
(6) Lacking an income tax liability, low-income
working families cannot take advantage of asset
development incentives available through the Federal
tax code.
(7) Individual Development Accounts have proven to
be successful in helping low-income working families
save and accumulate assets. Individual Development
Accounts have been used to purchase long-term, high-
return assets, including homes, postsecondary education
and training, and small business.
(b) Sense of Congress.--It is the sense of Congress that
the Federal tax code should support a significant expansion of
Individual Development Accounts so that millions of low-income,
working families can save, build assets, and move their lives
forward; thus, making positive contributions to the economic
and social well-being of the United States, as well as to its
future.
SEC. 312. FEDERAL FIRE PREVENTION ASSISTANCE.
(a) Findings.--Congress finds the following:
(1) Increased demands on firefighting and emergency
medical personnel have made it difficult for local
governments to adequately fund necessary fire safety
precautions.
(2) The Government has an obligation to protect the
health and safety of the firefighting personnel of the
United States and to ensure that they have the
financial resources to protect the public.
(3) The high rates in the United States of death,
injury, and property damage caused by fires
demonstrates a critical need for Federal investment in
support of firefighting personnel.
(b) Sense of Congress.--It is the sense of Congress that
the Government should support the core operations of the
Federal Emergency Management Agency by providing needed fire
grant programs to assist our firefighters and rescue personnel
as they respond to more than 17,000,000 emergency calls
annually. To accomplish this task, Congress supports
preservation of the Assistance to Firefighters grant program.
Continued support of the Assistance to Firefighters grant
program will enable local firefighters to adequately protect
the lives of countless Americans put at risk by insufficient
fire protection.
SEC. 313. FUNDING FOR GRADUATE MEDICAL EDUCATION AT CHILDREN'S TEACHING
HOSPITALS.
It is the sense of Congress that:
(1) Function 550 includes an appropriate level of
funding for graduate medical education conducted at
independent children's teaching hospitals in order to
ensure access to care by millions of children
nationwide.
(2) An emphasis should be placed on the role played
by community health centers in underserved rural and
urban communities.
(3) Funding under function 550 should also reflect
the importance of the Ryan White CARE Act to persons
afflicted with HIV/AIDS.
SEC. 314. CONCURRENT RETIREMENT AND DISABILITY BENEFITS TO RETIRED
MEMBERS OF THE ARMED FORCES.
(a) Findings.--Congress finds that the Secretary of Defense
is the appropriate official for evaluating the existing
standards for the provision of concurrent retirement and
disability benefits to retired members of the Armed Forces and
the need to change these standards.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the Secretary of Defense should report not
later than 180 days after the date of adoption of this
resolution to the congressional committees of
jurisdiction on the provision of concurrent retirement
and disability benefits to retired members of the Armed
Forces;
(2) the report should address the number of
individuals retired from the Armed Forces who would
otherwise be eligible for disability compensation, the
comparability of the policy to Office of Personnel
Management guidelines for civilian Federal retirees,
the applicability of this policy to prevailing private
sector standards, the number of individuals potentially
eligible for concurrent benefits who receive other
forms of Federal assistance and the cost of that
assistance, and alternative initiatives that would
accomplish the same end as concurrent receipt of
military retired pay and disability compensation;
(3) the Secretary of Defense should submit
legislation that he considers appropriate;
(4) upon receiving such report, the committees of
jurisdiction, working with the Committees on the Budget
of the House and Senate, should consider appropriate
legislation; and
(5) CBO and OMB should report not later than 30
days after the date of adoption of this resolution to
the Committees on the Budget on the risk that provision
of full concurrent receipt of military retired pay and
disability compensation would reduce the surplus below
the level of the Medicare Hospital Insurance Trust
Fund.
SEC. 315. FEDERAL EMPLOYEE PAY.
(a) Findings.--Congress finds the following:
(1) Members of the uniformed services and civilian
employees of the United States make significant
contributions to the general welfare of the Nation.
(2) Increases in the pay of members of the
uniformed services and of civilian employees of the
United States have not kept pace with increases in the
overall pay levels of workers in the private sector, so
that there now exists--
(A) a 32 percent gap between compensation
levels of Federal civilian employees and
compensation levels of private sector workers;
and
(B) an estimated 10 percent gap between
compensation levels of members of the uniformed
services and compensation levels of private
sector workers.
(3) The President's budget proposal for fiscal year
2002 includes a 4.6 percent pay raise for military
personnel.
(4) The Office of Management and Budget has
requested that Federal agencies plan their fiscal year
2002 budgets with a 3.6 percent pay raise for civilian
Federal employees.
(5) In almost every year during the past 2 decades,
there have been equal adjustments in the compensation
of members of the uniformed services and the
compensation of civilian employees of the United
States.
(b) Sense of Congress.--It is the sense of Congress 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. 316. SALES TAX DEDUCTION.
(a) Findings.--Congress finds that--
(1) in 1986 the ability to deduct State sales taxes
was eliminated from the Federal tax code;
(2) the States of Tennessee, Texas, Wyoming,
Washington, Florida, Nevada, and South Dakota have no
State income tax;
(3) the citizens of those seven States continue to
be treated unfairly by paying significantly more in
taxes to the Government than taxpayers with an
identical profile in different State because they are
prohibited from deducting their State sales taxes from
their Federal income taxes in lieu of a State income
tax;
(4) the design of the Federal tax code is
preferential in its treatment of States with State
income taxes over those without State income taxes;
(5) the current Federal tax code infringes upon
States' rights to tax their citizens as they see fit in
that the Federal tax code exerts unjust influence on
States without State income taxes to impose one their
citizens;
(6) the current surpluses that our Government holds
provide an appropriate time and opportunity to allow
taxpayers to deduct either their State sales taxes or
their State income taxes from their Federal income tax
returns; and
(7) over 50 Members of the House of Representatives
have cosponsored legislation to restore the sales tax
deduction option to the Federal tax code.
(b) Sense of Congress.--It is the sense of Congress that
the Committee on Ways and Means and the Committee on Finance
should consider legislation that makes State sales tax
deductible against Federal income taxes.
Jim Nussle,
John E. Sununu,
Managers on the Part of the House.
Pete Domenici,
Chuck Grassley,
Don Nickles,
Phil Gramm,
Christopher Bond,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
The managers on the part of the Senate and the House at
the conference on disagreeing votes of the two Houses on the
amendment of the Senate to the concurrent resolution (House
Concurrent Resolution 83), setting forth the congressional
budget for the United States for fiscal years 2001, 2002, 2003,
2004, 2005, 2006, 2007, 2008 2009, 2010 and 2011 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 recommend in the accompanying conference report:
The Senate amendment struck all out of the House
resolution after the resolving clause and inserted a substitute
text.
The House recedes from its disagreement to the amendment
of the Senate with an amendment which is a substitute for the
House resolution and the Senate amendment.
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 102 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.
Aggregates and Function Levels
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 and presented in CBO's ``The Economic and Budget
Outlook: Fiscal Years 2002-2011'' (January 2001).
House Resolution.--CBO's economic assumptions were used.
Senate Amendment.--CBO's economic assumptions were used.
Conference Agreement.--CBO's economic assumptions were
used.
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 are discussed in the following section. The Conference
Agreement provides aggregate discretionary spending in 2002 of
$661.3 billion in budget authority (BA) and $682.8 billion in
outlays.
These two aggregate numbers are allocated to the
Appropriations Committees to be suballocated to their 13
individual appropriation subcommittees. For the purposes of
presentation in this Conference Agreement, functional
discretionary numbers are set at fiscal year 2002 Congressional
Budget Office baseline estimates, and do not reflect any
specific policy orientation except for the defense function,
which assumes President Bush's budget authority request for
fiscal year 2002. For years beyond 2002 this report assumes
that the 2002 discretionary function levels grow by inflation.
The only specific discretionary policy decision inherent
in this resolution is a $661.3 billion discretionary budget
authority allocation. The Appropriations Committees are
responsible for allocating this budget authority to their
subcommittees to address specific policy priorities.
function 050: national defense
Major Programs in Function.--Under current law, spending
for Function 050, National Defense, will total $310.3 billion
in BA and $300.6 billion in outlays for 2001. This function
includes funding for the Department of Defense (about 95% of
the function), the defense activities of the Department of
Energy (about 5% of the function), and other defense activities
in other departments and agencies, including the Department of
Transportation, the Department of Justice, the General Services
Administration, and the Selective Service (less than 1% of the
function).
House Resolution.--The resolution establishes levels of
$324.6 billion in budget authority [BA] and $319.3 billion in
outlays in fiscal year 2002, an increase of 4.5 percent in BA
compared with fiscal year 2001. The function totals are $1.71
trillion in BA and $1.68 trillion in outlays over 5 years, and
$3.68 trillion in BA and $3.61 trillion in outlays over 10
years. Funding in the resolution accommodates the President's
proposal to increase military pay and other compensation by
$1.4 billion in 2002. The resolution also assumes an additional
$400 million to improve the quality of housing for military
personnel and their families, and $3.9 billion for the first
year of expanded health benefits for over-65 military retirees
(Tricare for Life). In addition, the resolution accommodates
the President's proposed $2.6-billion initiative ($20 billion
over 5 years) to fund research and development of new
technologies. The Department of Defense intends to apply this
funding to create new capabilities to defend against projected
future threats, following a comprehensive review by the
Secretary of Defense to assess national security needs. To
potentially augment the levels in this function, the resolution
creates two reserve funds that could accommodate additional
defense spending: one, in fiscal year 2001, to eliminate
Department of Defense shortfalls; and a second, in fiscal year
2002, for possible legislation pursuant to the President's
defense review. See also section 1218A.
Senate Amendment.--The Senate amendment provides $334.5
billion in BA and $326.8 billion in outlays in 2002, and $3.69
trillion in BA and $3.62 trillion in outlays over 2002-2011.
These amounts include full funding for the President's request,
which for 2002 constitutes a $14.3. billion increase in BA over
2001--a 4.6 percent nominal increase--and which in 2002
accommodates increases of $1.4 billion in BA for military
personnel pay and retention, $0.4 billion for military housing,
$2.6 billion for research and development for missile defense
and ``transformation,'' and $3.9 billion for the Tricare for
Life program enacted in the 106th Congress. The President's
request also incorporated reductions below inflated baseline
levels for the Department of Energy defense activities
(subfunction 053) and other defense-related activities in
subfunction 054, amounting to approximately $1 billion per year
over 2002-2011.
The Senate amendment includes the President's proposal to
make the Radiation Exposure Compensation Trust Fund a mandatory
program and to delay payments to certain beneficiaries pending
the scientific findings of a study by the National Institute of
Occupational Safety and Health.
The Senate amendment also encompasses increases directed
by certain amendments adopted by the Senate for 2002. These
include an amendment adding $8.5 billion in BA and $6.5 billion
in outlays to redress serious and pressing Defense Health
Program shortfalls ($3.1 billion), unfunded Department of
Energy non-proliferation and ``Stockpile Stewardship''
activities ($900 million), and readiness shortages ($4.5
billion). Another floor amendment added $1.0 billion in
additional BA and $0.7 billion in outlays for the Department of
Energy's Environmental Management program.
Conference Agreement.--For 2001, the Conferees adopted
$316.9 billion in BA and $302.4 billion in outlays. This is an
increase of $6.5 billion in BA over previously enacted--
appropriations for 2001. For 2002, the Conferees adopted.
$324.8 billion in BA and $319.1 billion in outlays. This is an
increase of $14.5 billion above levels enacted to date for
2001. For 2002-2011, the Conference Agreement totals $3.65
trillion in BA and $3.59 trillion in outlays.
Regarding discretionary spending, the Conferees adopted
the House amendment with certain understandings and
alterations. Among the understandings, the primary ones are to
redress shortfalls in the National Defense budget function for
2001 and 2002 regarding the Defense Health Program, readiness,
and certain Department of Energy defense activities. The key
alteration is a revised mechanism to accommodate the as yet
unspecified additional funding needed for the results of the
President's Defense Review to adjust U.S. national security
strategy and defense programs to the requirements twenty-first
century.
To redress shortfalls in 2001, the Conferees have revised
the Section 302(a) allocation up to the level of the statutory
cap for 2001 to accommodate a 2001 supplemental for the
Department of Defense totaling $6.5 billion in BA and $1.8
billion in outlays. The Conferees assume and urge in the
strongest possible terms that this budget authority be used, in
the amounts specified, exclusively for urgent shortfalls in the
Defense Health Program ($1.4 billion) and immediate readiness
needs, including spare parts, training, depot and other
maintenance, fuel and energy costs, and base operations ($5.1
billion).
For discretionary spending in 2002, the Conferees adopted
$325.1 billion in BA and $319.4 billion in outlays. These
totals match the President's request as scored by CBO, together
with the outlays estimated by CBO from the 2001 supplemental
allocation described above. In addition, the Conferees adopted
reserve funds, described more fully in the discussion of Title
II, to accommodate a Presidential budget amendment in response
to the President's Defense Review.
The Conferees assume that, taken together, the National
Defense budget as originally submitted by the President and the
subsequent budget amendment will fully fund the
``transformation'' initiatives recommended by the President and
the Secretary of Defense and all pre-existing priority national
security programs in the Department of Defense and the
Department of Energy. The Conferees are particularly concerned
that the amended budget request fully address all shortfalls
that have heretofore been identified for 2002, including those
in the Defense Health Program (up to $3.1 billion), activities
where readiness has in recent years fallen below optimal levels
(totaling several billions of dollars), and essential national
security programs in the Department of Energy, including
Stockpile Stewardship ($800 million), non-proliferation
activities ($100 million), and Environmental Management
programs (up to $1 billion, which could occur in the fiscal
year deemed most appropriate, 2001 or 2002). The Conferees
agree that it is essential for the National Defense budget as
amended, to fully fund each of these concerns respecting both
shortfalls and ``transformation.''
Regarding mandatory spending, the Conferees adopted the
Senate amendment concerning the Radiation Exposure Compensation
Trust Fund, revised to reflect more recent CBO scoring. This
updated scoring amounts to $172 million in 2002 and $655
million for 2002-2011 with an offsetting reduction of expenses
in the Energy Occupation Illness Compensation fund that brings
net costs to $146 million in 2002 and $440 million for 2002-
2011.
function 150: international affairs
Major Programs in Function.--Under current law, spending
for Function 150, International Affairs, will total $22.4
billion in BA and $19.7 billion in outlays for 2001. This
function includes funding for the operation of the foreign
affairs establishment including embassies and other diplomatic
missions abroad, foreign aid loan and technical assistance
activities in developing countries, security assistance to
foreign governments, activities of the Foreign Military Sales
Trust Fund, U.S. contributions to international financial
institutions and the United Nations, the Export-Import Bank and
other trade promotion activities, and refugee assistance.
House Resolution.--The resolution fully funds the
President's requested levels of $23.9 billion in budget
authority [BA] and $19.6 billion in outlays in fiscal year
2002, an increase of 6.4 percent in BA compared with fiscal
year 2001. The function totals are $123.8 billion in BA and
$102.0 billion in outlays over 5 years, and $264.2 billion in
BA and $219.7 billion in outlays over 10 years. The levels
fully fund the President's request and accommodate his proposal
to increase the Administration of Foreign Affairs funding by
$888 million above the 2001 level, to a total of $5.7 billion
for fiscal year 2002, and his request to increase military
assistance to Israel by $60 million. In addition, to maintain
and expand programs to stem the flow of cocaine and heroin from
Colombia and its Andean neighbors, the budget assumes the
President's $624-million increase for international narcotics
control and law enforcement. The resolution also assumes
sufficient resources for the Tropical Forest Conservation Act
[TFCA].
Senate Amendment.--The Senate amendment provides $24.1
billion in BA and $19.8 billion in outlays in 2002, and $265.4
billion in BA and $220.9 billion in outlays over 2002-2011.
These amounts include full funding for the President's request,
which for 2002 constitutes a $1.5 billion increase in BA over
2001--a 6.7 percent nominal increase. The Senate amendment also
reflects the Senate's adoption of a floor amendment to increase
the President's request by $200 million in BA in 2002 and by
$500 million in BA in 2003--with commensurate outlays--for the
purpose of assisting the response of needy counties to the
international HIV/AIDS pandemic. The Senate also adopted an
amendment regarding conservation that affected several budget
functions, including the addition of $50 million in BA in every
year over the 2002-2011 period in Function 150.
Conference Agreement.--The Conference Agreement totals
$23.2 billion in BA and $19.1 billion in outlays for 2002. For
2002-2011, the Conference Agreement totals $256.6 billion in BA
and $213.3 billion in outlays, a reduction of $7.6 billion in
BA below the request and the House Amendment. The BA and
outlays for International Affairs equal the amounts of CBO's
inflated baseline for 2002-2011, plus the outlays needed in
2002 to address the payment of arrearages to the UN discussed
below.
Regarding discretionary spending, the Conferees strongly
support Secretary of State Powell's proposals to reinvigorate
the US foreign policy establishment and to expand some
international programs. The Senate expressed this support in
the form of expanding even further proposed programs to address
the HIV/AIDS epidemic in regions, such as Africa.
Regarding the payment of arrearages to the United
Nations, the conferees recognize that Congress has appropriated
funds for the payment of arrears to the UN and related agencies
in 1999 and 2000. Those funds have not been obligated because
not all of the reforms required by authorizing statute have
been met, in particular the requirement that the United States'
assessment for contributions to international peacekeeping
activities be reduced to no more than 25 percent of the total.
Recognizing the substantial reforms that have been negotiated,
the President hasproposed legislation, not subject to PAYGO,
that would release the funds for obligation. The legislative proposal
would increase outlays by $582 million in 2001 and $244 million in
2002. This resolution accommodates the increased spending in its
estimates of outlays from prior year's appropriations. The conferees
direct that if the legislative proposal is included in authorizing
legislation, the cost of such legislation up to the amounts included in
the fiscal year 2001 and 2002 allocations of the appropriations
committee shall not be charged against the allocation of the
authorizing committee for purposes of enforcing this resolution.
function 250: general science, space and technology
Major Programs in Function.--Under current law, spending
for Function 250, General Science, Space and Technology, will
total $21.0 billion in BA and $19.7 billion in outlays for
2001. The General Science, Space and Technology function
consists of funds in two major categories: general science and
basic research, and space flight, research, and supporting
activities. The general science component includes the budgets
for the National Science Foundation [NSF], and the fundamental
science programs of the Department of Energy [DOE]. The largest
component of the function, nearly two thirds of the total, is
for space flight, research, and supporting activities of the
National Aeronautics and Space Administration [NASA] (except
for NASA's air transportation programs, which are included in
Function 400).
House Resolution.--The resolution establishes levels of
$22.2 billion in budget authority [BA] and $21.0 billion in
outlays in fiscal year 2002, an increase of 5.7 percent in BA
compared with fiscal year 2001. The function totals are $115.9
billion in BA and $112.4 billion in outlays over 5 years, and
$247.1 billion in BA and $240.2 billion in outlays over 10
years. The resolution assumes $4.5 billion for the National
Science Foundation [NSF], a $56-million increase from 2001. It
assumes $14.5 billion for the National Aeronautics and Space
Administration [NASA], a 2-percent increase over 2001. This
total allows for the President's recommendations, including
increased funds for International Space Station development and
operations; a 64-percent increase over 2001 for NASA's Space
Launch Initiative; six space shuttle flights a year; and
continued funding for safety improvements in NASA.
Senate Amendment.--The Senate amendment sets forth $22.8
billion in BA and $21.2 billion in outlays in 2002, and $240.1
billion in BA and $232.9 billion in outlays over 2002-2011. The
total spending within Function 250 was amended by the following
two amendments:
The Senate adopted an amendment that added $1.441 billion
in BA and $530 million in outlays in 2002 to the function total
proposed by President Bush. The amendment assumed an increase
of $674 million for NSF in 2002. The increase is intended to
provide additional funding for NSF along a doubling path
similar to that of the National Institutes of Health. NASA
would also receive an increase of $518 million, and DOE science
would increase by $469 million in 2002. The amendment would
allow funding for all of the President's initiatives in
Function 250, as well as address other needs within scientific
community. The total assumed increase above the 2001
appropriated level is $1.661 billion.
The Senate also adopted an amendment related to global
climate changes that affected several functional categories,
including Function 150, 250, 270, 300, and 350. In this
function, the amendment reflected an increase in BA of $50
million each year for 10 years, for a total increase of $500
million in BA from FY2002-2011.
Conference Agreement.--The Conference Agreement assumes
$21.6 billion in BA and $20.7 billion in outlays in 2002, and
$236.3 billion in BA and $230.6 billion in outlays over the
2002-2011 period.
FUNCTION 270: ENERGY
Major Programs in Function.--Under current law, spending
for Function 270 Energy, will total $1.2 billion in BA and
-$0.1 billion in outlays for 2001. This Function includes
civilian activities of the Department of Energy, the Rural
Utilities Service, the power programs of the Tennessee Valley
Authority (TVA), and the Nuclear Regulatory Commission (NRC).
Mandatory spending in this function contains large levels of
offsetting receipts, resulting in net mandatory spending of
-$1.9 billion in BA and -$3.2 billion in outlays for 2001.
Congress provided $3.1 billion in discretionary BA for 2001.
House Resolution.--The resolution establishes levels of
$835, million in budget authority [BA] and -$234 million in
outlays in fiscal year 2002, a decrease of 33 percent in BA
compared with fiscal year 2001. The 5-year function totals are
$4.4 billion in BA and -$2.2 billion in outlays; and the 10-
year totals are $14.5 billion in BA and $598 million in
outlays. The resolution assumes the President's proposed $1.4
billion over 10 years (a $120-million increase) for the
Department of Energy's Weatherization Assistance Program to
help low-income families who live in poorly insulated housing
or have insufficient heating or cooling systems. It also
assumes a total of $8 million to support the Northeast Heating
Oil Reserve that was established because of low heating oil
stocks. Finally, in light of past management and security
problems, the resolution accommodates the President's efforts
to reform the Department of Energy.
Senate Amendment.--The Senate amendment sets forth $1.676
billion in BA and $.018 billion in outlays in 2002, and $17.162
billion in BA and $2.785 billion in outlays over the 2002-2011
period. The Senate amendment assumes the President's budget
with the following Senate adopted amendments to discretionary
spending: $205 million in BA each year over the 2002-2011
period to reduce greenhouse gas emissions, $450 million in BA
in 2002 for Renewable Energy R&D, and $150 million in BA in
2002 for Fossil Energy R&D. The Senate amendment does not
assume the President's proposal for the Arctic National
Wildlife Refuge (ANWR).
Conference Agreement.--The Conference Agreement assumes
$1.36 billion in BA and -$0.02 in outlays in 2002 and $15.9
billion in BA and $2.2 billion in outlays over the 2002-2011
period.
FUNCTION 300: NATURAL RESOURCES AND THE ENVIRONMENT
Major Programs in Function.--Under current law, spending
for Function 300 Natural Resources and the Environment, will
total $28.8 billion in BA and $26.4 billion in outlays for
2001. This Function includes funding for water resources,
conservation and land management, recreation resources, and
pollution control and abatement. Agencies with major program
activities within the Function include the Environmental
Protection Agency (EPA), the Army Corps of Engineers, the
National Oceanic and Atmospheric Administration (NOAA), the
Forest Service (within the Department of Agriculture), and the
Department of the Interior, including the National Park
Service, the Fish and Wildlife Service, the U.S. Geological
Survey, the Bureau of Land Management and the Bureau of
Reclamation, among others.
House Resolution.--The resolution establishes levels of
$26.7 billion in budget authority [BA] and $26.4 billion in
outlays in fiscal year 2002, a decrease of 7.3 percent in BA
compared with fiscal year 2001. The 5-year function totals are
$137.1 billion in BA and $136.3 billion in outlays; and the 10-
year totals are $289.3 billion in BA and $285.3 billion in
outlays. The resolution accommodates the President's
recommendation to fully fund the Land and Water Conservation
[LWC] Fund at $900 million starting in 2002, an increase of
$356 million over 2001. It also provides for an addition of
$440 million in 2002 as a down payment on eliminating the
National Park Service's deferred maintenance backlog, currently
pegged at $4.9 billion. In addition, it assumes more than $1
billion in EPA grants for States and tribes to administer
environmental programs, and a total of $3.7 billion in funding
for the EPA's Operating Program, which comprises the agency's
core regulatory, research, and enforcement activities. The
resolution would support substantially reducing the backlog of
school repairs and maintenance in the Bureau of Indian Affairs,
with the goal of eliminating the backlog within 5 years, and
assumes increased funding for the Army Corps of Engineers
program evaluating proposed development in wetlands. The
resolutions also accepts administration's proposed extension of
user fee pilot programs in the Forest Service and the National
Park Service, but does not include increase in Corps of
Engineers recreation fees.
Senate Amendment.--The Senate amendment sets forth $29.6
billion in BA and $29.3 billion in outlays in 2002, and $296.4
billion in BA and $292.3 billion in outlays over 2002-2011. The
Senate amendment assumes the President's budget with the
following Senate adopted amendments to discretionary spending:
$250 million in BA and $199 million in outlays in 2002 to fully
fund the Conservation Spending Cap, $44 million in BA in 2002
for water system improvements, $1.3 billion in BA and outlays
in 2002 for agriculture conservation programs, $100 million in
BA in 2002 to reduce greenhouse gases, $800 million in BA in
2002 for wastewater infrastructure improvements, and $100
million in BA in 2002 for the Bureau of Reclamation
construction account.
The Senate amendment assumes mandatory spending of $350
million in BA and outlays each year over the 2002-2011 period
to address agricultural conservation needs.
Conference Agreement.--The Conference Agreement assumes
$30.4 billion in BA and $28.7 billion in outlays in 2002, and
$345.7 billion in BA and $336.8 billion in outlays over the
2002-2011 period. The Conference Agreement accepts the Senate
position on the extension of the recreational fee demonstration
program. The Conference Agreement assumes mandatory agriculture
spending of $350 million in BA and outlays in 2002. It also
assumes a reserve fund of $350 million per year in BA and
outlays over the 2003-2011 period to be allocated to the
Agriculture Committee for conservation programs.
FUNCTION 350: AGRICULTURE
Major Programs in Function.--Under current law, spending
for Function 350 Agriculture, is estimated to total $26.3
billion in budget authority (BA) and $23.7 billion in outlays
for FY 2001. This Function includes funding for federal
programs intended to promote the economic stability of
agriculture through direct assistance and loans to food and
fiber producers; provide regulatory, inspection and reporting
services for agricultural markets; and promote research as well
as education in agriculture and nutrition.
House Resolution.--The resolution establishes levels of
$19.1 billion in budget authority [BA] in fiscal year 2002, and
$17.5 billion in outlays. The 5-year function totals are $92.5
billion in BA and $84.7 billion in outlays; and the 10-year
totals are $172.5 billion in BA and $157.3 billion in outlays.
The resolution accommodates the President's recommendations,
including: support of United States Department of Agriculture
[USDA] food safety activities, including providing 7,600 meat
and poultry inspectors; allocation of conservation assistance
to 650,000 landowners, farmers, and ranchers; maintaining
funding for priority activities in the Forest Service's
wildland fire management plan, including hazardous fuels
reduction; redirecting USDA research to provide new emphasis in
key areas such as biotechnology, the development of new
agricultural products, and improved protection against emerging
exotic plant and animal diseases as well as crop and animal
pests; and expanding overseas markets for American agricultural
products by strengthening USDA's market intelligence
capabilities and the Department's expertise for resolving
technical trade issues with foreign trading partners. The
resolution contains two reserve funds that would accommodate
additional agricultural needs: a fiscal year 2001 reserve fund
that could be used for emergency Agricultural Market Transition
payments; and a fiscal year 2002 reserve fund that could
accommodate a reauthorization of the Federal Agricultural
Improvement and Reform Act or additional emergency relief.
Senate Amendment.--The Senate amendment revises the 2001
spending levels. It increases BA and outlays by $9 billion to
$35.3 and $32.7 respectively. For 2002, the Senate assumes
$26.2 billion in BA and $24.5 billion in outlays. Over the ten-
year period 2002-2011, the Senate assumes a total of $227.9
billion in BA and $212.8 billion in outlays. The Senate adopted
mandatory amendments which increased CCC spending by $9 billion
in BA and outlays in 2001 and a total of $55 billion in BA and
outlays over the 2002-2011 period. The Senate adopted a
discretionary amendment which added $0.045 billion in BA and
$0.041 billion in outlays in 2002 and $0.45 billion in BA and
$0.446 billion in outlays over the ten-year period 2002-2011.
Conference Agreement.--The Conference Agreement revises
the 2001 spending levels. It increases both BA and outlays by
$5.5 billion to $31.8 billion and $29.2 billion respectively.
For 2002, the Conference Agreement assumes $26.3 billion in BA
and $24.6 billion in outlays. Over the ten-year period 2002-
2011, the agreement assumes a total of $243.2 billion in BA and
$228.0 billion in outlays. The 2001 and 2002 levels assume
$12.5 billion of new mandatory BA and outlays. This money would
be allocated to the Senate and House agriculture authorizing
committees. It is assumed that the additional funds for 2001
and 2002 will address low income concerns in the agriculture
sector today. For 2003 to 2011, the Conference Agreement
assumes increased mandatory BA and outlays totaling $63 billion
to be made available for the extension and revision of the
Federal Agriculture Improvement and Reform Act of 1996, which
expires in 2002. Fiscal Year 2003 monies may be made available
for 2002 crop year support. The money would be placed in a
reserve fund for the authorizing committees. This function
assumes the necessary funding for the modernization plan of
USDA's National Animal Disease Center and National Veterinary
Services Laboratory in Ames, IA.
FUNCTION 370: COMMERCE AND HOUSING CREDIT
Major Programs in Function.--Under current law, spending
for Function 370, Commerce and Housing Credit, will total about
$3.5 billion in BA and $0.2 billion in outlays for 2001.
Function 370 includes both on-budget and an off-budget (Postal
Service) components, but the budget resolution text includes
only the on-budget portion. Both on-budget and total spending
are shown, however, in the summary tables contained in this
Conference Agreement. This budget function includes funding for
discretionary housing programs, such as subsidies for single
and multifamily housing in rural areas and mortgage insurance
provided by the Federal Housing Administration; off-budget net
spending by the Postal Service; discretionary funding for
commerce programs, such as international trade and exports,
science and technology, the census, and small business; and
mandatory spending for deposit insurance activities related to
banks, savings and loans, and credit unions.
House Resolution.--For on-budget spending in this
function, the resolution establishes levels of $7.4 billion in
budget authority [BA] and $4.4 billion in outlays in fiscal
year 2002, an increase of 195 percent in BA compared with
fiscal year 2001. The on-budget function totals are $54.2
billion in BA and $33.5 billion in outlays over 5 years, and
$128.1 billion in BA and $84.3 billion in outlays over 10
years. The resolution assumes the President's recommendation
that premiums for specified Federal Housing Administration
[FHA] programs, such as condominiums, rehabilitation loans, and
multifamily loans, are to be increased so that all single-
family FHA borrowers pay the same premiums, and that the
programs operate without the need for a subsidy.
Senate Amendment.--The Senate amendment does not revise
the levels for 2001. For 2002, the resolution provides $7.7
billion in BA and $4.5 billion in outlays. Over 10 years, the
resolution provides $128.9 billion in BA and $85.0 billion in
outlays. The Senate amendment does not include the House's
assumption of a reduction in fees charged by the Securities and
Exchange Commission. Because of an amendment adopted by the
Senate that dropped the President's proposal to charge exam
fees for state-chartered banks, the Senate amendment is now
comparable to the House resolution in this regard. Further, the
Senate amendment reflects the Senate's adoption of an amendment
to increase spending on the International Trade Administration
by $655 million over 2002-2011 and of another amendment to
restore $264 million in funding in 2002 for programs of the
Small Business Administration to offset cuts that had been
proposed in the President's budget.
Conference Agreement.--The Conference Agreement does not
revise the fiscal year 2001 levels. For 2002, the resolution
provides $10.2 billion in BA and $6.6 billion in outlays. Over
10 years, it provides $152.4 billion in BA and $108.1 billion
in outlays.
FUNCTION 400: TRANSPORTATION
Major Programs in Function.--Under current law, spending
for Function 400, Transportation, will total $62.1 billion in
BA and $51.7 billion in outlays for 2001. The function
primarily comprises funding for the Department of
Transportation, including ground transportation programs, such
as the federal-aid highway program, mass transit, motor carrier
safety, and the National Rail Passenger Corporation (Amtrak);
air transportation through the Federal Aviation Administration
(FAA) airport improvement program, facilities and equipment
program, research, and operation of the air traffic control
system; water transportation through the Coast Guard and
Maritime Administration; the Surface Transportation Board; the
National Transportation Safety Board; and related
transportation safety and support activities within the
Department of Transportation. In addition, funds for air
transportation programs under the auspices of NASA are included
within this function.
House Resolution.--The resolution establishes levels of
$61.0 billion in BA and $55.6 in outlays in fiscal year 2002;
$298.9 billion in BA and $299.8 billion in outlays over 5
years; and $608.1 billion in BA and $639.6 billion in outlays
over 10 years. The resolution accommodates the President's
proposal to fully fund the authorized levels provided for
highways ($32.3 billion) and transit ($6.7 billion) under the
Transportation Equity Act for the 21st Century and for the
Federal Aviation Administration's operating ($6.9 billion),
capital ($2.9 billion), and airport grants ($3.3 billion)
programs under the Aviation Investment and Reform Act for the
21st Century. To assist Americans with disabilities in
overcoming transportation barriers to work, the resolution
assumes the President's $145-million proposal to fund two new
programs under his New Freedom Initiative to increase the
ability of individuals with disabilities to integrate into the
workforce. The resolution also assumes an increase in Coast
Guard operating expenses of $250 million above the fiscal year
2002 level recommended by the President for fiscal year 2002
and subsequent years. This increase is provided to eliminate
Coast Guard vessel and aircraft spare parts problems, to
improve personnel training, to fund new Department of Defense
entitlements, and to operate drug interdiction assets at
optimal levels. (The resolution acknowledged that the Office of
Management and Budget's budget submission contained recently
identified errors, and indicated conferees would seek to
address them.)
Senate Amendment.--The Senate amendment does not revise
the 2001 levels. For 2002, theresolution provides $62.2 billion
in BA and $56.1 billion in outlays. Over 10 years, the resolution
provides $701.6 billion in BA and $645.8 billion in outlays. The Senate
amendment assumes the President's budget plus a Senate adopted
amendment to add $250 million in BA and outlays for the Coast Guard in
2002.
Conference Agreement.--The Conference Agreement does not
revise the 2001 levels. For 2002, the resolution provides $65.0
billion in BA and $56.2 billion in outlays. Over 10 years, it
provides $694.8 billion in BA and $655.6 billion in outlays.
function 450: community and regional development
Major Programs in Function.--Under current law, spending
for Function 450, Community and Regional Development, will
total $11.2 billion in BA and $11.4 billion in outlays for
2001. This function reflects programs that provide Federal
funding for economic and community development in both urban
and rural areas. Funding for disaster relief and insurance--
including activities of the Federal Emergency Management
Agency--also is provided in this function.
House Resolution.--The resolution establishes levels of
$10.1 billion in budget authority [BA] and $11.4 billion in
outlays in fiscal year 2002, a decrease of 9.8 percent in BA
compared with fiscal year 2001. The 5-year totals are $53.2
billion in BA and $53.7 billion in outlays; and the 10-year
totals are $113.9 billion in BA and $108.8 billion in outlays.
Consistent with the President's recommendations, the budget
assumes continuation of Community Development Block Grant
[CDBG] formula funding at the 2001 level. It also assumes that
the Rural Housing and Economic Development Program, begun in
1999, will be terminated due to its duplication of other
programs, such as CDBGs.
Senate Amendment.--For 2002, the Senate amendment sets
forth $11.2 billion in BA and $11.6 billion in outlays. Over
the 2002-2011 ten year period, it assumes $115.0 billion in BA
and $108.0 billion in outlays. The Senate adopted an amendment
to increase by $108 million Federal Emergency Management Agency
(FEMA) funds in 2002. Also adopted was an amendment to increase
clean water grants by $1.0 billion in 2002.
Conference Agreement.--The Conference Agreement does not
revise the fiscal year 2001 levels. For 2002, it sets forth
$11.9 billion in BA and $11.7 billion in outlays. Over the
2002-2011 ten year period, it sets forth $130.7 billion in BA
and $122.8 billion in outlays.
FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT AND SOCIAL SERVICES
Major Programs in Function.--Under current law, spending
for Function 500, Education, Training, Employment and Social
Services, will total $76.9 billion in BA and $69.8. billion in
outlays for 2001. This function includes funding for elementary
and secondary, vocational, and higher education; education
research and other education activities; job training and
employment services; aging services; children and families
services; adoption and foster care assistance; and funding for
the arts and humanities.
House Resolution.--The resolution establishes levels of
$82.1 billion in budget authority [BA] and $76.2 billion in
outlays in fiscal year 2002, an increase of 6.8 percent in BA
compared with fiscal year 2001. The 5-year function totals are
$425.6 billion in BA and $412.7 billion in outlays; and the 10-
year totals are $917.7 billion in BA and $891.7 billion in
outlays.
The resolution assumes the President's proposal to
redirect the $1.2 billion provided for school renovation, first
funded in 2001, allowing States to reallocate the 2001 funds
among school renovation, technology, or special education. For
2002, the budget assumes States can use this funding stream for
priorities such as special education, help for low-perfoming
schools, or accountability reforms.
The resolution also accommodates the President's proposed
increase in program spending of the Department of Education by
$4.6 billion, or 11.5 percent, in fiscal year 2002. It provides
sufficient funding in elementary and secondary education for
the President's ``No Child Left Behind'' education reform plan.
Key initiatives include the following:
--A tripling of reading education funds, to $900 million
in 2002, and a total increase in reading education spending of
$5 billion over 5 years.
--The provision of $2.6 billion for States to improve
teacher quality through high-quality professional development,
recruitment and retention activities.
--A total of $320 million to help States to develop
annual assessments of students, and to establish strong
accountability systems; and $69 million to expand State
participation in the National Assessment of Education Progress,
so that parents, teachers and policymakers can ensure that
students are improving.
--Consolidation and streamlining of existing Federal
elementary and secondary education programs.
The resolution also assumes the following recommendations
by the President: an increase of $137 million for the Impact
Aid construction program, which currently receives only $12.8
million; consolidation and increased funding for teacher
training and recruiting; a sum of $175 million to help charter
schools acquire, construct, or renovate facilities; an increase
for ``character education'' from $9.3 million to $25 million;
an increase for the Troops to Teachers program to $30 million;
an expansion of the teacher student loan forgiveness program by
increasing the loan forgiveness limit from $5,000 to $17,500
for math and science majors who teach those subjects in high-
need schools for 5 years.
To provide fiscal assistance to low-income college
students, the budget accommodates the President's proposal to
increase the Pell Grant program by $1 billion. This will
increase the maximum award for all qualifying students to
$3,850.
The budget also assumes an increase of 6.4 percent in
funding for historically black colleges and graduate
institutions, and Hispanic serving institutions, with a goal of
increasing these programs 30 percent by 2005. The resolution
also accommodates the President's proposed expansion of
programs to protect abused and neglected children under the
Safe and Stable Families Act, and provision of education or
training vouchers to children aging out of foster care.
The resolution creates a $1.25-billion reserve fund for
the Individuals with DisabilitiesEducation Act [IDEA] Part B
grants to States.
Senate Amendment.--The Senate Amendment does not revise
the 2001 levels. For 2002, the Senate provides $111.9 billion
in BA and $79.4 billion in outlays. Over the ten-year period
2002-2011, the Senate provides a total of $1,265.4 billion in
BA, and $1,194.1 billion in outlays.
The Senate adopted the following amendments to the
President's budget:
--For unspecified education funding, an amendment adding
$8.3 billion in discretionary BA and $1.0 billion in outlays in
2002, and adding $242.0 billion in mandatory BA and $223.6
billion in outlays over the period 2003-2011.
--For IDEA (special education), an amendment adding $70.0
billion in mandatory BA and $70.0 billion in outlays over the
ten-year period 2002-2011.
--For the Social Services Block Grant, an amendment
adding $680 million in mandatory BA and outlays in 2002.
--For education technology, an amendment adding $628
million in discretionary BA and $35 million in outlays in 2002.
--For Impact Aid, an amendment adding $300 million in
discretionary BA and $150 million in outlays in 2002.
--For children's services, an amendment adding $271
million in discretionary BA and $243 million in outlays in
2002.
--For American history education, an amendment adding
$100 million in discretionary BA and $25 million in outlays in
2002.
Conference Agreement.--The Conference Agreement revises
2001 levels to $77.0 billion in BA and $69.9 billion in
outlays. For 2002, the Conference Agreement provides $81.2
billion in BA and $76.7 billion in outlays. Over the ten-year
period 2002-2011, the Conference Agreement provides a total of
$904.0 billion in BA and $887.6 billion in outlays. The
Conferees assume that within these aggregate numbers, the
Grants to States program under the Individuals with
Disabilities Education Act (IDEA) will receive funds of at
least $7.59 billion in 2002, and that further additional
resources for education should be focused on this program.
FUNCTION 550: HEALTH
Major Programs in Function.--Under current law, spending
for Function 550, Health, will total $180.1 billion in BA and
$173.0 billion in outlays for 2001. The major programs in this
function include Medicaid, the State Children's Health
Insurance Program, health benefits for federal workers and
retirees, the National Institutes of Health, the Food and Drug
Administration, the Health Resources Services Administration,
Indian Health Services, the Centers for Disease Control and
Prevention, and the Substance Abuse and Mental Health Services
Administration.
House Resolution.--The resolution establishes levels of
$204.0 billion in BA and $201.1 billion in outlays in fiscal
year 2002, an increase of 11.7 percent in BA compared with
fiscal year 2001.
The function totals are $1.20 trillion in BA and $1.19
trillion in outlays over 5 years, and $2.86 trillion in BA and
$2.84 trillion in outlays over 10 years. Funding in the
resolution accommodates the President's proposal to double the
National Institutes of Health [NIH] 1998 funding level of $13.6
billion by 2003. To accomplish this, the 2002 budget assumes
$23.1 billion for NIH, a $2.8 billion increase above the 2001
level. To strengthen the health care safety net, the budget
assumes the President's $124-million increase for community
health centers. The budget also assumes $8.3 billion over 10
years for the enactment of H.R. 600, the Family Opportunity Act
of 2001. Under the Act, States would have the option to expand
Medicaid coverage for children with special needs, allowing
families of disabled children with the opportunity to purchase
coverage under the Medicaid program for such children.
Finally, Function 550 assumes $43.1 billion (fiscal years
2002-2005) of the President's proposed Medicare reform,
including the Immediate Helping Hand Prescription Drug Plan.
(The costs for fiscal years 2006 through 2011 are reflected in
Function 570.) The resolution also assumes the outlay effect of
the President's proposed refundable health care tax credits,
and the impact of the extension of an OBRA 1990 provision
limiting Department of Veterans Affairs [VA] pensions for
Medicaid recipients in nursing homes.
Senate Amendment.--The Senate amendment revises 2001 BA
and outlays by $2.5 billion for the President's Immediate
Helping Hand prescription drug program for seniors. The
amendment sets forth $216.1 billion in BA and $213.2 billion in
outlays in 2002, and $2,938.3 billion in BA and $2,914.4
billion in outlays over 2002-2011.
The Senate amendment as introduced assumed the
President's budget for both mandatory and discretionary
spending. The following provisions were added through floor
amendments. For mandatory spending, an additional $28 billion
was added over 2002-2004 for health spending for the uninsured.
A reserve fund of $200 million in 2002 and $7.9 billion over 10
years was included for the Family Opportunity Act. In
discretionary spending, an additional $700 million was assumed
for NIH spending in 2002. The Indian Health Service was
increased by $67.3 billion over 10 years. Budget authority for
the FDA was increased by $40 million in 2002 and $400 million
over 10 years. Amendments were adopted to increase funding for
graduate medical education at children's hospitals by $50
million in 2002 and to provide an additional $136 million in
2002 for both graduate medical education and consolidated
health centers.
Conference Agreement.--The Conference Agreement does not
revise the 2001 levels. For 2002, the resolution provides
$198.8 billion in BA and $196.7 billion in outlays. Over 10
years, it provides $2,773.8 billion in BA and $2,757.1 billion
in outlays.
Under the Conference Agreement, funding for the
President's Immediate Helping Hand prescription drug proposal
($43.1 billion over 2002-2005 plus an additional $2.5 billion
in 2001) was moved to Function 570 (Medicare). The Conference
Agreement includes a reserve fund for the Family Opportunity
Act of $227 million in 2002 and $8.3 billion over 10 years. The
function totals also include a reserve fund of $28 billion over
10 years for additional health spending for the uninsured; the
budget levels and aggregates in this function assume that these
funds will be spent over the 2002-2004 period. This reserve
fund can be used for either direct spending orrevenue changes
associated with legislation to improve health insurance coverage. The
Conference Agreement also assumes Medicaid Upper Payment Limit savings
of $11.7 billion over 10 years.
FUNCTION 570: MEDICARE
Major Programs in Function.--Under current law, spending
for Function 570, Medicare, will total $217.5 billion in BA and
$217.7 billion in outlays for 2001. Medicare provides health
insurance coverage for persons over age 65 and qualified
disabled workers.
House Resolution.--The resolution establishes levels of
$229.1 billion in budget authority [BA] and outlays in fiscal
year 2002, an increase of 5.3 percent in BA compared with
fiscal year 2001. The function totals are $1.34 trillion in BA
and $1.33 trillion in outlays over 5 years, and $3.31 trillion
in BA and outlays over 10 years. As proposed in the President's
budget, the budget resolution assumes $153 billion over 10
years for Medicare Reform, including the Immediate Helping Hand
Prescription Drug Plan. This total is shared by Function 550
and Function 570; Function 570 incorporates $109.9 billion of
the total over 10 years. The budget is consistent with the
provisions of the Social Security and Medicare Lock-Box Act of
2001, which stipulates that the Medicare Hospital Insurance
[HI] surplus can be used only for debt reduction or Medicare
reform. The resolution establishes a reserve fund that could be
used to accommodate a more expanded Medicare reform/
prescription drug proposal. It also establishes a general
purpose reserve fund that could address Medicare initiatives.
Senate Amendment.--The Senate amendment does not revise
2001 levels. For 2002, the amendment provides $229.1 billion in
BA and outlays. Over 10 years, the amendment provides $3,308.0
billion in BA and $3,307.6 billion in outlays for this
function, the same as the House resolution.
The Senate amendment as introduced assumed the
President's budget for both mandatory and discretionary
spending. The following provisions were added through floor
amendments. A reserve fund was adopted that allows for
additional spending for Medicare reform and prescription drugs
that goes beyond the $153 billion over 10 years already
included in the functional totals and budget aggregates. (This
amount includes $43.1 billion in Function 550 and $109.9
billion in Function 570.) The amount allocated from the reserve
fund will be determined by the Chairman of the Senate Budget
Committee using a Congressional Budget Office cost estimate of
the President's Medicare reform proposal or a comparable
proposal submitted by the Committee on Finance. In no case will
the amount exceed $300 billion over 10 years (including the
$153 already reflected in the budget totals). The Senate
amendment also includes a reserve fund of $13.7 billion over 10
years for additional Medicare home health spending.
Conference Agreement.--The Conference Agreement does not
revise 2001 levels. For 2002, the resolution provides $229.2
billion in BA and $229.1 billion in outlays. Over 10 years, the
resolution provides $3,516.1 billion in BA and $3,515.7 billion
in outlays for this function.
The Conference Agreement includes a reserve fund of up to
$300 billion for Medicare reform and a prescription drug
benefit. The amount allocated from the reserve fund will be
determined by the Chairmen of the Budget Committees of the
House and Senate. The resolution also includes a reserve fund
of $13.7 billion over 10 years for additional Medicare home
health spending. This reserve fund is to be used to finance the
repeal of the 15% reduction in Medicare home health payments,
currently scheduled to take effect on October 1, 2002.
FUNCTION 600: INCOME SECURITY
Major Programs in Function.--Under current law, spending
for Function 600, Income Security, will total $255.9 billion in
BA and $256.9 billion in outlays for 2001. This function
contains: (1) major cash and in-kind means-tested entitlements;
(2) general retirement, disability, and pension programs
excluding Social Security and Veterans' compensation programs;
(3) federal and military retirement programs; (4) unemployment
compensation; (5) low-income housing programs; and (6) other
low-income support programs. This last category includes
Temporary Assistance to Needy Families (TANF), Supplemental
Security Income (SSI), and spending for the refundable portion
of the Earned Income Credit (EIC).
House Resolution.--The resolution establishes levels of
$271.5 billion in budget authority [BA] and $272.1 billion in
outlays in fiscal year 2002, an increase of 6 percent in BA
compared with fiscal year 2001. The function totals are $1.47
trillion in BA and outlays over 5 years, and $3.21 trillion in
BA and $3.20 trillion in outlays over 10 years. Consistent with
the President's budget, the resolution accommodates continued
State innovation, and the mobilization of private-sector,
corporate, and faith-based sources, for addressing the needs of
low-income Americans--a process that began with the historic
1996 welfare reform law. In particular, the budget proposes a
number of initiatives to encourage more charitable giving to
community organizations that are effectively helping
disadvantaged Americans to improve their lives and increase
their families' well-being. Other initiatives are intended to
strengthen low-income families and to address the needs of
children caught in the Nation's foster care system. The budget
provides sufficient funding to renew all expiring public
housing contracts, and adds funding for 34,000 new section 8
vouchers. Additionally, the budget provides new funding to
increase home-ownership among low-income families. Beyond these
priorities, the focus in fiscal year 2002 will be to improve
management of HUD's programs, several of which have been
designated among the General Accounting Office's ``High Risk''
programs, vulnerable to substantial amounts of fraud and
mismanagement.
Other assumptions of the resolution are the following:
--Providing $1.4 billion for Low-Income Home Energy
Assistance Program [LIHEAP] funding to help low-income families
heat their homes.
--Funding the Special Supplemental Nutrition Program for
Women, Infants and Children [WIC] at 7.25 million individuals
per month, maintaining current program level.
--Maintaining current law policies for the Food Stamp
Program, which will result in $20 billion in outlays for
benefits and program administration in fiscal year 2002.
The resolution also accommodates the outlay effects
related to the President's refundable tax proposals.
Senate Amendment.--The Senate amendment does not revise
2001 levels. For 2002, the resolution provides $278.8 billion
in BA and $274.9 billion in outlays. Over 10 years, the
resolution provides $3,210.0 billion in BA and $3,194.5 billion
in outlays. The Senate adopted three amendments to the
President's budget. In mandatory funds for 2002, the Senate
amendment includes $319 million to extend TANF supplemental
grants. In discretionary funds for 2002, the Senate amendment
includes an additional $2.6 billion for Low Income Home Energy
Assistance and $870 million for child care. The remaining
difference between the House resolution and the Senate
amendment is due to the Senate's treatment of advance
appropriations and the greater amount of BA and outlays
provided in the House resolution for the refundable portion of
tax credits.
Conference Agreement.--The Conference Agreement does not
revise 2001 levels. For 2002, the resolution provides $273.8
billion in BA and $272.1 billion in outlays. Over 10 years, it
provides $3,222.5 billion in BA and $3,206.7 billion in
outlays. The Conference Agreement adopts the Senate amendment
regarding TANF supplemental grants.
FUNCTION 650: SOCIAL SECURITY
Major Programs in Function.--Under current law, spending
for Function 650, Social Security, will total $435.2 billion in
BA and $433.1 billion in outlays for 2001. This function
includes Social Security benefits and administrative expenses.
Under provisions of the Budget Enforcement Act, Social Security
tust funds are off-budget. The figures below reflect the on-
budget portions of this function, primarily payments from the
general fund to the trust funds to credit the trust funds for
income taxes collected on Social Security benefits. Both on-
budget and off-budget spending are shown, however, in the
summary tables contained in the statement of managers
accompanying the Conference Agreement.
House Resolution.--For on-budget spending in this
function, the resolution establishes levels of $11.0 billion in
budget authority [BA] and outlays in fiscal year 2002, an
increase of 12.2 percent in BA compared with fiscal year 2001.
The on-budget function totals are $62.8 billion in BA and $62.7
billion in outlays over 5 years, and $150.9 billion in BA and
outlays over 10 years. The resolution supports the President's
approach to Social Security reform through the following
specific measures:
--It assumes provisions of the Social Security and
Medicare Lock-Box Act of 2001 (H.R. 2), recently passed by the
House, which prohibits using Social Security surpluses for any
purpose other than debt reduction or Social Security reform.
--It assumes the President's proposal to provide $7.7
billion for the SSA, an increase of $456 million, or 6.3
percent, above fiscal year 2001. The increase will allow SSA to
process 100,000 more initial disability claims in 2002 than in
2001.
--It makes no changes in current Social Security benefits
or taxes.
Senate Amendment.--The Senate amendment does not revise
2001 on-budget totals of $9.8 billion in BA and outlays. For
2002, the resolution assumes $10.9 billion in both BA and
outlays. Over 10 years, the resolution provides $140.0 billion
in both BA and outlays.
The President's budget assumes no changes to Social
Security benefits. Indirectly, however, the tax cut proposal
would decrease both on-budget spending and the trust fund
surplus. The President's tax proposal would reduce marginal
income rates, thereby decreasing the amount of income taxes
paid on Social Security benefits. This reduces on-budget
payments from the general fund to the trust funds to credit the
trust funds for income taxes paid on Social Security benefits
by $11 billion over 10 years. The difference between the House
resolution and the Senate amendment is that the House holds the
Social Security trust funds harmless for the impact of the tax
cut.
Conference Agreement.--The Conference Agreement does not
revise 2001 on-budget totals. The Senate recedes to the House
and agrees to hold the trust funds harmless for the impact of
any tax cuts resulting from this agreement. For 2002, the
Conference Agreement assumes $11.0 billion in both BA and
outlays. Over 10 years, it provides $150.9 billion in BA and
$150.9 billion in outlays.
FUNCTION 700: VETERANS BENEFITS AND SERVICES
Major Programs in Function.--Under current law, spending
for Function 700 Veterans Benefits and Services, will total
$46.7 billion in BA and $45.9 billion in outlays for 2001. This
budget function includes income security needs of disabled
veterans, indigent veterans, and survivors of deceased veterans
through compensation benefits, pensions, and life insurance
programs. Major education, training, and rehabilitation and
readjustment programs include the Montgomery GI Bill, the
Veterans Educational Assistance program, and the Vocational
Rehabilitation and Counseling program. Veterans can also
receive guarantees on home loans. Roughly half of all spending
in this function is for the Veterans Health Administration,
which is comprised of hospitals, nursing homes, domiciliaries,
and outpatient clinics.
House Resolution.--The resolution establishes levels of
$52.3 billion in BA and $51.6 billion in outlays in fiscal year
2002, an increase of 12 percent in BA compared with fiscal year
2001. The function totals are $278.7 billion in BA and $276.5
in outlays over 5 years, and $594.0 billion in BA and $589.8
billion in outlays over 10 years.
The budget assumes the enactment of veterans' burial
benefits enhancements in H.R. 801, the Veterans' Opportunity
Act of 2001. It also assumes increases in mandatory spending
for Montgomery GI Bill education benefits improvements. The
budget assumes the permanent extension of several expiring
provisions of existing law pertaining to veterans benefits.
These include IRS income verification for means-tested veterans
and survivor benefits; limiting VA pension to Medicaid
recipients in nursing homes; and continuing current housing
loan fees.
Senate Amendment.--The Senate amendment assumes $53.8
billion in BA and $53.1 billion in outlays in 2002, and $600.6
billion in BA and $596.2 billion in outlays over 2002-2011.
TheSenate adopted two amendments to increase funding for Veterans
Medical Care. The first amendment added $1.718 billion in BA each year
from 2002 to 2011 and the second amendment added, $967 million in BA
for 2002.
Conference Agreement.--For 2002, it sets forth $51.5
billion in BA and $50.9 billion in outlays. Over 10 years, it
provides $605.4 billion in BA and $600.9 billion in outlays.
The agreement also assumes an increase in funding in
mandatory spending for improvements to the Montgomery GI Bill
and veterans burial benefits. The agreement also assumes an
extension of several expiring provisions of the Omnibus Budget
Reconciliation Act of 1990.
FUNCTION 750: ADMINISTRATION OF JUSTICE
Major Programs in Function.--Under current law, spending
for Function 750, Administration of Justice, will total $30.6
billion in BA and $30.0 billion in outlays for 2001. This
function provides funding for federal law enforcement
activities. These activities include criminal investigations by
the Federal Bureau of Investigation and the Drug Enforcement
Administration, and border enforcement and the control of
illegal immigration by the Customs Service and the Immigration
and Naturalization Service. Also funded through this function
are the federal courts, federal prison operation and
construction, and criminal justice assistance.
House Resolution.--The resolution establishes levels of
$30.9 billion in budget authority [BA] and $30.3 billion in
outlays in 2002, an increase of 1.0 percent in BA compared with
fiscal year 2001. The function totals are $166.6 billion in BA
and $166.5 billion in outlays over 5 years, and $359.3 billion
in BA and $356.8 billion in outlays over 10 years. The
resolution accommodates the President's proposals to increase
funding for the Drug Enforcement Agency by 9 percent; the
Federal Bureau of Investigation by 8 percent; the Federal
Bureau of Prisons by 8 percent; the U.S. Attorneys by 7
percent; and to hire and train 550 new Border Control agents.
Senate Amendment.--For 2002, the resolution sets forth
$32.4 billion in BA and $31.8 billion in outlays. Over the
2002-2011 ten year period, it sets forth $360.8 billion in BA
and $358.3 billion in outlays. These levels reflect adoption of
an amendment to increase Department of Justice state and local
law enforcement assistance grant programs by $1.5 billion in
2002.
Conference Agreement.--The Conference Agreement sets
forth $32.4 billion in BA and $31.4 billion in outlays for
2002. Over the 2002-2011 ten year period, the agreement sets
forth $378.5 billion in BA and $374.8 billion in outlays.
FUNCTION 800: GENERAL GOVERNMENT
Major Programs in Function.--Under current law, spending
for Function 800 General Government, will total $16.3 billion
in BA and $16.1 billion in outlays for 2001. This function
consists of the activities of the Legislative Branch, the
Executive Office of the President, U.S. Treasury fiscal
operations (including the Internal Revenue Service), personnel
and property management, and general purpose fiscal assistance
to states, localities, and U.S. territories.
House Resolution.--The resolution establishes levels of
$16.7 billion in budget authority [BA] and $16.3 billion in
outlays in fiscal year 2002, an increase of 2.2 percent in BA
compared with fiscal year 2001. The function totals are $84.2
billion in BA and $83.0 billion in outlays over 5 years, and
$176.7 billion in BA and $173.4 billion in outlays over 10
years.
Senate Amendment.--The Senate amendment does not revise
the 2001 levels. For 2002, the resolution assumes $16.6 billion
in BA and $16.3 outlays. Over 10 years, the resolution provides
$176.7 billion in BA and $173.4 billion in outlays.
Conference Agreement.--The Conference Agreement does not
revise the 2001 levels. For 2002, the Conference Agreement
assumes $16.5 billion in both BA and $16.2 billion outlays.
Over 10 years, it provides $183.2 billion in BA and $179.5
billion in outlays.
FUNCTION 900: NET INTEREST
Major Programs in Function.--Under current law, on-budget
spending for Function 900, Net Interest, will total $254.8
billion in BA and outlays for 2002. Net interest is the
interest paid for the federal government's borrowing minus the
interest income received by the federal government. Net
interest includes both on-budget and off-budget components, but
the budget resolution text includes only the on-budget portion.
Both on-budget and total interest spending are shown, however,
in the summary tables contained in the statement of managers
accompanying the Conference Agreement. Interest is a mandatory
payment, with no discretionary component.
House Resolution.--The accounting of net interest in the
budget includes only the on-budget component of interest
spending. This spending declines at a relatively steady but
moderate pace from $274 billion in 2001 to $219 billion in
2011. But even this decline understates--by significant
amounts--the benefits to taxpayers of the debt reduction
incorporated in this budget. When off-budget interest is taken
into account (the increasing Federal credit accruing to the
Social Security Trust Fund surplus in the form of government
IOUs, and entered as negative spending), the overall net
interest spending of the Federal Government is being virtually
eliminated. It declines from $205 billion in 2001 to just $21
billion. in 2011.
Senate Amendment.--The Senate amendment revises the 2001
on-budget levels to $275.5 billion in BA and outlays. For 2002,
it sets forth on-budget levels of $262.7 billion in BA and
outlays. Over ten years, it provides on-budget amounts of
$2,440.3 billion in BA and outlays.
Conference Agreement.--The Conference Agreement revises
the 2001 on-budget levels to $275.5 billion in BA and outlays.
For 2002, it sets forth on-budget levels of $262.2 billion in
BA and outlays. Over ten years, it provides on-budget amounts
of $2,425.7 billion in BA and outlays.
FUNCTION 920: ALLOWANCES
Major Programs in Function.--Under current law, spending
for Function 920, Allowances, will total -$0.5 billion in BA
and -$0.3 billion in outlays for 2001. This function usually
displays the budgetary effects of proposals that cannot be
easily distributed across other budget functions. In the case
of 2001, it reflects the 0.22% across-the-board cut that was
enacted in the Omnibus Consolidated and Emergency Supplemental
Appropriations for Fiscal Year 2001. But CBO could not display
those cuts by account and by function until the Administration
could display how the cuts would be implemented in the release
of the full President's budget request.
In past years, Function 920 has also included total
savings or costs from proposals associated with emergency
spending or proposals contingent on possible future events that
have uncertain chances of occurring. Most recently, in the
Senate amendment and Conference Agreement on budget resolutions
for both 2001 and 2002, the figures expressed in the budget
resolution text (as well as the summary tables) for all other
budget functions reflect the total level of discretionary
spending contemplated by the budget resolution (e.g., as
described in section 203 of the Conference Agreement on the
2002 budget). These levels are higher than the statutory cap on
discretionary spending in place for those years. But because a
budget resolution would be out of order in the Senate if it
contains a level of discretionary spending higher than the
statutory cap, the figures in the budget resolution text in
Function 920 have had to reflect a negative entry that reduces
the net level of discretionary spending from the contemplated
level (as aggregated across all other budget functions) to the
statutory level. The summary tables, however, omit this
negative entry for Function 920 so that their aggregates
reflect the levels ultimately intended by the resolution.
House Resolution.--For discretionary spending, the budget
resolution calls for $5.0 billion in budget authority [BA] and
$1.8 billion in outlays in fiscal year 2002. The 5-year
spending totals are $29.1 billion in BA and $22.4 billion in
outlays; and the 10-year totals are $64.0 billion in BA and
$55.5 billion in outlays. There is no mandatory spending in
this function.
The funds identified constitute primarily a set-aside
fund for unanticipated emergency needs during the fiscal year.
Senate Amendment.--The Senate amendment revises the 2001
levels to $80.5 billion in BA and $80.7 billion in outlays in
2001, reflecting the Senate's adoption of an amendment to
further increase a tax refund for that year. For 2002, the
resolution sets forth -$6.1 billion in BA and -$8.6 billion in
outlays. The resolution provides -$15.9 billion in BA and
-$23.1 billion in outlays over 2002-2010. These figures (as
shown in the summary tables) reflect the effect of 13
amendments adopted by the Senate that sought to suggest an
increase in spending in other functions and that appeared to
``offset'' such increased spending by bookkeeping the same
amount with a negative value in Function 920. These figures do
not include the entry necessary to reduce the overall
discretionary level to the statutory cap.
Conference Agreement.--The Conference Agreement revises
the 2001 levels to $84.5 billion in BA and $84.7 billion in
outlays. For 2002, the resolution provides -$0.7 billion in BA
and -$0.6 billion in outlays. Over 10 years, it provides -$7.2
billion in BA and -$7.7 billion in 23 outlays. Regarding the
language adopted by the Senate amendment (included in the
resolution text setting forth levels for this function) that
directed how the tax rebate for 2001 was to be provided, the
Senate receded to the House.
FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS
Major Programs in Function.--Under current law, receipts
in Function 950, Undistributed Offsetting Receipts, will total
about $46.2 billion (negative BA and outlays) for 2001.
Function 950 includes both on-budget and off-budget components,
but the budget resolution text includes only the on-budget
portion. Both on-budget and total receipts are shown, however,
in the summary tables contained in this Conference Agreement.
This function records offsetting receipts (receipts, not
federal revenues or taxes, that the budget shows as offsets to
spending programs) that are too large to record in other budget
functions. Such receipts are either intrabudgetary (a payment
from one federal agency to another, such as agency payments to
the retirement trust funds) or proprietary (a payment from the
public for some type of business transaction with the
government). The main types of receipts recorded as
``undistributed'' in this function are: the payments federal
agencies make to retirement trust funds for their employees,
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 the public property
or resources, such as the electromagnetic spectrum.
House Resolution.--The resolution calls for -$42.3
billion in budget authority [BA] and outlays in fiscal year
2002, a decrease of 10.6 percent in BA compared with fiscal
year 2001, (or an increase of 10.6 percent in receipts compared
with fiscal year 2001). The 5-year function totals are -$239.8
billion in BA and outlays; and the 10-year totals are -$492.3
billion in BA and outlays.
These totals comprise entirely of mandatory spending.
There is no discretionary spending in this function.
The resolution does not assume lease bonuses from the
Arctic National Wildlife Refuge or an analog spectrum license
fee or other spectrum offsets. It also assumes permanent
extension of the Balanced Budget Act [BBA] provision that
increased, by 1.51 percentage points, Federal agency
contributions to the Civil Service Retirement and Disability
Trust Fund [CSRDF] on behalf of their CSRS-participant
employees. That provision had been scheduled to sunset after
fiscal year 2002.
Senate Amendment.--The Senate amendment does not revise
the 2001 levels. For 2002, the resolution provides -$38.8
billion in BA and outlays. Over 10 years, the resolution
provides -$495.7 billion in BA and outlays. The Senate
amendment is the same as the House resolution, except that it
reflects both the President's proposals to delay certain
spectrum auctions and to impose a fee on broadcasters using
spectrum channels for analog broadcasts to encourage the
transition to digital television.
Conference Agreement.--The Conference Agreement does not
revise the 2001 levels. For 2002, the resolution provides
-$38.8 billion in BA and outlays. Over 10 years, it provides
-$494.1billion in BA and outlays. The conferees agree to the
President's proposal to delay certain spectrum auctions that was
assumed in the Senate amendment, but do not agree to the President's
proposal for an analog lease fee.
Revenues
Federal revenues are taxes and other collections from the
public that result from the government's sovereign or
governmental powers. Federal revenues include individual income
taxes, corporate income taxes, social insurance taxes, excise
taxes, estate and gift taxes, customs duties and miscellaneous
receipts (which include deposits of earnings by the Federal
Reserve System, fines, penalties, fees for regulatory services,
and others).
Under current law, federal tax collections are projected
to total $28 trillion over the next ten years. This year, total
revenues are projected to equal 20.7 percent of GDP, slightly
below the World War II record level of 20.9 percent. Over the
projection period 2002-2011, under current law, total revenues
are projected to average 20.3 percent of GDP, far above
historical averages for any time period, including times of
war.
House Resolution.--The House resolution provides for
$1.62 trillion in tax reduction over the next 10 years. This
level would accommodate the President's priority tax cut
proposals: reducing marginal tax rates, doubling the per-child
tax credit; providing relief from the marriage penalty, and
providing death tax relief. It also provides for additional tax
reduction, subject to the discretion of the Committee on Ways
and Means. Such measures might include charitable deduction
expansion; refundable tax credits for private health insurance;
Education Savings Account expansion and other education
provisions; Individual Retirement Account [IRA] increases and
other pension reform; and permanent extension of the research
and development [R&D] tax credit. (The refundable elements of
the President's tax proposals, which are treated as spending,
appear in the functional areas to which they apply.) It also
assumes, but does not reconcile, the revenue effect of a
proposed reduction in fees levied by the Securities and
Exchange Commission, and a requirement that the Federal Reserve
pay interest on deposits at the Reserve. The resolution also
establishes a reserve fund for further tax reduction should the
Congressional Budget Office's summer update indicate additional
non-Social Security surpluses. The reserve fund could allow for
measures such as extension of Medical Savings Accounts, repeal
of transportation deficit reduction fuel taxes, and reduction
of the capital gains rate.
Senate Amendment.--The Senate amendment revises the 2001
on-budget revenue level to $1,630.3 billion. It sets forth on-
budget revenues of $1,644.8 billion in 2002, and $20,007.1
billion over the ten years 2002-2011. The Senate amendment
assumes a tax reduction, relative to the CBO baseline, of
$1,188.1 billion over the period 2002-2011, about $450 billion
less than the tax relief assumed in the House resolution. The
Senate amendment includes an allowance (in Function 920) for a
surplus refund of up to $85 billion in 2001. The refund
represents about 88 percent of the $96 billion non-Social
Security, non-Hospital Insurance surplus projected under
current law for 2001. The tax relief assumed in the Senate
amendment represents just four percent of all projected
revenues over the next ten years, and less than one percent of
GDP over the next ten years.
Conference Agreement.--The Conference Agreement includes
language for reconciliation of tax relief including a surplus
refund of $1,350 billion over the period 2001-2011. In
addition, the Conference Agreement accepts the House position
to assume a one-year extension of tax provisions expiring in
2001, legislation to reduce SEC fees, and legislation to permit
the Federal Reserve System to pay interest on reserve balances.
These three provisions would not be reconciled, and are assumed
to reduce revenues by $19 billion over ten years. The total
amount of tax relief, surplus refund, and other revenue changes
assumed in the Conference Agreement, both reconciled and non-
reconciled, is $1,369 billion over the 2001-2011 period.
Debt Levels
Debt held by the public peaked at $3.773 trillion in
1997. At the end of 2001, debt held by the public is projected
to be $3.243 trillion, $530 billion lower than just four years
ago. This is a reduction of 14 percent from peak levels.
The table on the following page shows the levels of debt
held by the public resulting from the policies assumed in the
Conference Agreement. The policies assumed in the Conference
Agreement result in a reduction in debt in every year through
2011 and total debt reduction of $2.425 trillion from the end
of 2001 through the end of 2011. Debt held by the public falls
to 4.8 percent of GDP, its lowest level since 1916, prior to
World War I.
The Conference Agreement proposals result in retiring the
maximum amount of public debt that can reasonably be retired.
Under the budget resolution, the debt remaining in 2010 and
2011 is considered (by CBO's estimates) to be the minimum debt
level. It consists mostly of marketable bonds that will not
have matured and that will be too expensive to buy back,
savings bonds, and special bonds for State and local
governments.
2002 Budget Resolution
[$ billions]
Debt Held by the Public: 2001--3,243.2; 2002--3,037.9;
2003--2,810.7; 2004--2,563.6; 2005--2,303.1; 2006--2,022.5;
2007--1,702.9; 2008--1,350.0; 2009--947.3; 2010--878.0; 2011--
818.0.
Reconciliation Instructions
Under section 310(a) of the 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 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 4 provides for five different reconciliation
bills. It contains directives to the Ways and Means Committee
to report three tax-only bills to the floor by May 2nd, May
23rd, and June 20th of fiscal year 2001. Additional directives
to the Ways and Means and the Energy and Commerce Committees
are designed to allow those committees to reform the Medicare
program and provide a prescription drug benefit. The Medicare-
related legislation must be submitted to the House Budget
Committee no later than July 24, 2001. An additional omnibus
bill will be composed of submissions from six different
committees that will contain both spending and revenue changes.
These Committees are required to submit their recommendations
to the Budget Committee by September 11, 2001.
Senate amendment
The Senate amendment provides a reconciliation
instruction to the Senate Committee on Finance to reduce
revenues for the period of fiscal years 2001 through 2011 by
not more than the amount of revenue reductions set out in the
revenue aggregates in the resolution. It also instructs the
Committee on Finance to increase outlays by not more than $60
billion for the period of fiscal years 2001 through 2011. This
reconciliation instruction was added by an amendment offered by
Senator Domenici. The reduction in the revenue aggregates plus
the $60 billion in outlays would permit up to $1.248 trillion
in ``tax relief'' over this 11-year period.
Conference agreement
The Conference Agreement provides a reconciliation
instruction to the House Committee on Ways and Means and to the
Senate Committee on Finance to report, by May 18, 2001,
legislation to reduce revenues by not more than $1,250 billion
for the period of fiscal years 2001 through 2011. It also
instructs the House Committee on Ways and Means and the Senate
Committee on Finance to report, by May 18, 2001, legislation to
increase outlays by not more than $100 billion for the period
of fiscal years 2001 through 2011. The total reconciliation
instruction to both the House Committee on Ways and Means and
the Senate Committee on Finance is for $1,350 billion including
a $100 billion economic stimulus package to be distributed over
the next two years.
Allocations
As required in section 302 of the Budget Act, the joint
statement of the managers includes an allocation, based on the
Conference Agreement, of total budget authority and total
budget outlays among each of the appropriate House and Senate
committees.
The allocations are as follows:
The Conferees agree that it would be ideal to enforce
this resolution using CBO's best cost estimates based on its
most recent baseline. Typically, CBO prepares a preliminary
baseline published in January and then a revised baseline in
March that incorporates information CBO learns in reestimating
the President's budget, which is usually released in early
February. Almost always, the budget resolution is based on
CBO's revised baseline. This year, however, the President's
budget was not released until April 9, so CBO will not release
its full analysis of the President's budget and accompanying
revised baseline until May 18. Thus, this budget resolution is
still based on CBO's preliminary baseline. Therefore the
Conferees intend that the Chairmen of the Committees on the
Budget may make necessary adjustments only after CBO publishes
its analysis of the President's budgetary proposals for fiscal
year 2002 including its revised baseline and only to reflect
the revised baseline, and may use CBO's estimates (that are
consistent with the revised baseline) for purposes of enforcing
the budget resolution.
The Conferees also agree that transfers from non-
budgetary governmental entities such as the Federal Reserve
Banks shall not be used to offset increased on-budget spending
when such transfers produce no real budgetary effects. It has
long been the view of both Committees on the Budget that
transfers of Federal Reserve surpluses to the Treasury are not
valid offsets for increased spending. Nonetheless, such
transfers have been legislated in the past--as recently as the
fall of 1999. The Conferees agree to a scoring rule to make
clear that such transfers will not be taken into account when
determining compliance with the various Budget Act and Senate
paygo points of order.
Rulemaking and Budgetary Procedures
enforcement procedures
The Budget Act contains procedures for the enforcement of
the levels contained therein. In addition, many budget
resolutions have contained additional enforcement procedures.
In general enforcement is accomplished by setting forth new
scoring rules or new points of order which can be raised by any
member of either House. Subtitle A of title II of the
Conference Agreement contains 4 such provisions.
House resolution
Section 5: Reserve Fund for Emergencies
Section 5 modifies Congressional procedures related to
emergency spending in fiscal year 2001. It establishes a
separate allocation to the Appropriations Committee for
emergencies of $5.6 billion. In lieu of the current practice of
automatically increasing the appropriate levels in the budget
resolution for designated emergencies, it permits the
Appropriations Committee to make such adjustments only if
emergency-designated appropriations meet a statutory definition
of an emergency and key disaster accounts have been fully
funded.
Section 13: Restrictions on Advance Appropriations
Section 13 establishes a scoring rule and budgetary
control designed to limit advance appropriations. It provides
that for purposes of enforcing the budget resolution, advance
appropriations are to be scored in the year in which they are
enacted. Under current scorekeeping conventions, appropriations
are scored in the year in which they are available for
obligation. An exception is provided for programs for which
advance appropriations do not exceed a specified level that
will be identified in the joint statement of managers.
Section 12: Compliance with Section 13301
Section 12 provides the House the authority to include
the administrative expenses related to Social Security in the
302(a) allocation to the Appropriations Committee. As part of
an agreement between the House and Senate Budget Committees in
2000, the administrative expenses of the Social Security trust
funds are no longer included in the budget resolution. The
Budget Committees, however, continue to include these expenses
in the 302(a) allocations of the Appropriations Committee
because they are controlled through the annual appropriations
process. Absent the authority provided under section 12, these
expenses could not be included in the 302(a) allocations
because the allocations must be consistent with the amounts set
forth in the budget resolution.
Senate amendment
Section 201: Restrictions on Advance Appropriations
The Senate amendment contains a new scoring rule with
respect to advance appropriations. The new rule provides that
both the BA and the outlays for an advance appropriation will
be scored for the budget year regardless of the fiscal year in
which the funds actually become available for obligation. An
exception is provided for advance appropriations which provide
full funding for a capital project. The exception is intended
to apply to the federal buildings fund within the General
Services Administration and not as a means of providing
incremental funding to other federal acquisitions.
Section 202: Mechanism for implementing increase of fiscal
year 2002 discretionary spending limits
The Senate amendment contains a mechanism virtually
identical to that which was included in section 206 of the
fiscal year 2001 budget resolution. The Senate amendment
provides the Chairman of the Senate Committee on the Budget the
authority to increase the section 302(a) allocation to the
Committee on Appropriations after the statutory discretionary
spending limit for fiscal year 2002 (set forth in section 251
of the Balanced Budget and Emergency Deficit Control Act of
1985) has been amended. Such adjustment is limited to the
levels set forth in the mechanism. As passed the Senate, the
allocation may be adjusted up to $689.2 billion in BA and
$666.5 in outlays for the general discretionary category, $28.5
billion in outlays for the highway category, $5.3 billion in
outlays for the mass transit category, and $1.76 billion in BA
and $1.38 in outlays for the conservation category. Note that
with an exception for a necessary adjustment within Function
920 (to bring the Senate-passed resolution in compliance with
section 312(b) of the Budget Act) these numbers are intended to
reflect the sum of the functional totals. However due to
mathematical inconsistency within some of the amendments
adopted during the Senate debate of the resolution, this may
not be the case.
Section 207: Limitation on consideration of amendments
under reconciliation and a budget resolution
The Senate amendment contains language which modifies the
time for debate on budget resolutions, reconciliation bills,
and amendments thereto. The language was added by an amendment
offered by Senator Byrd. The Senate amendment modifies the
procedural rules as follows: (1) limits overall debate time
(including the offering of amendments) for both budget
resolutions and reconciliation bills to 50 hours (current rules
permit 50 hours for budget resolutions and 20 for
reconciliation bills); (2) eliminates the non-debatable motion
to reduce the time, so that time may only be reduced by
unanimous consent; (3) reduces time on 1st degree amendments
from 2 hours to 1 hour, and reduce time on amendments to
amendments (and debatable motions and appeals) from 1 hour to
30 minutes; (4) requires that 1st degree amendments be offered
or filed with the Clerk prior to the end of the 10th hour of
consideration and that 2nd degree amendments be offered or
filed with the Clerk prior to the end of the 20th hour of
consideration; (5) requires that after 40 hours of
consideration, the resolution be set aside for 1 calendar day;
(6) provides that waiver or appeal from these new rules
requires 60 votes in the Senate.
Conference Agreement
Section 201: Restrictions on Advance Appropriations--House
Section 201 of the Conference Agreement adopts a
limitation on advance appropriations similar to the approach
taken in last year's budget resolution. Unlike last year's
resolution, the same rule will govern in the House of
Representatives. The Conference Agreement prohibits any advance
appropriation for 2003 and any year thereafter with two
exceptions: (1) advance appropriations may be provided for the
accounts in the appropriations bills listed below, provided
that their sum does not exceed $23.159 billion in budget
authority for 2003 and (2) advance appropriations may be
provided for the Corporation for Public Broadcasting.
Accounts Identified for Advance Appropriations:
Commerce, Justice, State
Patent and Trademark Office (13 1006 01 376)
Legal Activities and U.S. Marshals, Antitrust Division (15
0319 01 752)
U.S. Trustee System (15 5073 02 752)
Federal Trade Commission (29 0100 01 376)
Interior
Elk Hills (89 5428 02 271)
Labor, Health and Human Services, Education
Employment and Training Administration (16 0174 01 504)
Health Resources (75 0350 01 551)
Low Income Home Energy Assistance Program (75 1502 01 609)
Child Care Development Block Grant (75 1515 01 609)
Elementary and Secondary Education [reading excellence] (91
0011 01 501)
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
Payment to Postal Service (18 1001 01 372)
Federal Building Fund (47 4542 04 804)
Veterans, Housing and Urban Development
Section 8 Renewals (86 0319 01 604)
The Conference Agreement adopts the definition of
``advance appropriation'' that was used in section 203(b)(2) of
last year's budget resolution (which was the provision
applicable in the House of Representatives). Both the overall
cap for fiscal year 2002 (with the specified accounts) and the
prohibition (and single exception) for subsequent fiscal years
will be enforced in the House by points of order. This
limitation is enforced by points of order, which may be raised
against advance appropriations not falling within the
exception. The effect of a point of order under this section,
if sustained by the Chair, is to cause the appropriation(s) to
be stricken from the bill or joint resolution. The bill itself,
however, continues to be considered.
Section 202: Restrictions on Advance Appropriations--Senate
Section 201(a) of the Conference Agreement adopts a
limitation on advance appropriations similar to the approach
taken in last year's budget resolution. The Conference
Agreement prohibits any advance appropriation for 2003 and any
year thereafter with two exceptions: (1) advance appropriations
may be provided for the accounts in the appropriation bills
listed below, provided that their sum does not exceed $23.159
billion in budget authority for 2003 and (2) advance
appropriations may be provided for the Corporation for Public
Broadcasting.
Accounts Identified for Advance Appropriations:
Commerce, Justice, State
Patent and Trademark Office (13 1006 01 376)
Legal Activities and U.S. Marshals, Antitrust Division (15
0319 01 752)
U.S. Trustee System (15 5073 02 752)
Federal Trade Commission (29 0100 01 376)
Interior
Elk Hills (89 5428 02 271)
Labor, Health and Human Services, Education
Employment and Training Administration (16 0174 01 504)
Health Resources (75 0350 01 551)
Low Income Home Energy Assistance Program (75 1502 01 609)
Child Care Development Block Grant (75 1515 01 609)
Elementary and Secondary Education [reading excellence] (91
0011 01 501)
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
Payment to Postal Service (18 1001 01 372)
Federal Building Fund (47 4542 04 804)
Veterans, Housing and Urban Development
Section 8 Renewals (86 0319 01 604)
The Conference Agreement adopts the definition of
``advance appropriation'' that was used in section 203(b)(2) of
last year's budget resolution (which was the provision
applicable in the Senate). Both the overall cap on advanced
appropriations for fiscal year 2002 for the specified accounts
and the prohibition for subsequent fiscal years will be
enforced in the Senate by a 60-vote point of order. The effect
of a point of order under this section, if sustained by the
Chair, is to cause the appropriation(s) to be stricken from the
bill or joint resolution. The bill itself, however, continues
to be considered.
Section 203: Mechanism for Implementing Increase of Fiscal
Year 2002 Discretionary Spending Limits
Section 203 of the Conference Agreement retains the
language from section 202 of the Senate amendment. Virtually
identical language was included in section 206 of last year's
budget resolution. It provides the Chairman of the Senate
Committee on the Budget the authority to increase the section
302(a) allocation to the Committee on Appropriations after the
statutory discretionary spending limit for fiscal year 2002
(set forth in section 251 of the Balanced Budget and Emergency
Deficit Control Act of 1985) has been amended. The Conference
Agreement permits the allocation to be adjusted up to $659.850
billion in BA and $647.780 in outlays for the general
discretionary category, $28.489 billion in outlays for the
highway category, $5,275 billion in outlays for the mass
transit category, and $1.760 billion in BA and $1.232 in
outlays for the conservation category. Note that with an
exception for a necessary adjustment within Function 920 (to
bring the Conference Agreement in to compliance with section
312(b) of the Budget Act), the functional totals of this
Conference Agreement reflect a level of discretionary spending
equal to the levels provided in this section.
Section 203 of the Conference Agreement also includes a
mechanism for establishing a budget authority firewall in the
Senate with respect to defense and nondefense discretionary
spending. This firewall would be enforced by a 60-vote point of
order only after the section 251 discretionary spending limit
for 2002 has been amended. Similar language was included in
section 207 of last year's budget resolution. The Conferees
feel that a firewall is necessary to add credibility to the
total level of discretionary spending provided for in this
resolution given the additional authority set out in section
218 of the resolution to increase the section 302(a) allocation
to the Committee on Appropriations for additional defense
spending. The Conferees stress the need for the President to
transmit to Congress a amendment requesting additional
resources for defense after the completion of the President's
National Defense Review prior to the Chairman of the Budget
Committee considering any increase in the 302(a) allocation
pursuant to section 218.
Section 204: Compliance with Section 13301 of the Budget
Enforcement Act of 1990
Section 204 of the Conference Agreement retains the
language of section 12 of the House Resolution regarding the
budgetary treatment in the House of discretionary spending for
the Social Security Administration. Similar language was
included in section 231 of last year's resolution.
Other issues
The Conference Agreement does not include any language
reflecting section 206 of the Senate amendment which provided
limitations on consideration of amendments to budget
resolutions and reconciliation bills in the Senate.
Senate Pay-as-you-go Point of Order
For convenience, and in keeping with previous years, the
text of the Senate's current Pay-go point of order (see Section
207 of H. Con. Res. 68 (106th Cong. 1st Sess.) and the starting
balances for the Senate pay-go scorecard are set out below. The
starting balance represents the Congressional Budget Office's
baseline estimate of the on-budget surpluses over the ten-year
period. The Conferees note that the levels of spending and
revenue reductions set out in the Conference Agreement, if
enacted, would not result in a violation of the Senate pay-as-
you-go point of order.
SEC. . PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.
(a) Purposes.--The Senate declares that it is essential
to--
(1) ensure continued compliance with the balanced
budget plan set forth in this resolution; and
(2) continue the pay-as-you-go enforcement system.
(b) Point of Order.--
(1) In general.--It shall not be in order in the
Senate to consider any direct spending or revenue
legislation that would increase the 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 the purposes of
this subsection the term ``applicable time period''
means any one of the three following time 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 by
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
affect the full funding of, and continuation
of, the deposit insurance guarantee commitment
in effect on the date of enactment of the
Budget Enforcement Act of 1990.
(5) Baseline.--Estimates prepared pursuant to this
section shall--
(A) use the baseline used for the most
recently adopted concurrent resolution on the
budget, and
(B) be calculated under the requirements of
subsection (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 cause an
on-budget deficit when taken individually, then it must
also increase the on-budget deficit or causes 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 the direct
spending or revenue effects resulting from legislation
enacted pursuant to the reconciliation instruction
included in that concurrent resolution on the budget
shall not be available.
(c) Waiver.--This section may be waived or suspended in
the Senate only by the affirmative vote of three-fifths of the
Members, duly chosen and sworn.
(d) Appeals.--Appeals in the Senate from the decisions of
the Chair relating to any provision of this section shall be
limited to 1 hour, to be equally divided between, and
controlled by, the appellant and the manager of the bill or
joint resolution, as the case may be. An affirmative vote of
three-fifths of the Members of the Senate, duly chosen and
sworn, shall be required in the Senate to sustain an appeal of
the ruling of the Chair on a point of order raised under this
section.
(e) Determination of Budget Levels.--For purposes of this
section, the levels of new budget authority, outlays, and
revenues for a fiscal year shall be determined on the basis of
estimates made by the Committee on the Budget of the Senate.
(f) Conforming Amendment.--Section 23 of H. Con. Res. 218
(103rd Cong.) is repealed.
(g) Sunset.--Subsections (a) through (e) of this section
shall expire September 30, 2002.
2002 Budget Resolution
[$ billions]
Baseline on-budget surpluses: 2002--142.097; 2003--
171.286; 2004--195.686; 2005--211.605; 2006--266.799; 2007--
316.203; 2008--359.195; 2009--416.669; 2010--484.265; 2011--
558.187.
Reserve Funds
Reserve funds are special procedures which permit the
consideration of specified legislation by making available the
resources that are assumed within the aggregate levels of the
budget resolution, but are not initially allocated to the
appropriate committee of jurisdiction. In general, such
provisions provide that upon the reporting of the legislation
by the appropriate committee, the Chairmen of the Committees on
the Budget may adjust the appropriate allocations to
accommodate the legislation provided that all the terms of the
reserve fund have been satisfied. The Chairmen intend to make
reserve fund adjustments only for legislation reported by the
appropriate committee. Subtitle B of Title II of the Conference
Agreement contains nine reserve funds.
House resolution
Section 6: Strategic Reserve
Section 6 establishes a reserve fund for Department of
Defense spending following the President's National Defense
Review and a potential reauthorization of the Federal
Agriculture Improvement Act of 1996. It could also accommodate
other legislation. In order to be eligible for adjustments
under this section, the legislation must be reported before
July 11, 2001.
Section 7: Supplemental Reserve for Medicare
Section 7 establishes a reserve fund to accommodate a
potentially more expensive Medicare bill than was reflected in
the budget resolution. The Budget Committee chairman is
authorized to make the adjustment for reconciliation
legislation that provides for Medicare reform and prescription
drug coverage. The Budget Committee chairman may increase the
302(a) allocations to the appropriate committees of
jurisdiction by the amount of the Congressional Budget Office
[CBO] reestimate of the cost of the President's Medicare plan
or an alternative plan submitted by the Ways and Means and
Commerce Committees. As a further limit on the cost of the
bill, the adjustment under this section may not cause the on-
budget surplus in the budget resolution to be less than $36
billion in fiscal year 2002 and comparable levels in fiscal
years 2003 through 2010.
Section 8: Reserve for FY 2001
Section 8 establishes a reserve fund for fiscal year
2001. The Chairman of the Budget Committee is authorized to
make adjustments for Department of Defense shortfalls,
emergency agricultural assistance, and other measures. It also
limits the amount of the adjustments to the amount the bill
exceeds the Committee's allocation. The adjustments may also
not cause the on-budget surplus to be less than $29 billion in
fiscal year 2001.
Section 9: Reserve for Education
Section 9 establishes a reserve fund to allow additional
spending for programs authorized by the Individuals with
Disabilities Education Act (IDEA) in fiscal year 2001. It
permits the Budget Committee chairman to increase the
allocation when an appropriation increases spending for IDEA
above the baseline level of $6.37 billion. The adjustment may
not exceed $1.25 billion.
Section 10: Reserve for Additional Tax Cuts and Debt
Reduction
Section 10 permits the budget resolution to be adjusted
to accommodate a larger tax cut or debt reduction if the
surplus estimates increase in the Congressional Budget Office
update of its budget and economic forecast for any fiscal years
2001 through 2011. If the estimate of the on-budget surplus
increases, the chairman of the Budget Committee may increase
the tax cut or reduce the debt levels by up to the amount of
the increase in the surplus.
Senate amendment
Section 203: Reserve fund for prescription drugs and
Medicare reform in the Senate
The Senate amendment contains language creating a reserve
fund for Medicare reform and a prescription drug benefit. This
reserve fund replaced the language in the initial substitute
amendment offered by Senator Domenici and was added by an
amendment offered by Senator Grassley. The Senate amendment
permits budget resolution levels and committee allocation to be
adjusted for legislation reported from Senate Committee on
Finance that reforms medicare and improves access to
prescription drugs for beneficiaries. The adjustments may not
exceed the Congressional Budget Offices's cost estimate of
either a plan submitted by the President or a comparable plan
submitted by the Chairman of the Committee on Finance and in no
case may total spending exceed $300 billion for the period of
fiscal years 2002 through 2011. Note that the aggregates and
function levels in the Senate amendment assume only $153
billion (of the potential $300 billion) over ten years.
Section 206: Reserve fund for Medicare payments to home
health agencies
The Senate amendment contains language creating a reserve
fund to restore Medicare payments to home health agencies. This
reserve fund was added by an amendment offered by Senator
Collins. The Senate amendment permits budget resolution levels
and committee allocation to be adjusted for legislation
reported from Senate Committee on Finance that repeals the
scheduled 15% reduction in home health payments. Adjustments
may not exceed $4 billion for the period of fiscal years 2002
through 2006 and $13.7 billion for the period of fiscal years
2002 through 2011. In addition, no adjustments may be made if
the cost of such legislation, taken together with all
previously enacted legislation would reduce the on-budget
surplus before the level of the Medicare HI Trust Fund surplus
for any fiscal year covered by this budget resolution. Note
that the function levels and aggregates in the Senate amendment
assume the reductions would have gone into effect.
Section 208: Reserve fund for the payment of retired pay
and compensation to disabled military retirees
The Senate amendment contains language creating a reserve
fund to provide for the payment of retired pay and veterans'
disability benefits to disabled military retirees. This reserve
fund was added by an amendment offered by Senator Reid. The
Senate amendment permits budget resolution levels and committee
allocation to be adjusted for legislation reported from Senate
Committee on Armed Services (and the appropriate committee of
the House of Representatives) that funds the payment of full
retired pay and veterans' disability benefits to disabled
military retirees. The amendment does not, however, make any
provision for the additional $14.4 billion in discretionary
spending that the Congressional Budget Office has estimated
would also be required to fully fund these benefits.
Adjustments may not exceed $2.9 billion for fiscal year 2002 or
$40 billion for the period of fiscal years 2002 through 2011.
In addition, no adjustment may be made if the sum of the cost
of this legislation taken together with previously enacted
legislation would reduce the level of the Medicare Hospital
Insurance trust fund for any fiscal year covered by the budget
resolution.
Section 209: Reserve fund for refundable tax credits
The Senate amendment contains language which in effect
provides ``fungibility'' between outlays and revenues in a
reconciliation tax legislation. This provision was added by an
amendment offered by Senator Bingaman. The Senate amendment
permits budget resolution levels, committee allocation, and
reconciliation instruction to be adjusted for legislation
reported from the Senate Committee on Finance that provides
refundable tax credits. Adjustments are limited such that the
sum of the spending increase and revenue reductions must not
exceed the total amount of the reconciliation instruction. This
will have the same effect as the ``fungibility'' language set
out in section 310(c) of the Budget Act--and is superfluous in
this case since the reconciliation instruction in the Senate
amendment to Senate Finance contains an outlay component.
Section 212: Reserve fund for Family Opportunity Act
The Senate amendment contains a reserve fund to
facilitate the consideration of the Family Opportunity Act in
the Senate. This reserve fund was added by an amendment offered
by Senator Grassley. The Senate amendment permits budget
resolution levels and committee allocation to be adjusted for
legislation reported from Senate Committee on Finance that
expands Medicaid coverage for children with special needs to
permit their parents to purchase such coverage. Adjustments may
not exceed $200 million for fiscal year 2002 or $7.9 billion
for the period of fiscal years 2002 through 2011. In addition,
no adjustment may be made if the sum of the cost of this
legislation taken together with previously enacted legislation
would reduce the level of the Medicare Hospital Insurance trust
fund for any fiscal year covered by the budget resolution.
Section 213: Reserve fund for Veterans' education
The Senate amendment contains a reserve fund to provide
additional resources for veterans' education benefits. This
reserve fund was added by an amendment offered by Senator
Collins. The Senate amendment permits budget resolution levels
and committee allocation to be adjusted for legislation
reported from Senate Committee on Veterans' Affairs (and the
appropriate committee of the House of Representatives) that
increases the basic monthly benefit under the G.I. bill.
Adjustments may not exceed $775 million for fiscal year 2002 or
$4.3 billion for the period of fiscal years 2002 through 2006
or $9.9 billion for the period of fiscal years 2002 through
2011. In addition, no adjustment may be made if the sum of the
cost of this legislation taken together with previously enacted
legislation would reduce the level of the Medicare Hospital
Insurance trust fund for any fiscal year covered by the budget
resolution.
Section 214: Reserve fund for payments in lieu of taxes
The Senate amendment contains a reserve fund to provide
additional resources for payments in lieu of taxes and for
refuge revenue sharing. This reserve fund was added by an
amendment offered by Senator Bingaman. The Senate amendment
permits budget resolution levels and committee allocation to be
adjusted for legislation reported from Senate Committee on
Energy and Natural Resources that fully funds payments in lieu
of taxes for entitlement lands under chapter 69 of title 31 of
the U.S. Code. Adjustments may not exceed $353 million for
fiscal year 2002 or $3.709 billion for the period of fiscal
years 2002 through 2011. In addition, no adjustment may be made
if the sum of the cost of this legislation taken together with
previously enacted legislation would reduce the level of the
Medicare Hospital Insurance trust fund for any fiscal year
covered by the budget resolution.
Conference agreement
Section 211: Medicare Reserve Fund
Section 211 of the Conference Agreement is in two parts.
Section (a) retains the language from the House and Senate
resolutions to accommodate Medicare reform and prescription
drug legislation. The language is modeled on section 203 of the
Senate Amendment. The aggregate level of spending for such
legislation has been assumed within the Function 570 levels and
the aggregates in the Conference Agreement, but will not be
allocated to the committees. The Conference Agreement applies
in both the House of Representatives and the Senate and permits
the appropriate Budget Committee chairman to adjust committee
allocations and other appropriate budgetary aggregates and
allocations for legislation which is reported from the Senate
Finance Committee and the House Committee on Ways and Means or
the Committee on Energy and Commerce if the committee report
legislation providing for Medicare reform and a prescription
drug benefit provided that the cost of such legislation does
not exceed $59.1 billion in BA and outlays for the period of
fiscal years 2003 through 2006 and $300 billion in BA and
outlays for the period of fiscal years 2003 through 2011. The
Conferees note that the authority granted under this section
does not permit the Chairman of the Committee on the Budget to
make any adjustments for floor amendments offered to unrelated
legislation.
The Conferees note that it would be appropriate for the
cost of such legislation (but no other legislation) to be
funded in whole or in part from the surpluses of the Hospital
Insurance Trust Fund.
Section 211(b) of the Conference Agreement retains the
language of section 206 of the Senate Amendment which provides
a reserve fund for legislation regarding payments under
Medicare to home health providers--with a modification. The
Conference Agreement applies in both the House of
Representatives and the Senate and permits the appropriate
Budget Committee chairman to adjust committee allocations and
other appropriate budgetary aggregates and allocations for
legislation which is reported (or for amendments thereto or
conference report thereon) from the Senate Finance Committee
and the House Committee on Ways and Means or the Committee on
Energy and Commerce if the committees report legislation that
repeals the scheduled 15% reduction in home health payments.
The aggregate level of spending for such legislation has been
assumed within the Function 570 levels and the aggregates in
the Conference Agreement, but will not be allocated to the
committees. Adjustments may not exceed $4 billion in BA and
outlays for the period of fiscal years 2003 through 2006 and
$13.7 billion in BA and outlays for the period of fiscal years
2003 through 2011. The Conferees note that the authority
granted under this section does not permit the Chairman of the
Committee on the Budget to make any adjustments for floor
amendments offered to unrelated legislation. Subsection (b)
provides, however, that no adjustments may be made if the cost
of such legislation, taken together with all previously enacted
legislation, would reduce the surplus below the level of the
Medicare HI Trust Fund surplus for any fiscal year covered by
this budget resolution.
Section 212: Reserve Fund for the Family Opportunity Act
Section 212 of the Conference Agreement retains the
language of section 212 of the Senate Amendment which provides
a reserve fund for legislation to enable the expansion of
Medicaid coverage for children with special needs to permit
their parents to purchase such coverage--with a modification.
The Conference Agreement applies in both the House of
Representatives and the Senate and permits the appropriate
Budget Committee chairman to adjust committee allocations and
other appropriate budgetary aggregates and allocations for
legislation which is reported (and amendments thereto, or any
conference report thereon) from the Senate Finance Committee
and the House Committee on Ways and Means or the Committee on
Energy and Commerce if the committees report legislation that
expands Medicaid coverage for children with special needs to
permit their parents to purchase such coverage. Adjustments may
not exceed $227 million in BA and $180 million in outlays for
fiscal year 2002, $3.035 billion in BA and $2.724 billion in
outlays for the period of fiscal years 2002 through 2006 and
$8.337 billion in BA and $7.867 billion in outlays for the
period of fiscal years 2002 through 2011.
The Conferees note that the authority granted under this
section does not permit the Chairman of the Committee on the
Budget to make any adjustments for floor amendments offered to
unrelated legislation. Note that the aggregate level of
spending for such legislation has been assumed within the
Function 550 levels and the aggregates in the Conference
Agreement, but will not be allocated to the committees. The
Conference Agreement provides, however, that no adjustments may
be made if the cost of such legislation, taken together with
all previously enacted legislation would reduce the surplus
below the level of the Medicare HI Trust Fund surplus for any
fiscal year covered by this budget resolution.
Section 213: Reserve Fund for Agriculture
Section 213 of the Conference Agreement includes a new
reserve fund for legislation reauthorizing the Federal
Agriculture Improvement and Reform (FAIR) Act of 1996, Title I
of such act, and other appropriate agriculture production
legislation. Funding for agriculture was assumed in the budget
totals but not the allocation. The Conference Agreement applies
in both the House of Representatives and the Senate and permits
the appropriate Budget Committee chairman to adjust committee
allocations and other appropriate budgetary aggregates and
allocations for legislation which is reported (and amendments
thereto, or any conference report thereon) from the Senate
Committee on Agriculture, Nutrition and Forestry and the House
Committee on Agriculture if the committees report such
legislation. Adjustments may not exceed $66.15 billion in BA
and outlays for the period of fiscal years 2003 through 2011.
The Conferees note that the authority granted under this
section does not permit the Chairman of the Committee on the
Budget to make any adjustments for floor amendments offered to
unrelated legislation. Note that the aggregate level of
spending for such legislation has been assumed within the
levels for Function 300 and 350 and within the aggregates in
the Conference Agreement, but will not be allocated to the
committees. The Conference Agreement provides however that no
adjustments may be made if the cost of such legislation, taken
together with all previously enacted legislation would reduce
the surplus below the level of the Medicare HI Trust Fund
surplus for any fiscal year covered by this budget resolution.
Section 214: Reserve Fund for Additional Tax Cuts and Debt
Reduction
Section 214 of the Conference Agreement retains the
language of Section 10 of the House Resolution, which provides
a mechanism by which the assumed tax cuts or debt levels may be
adjusted by an increase in CBO's mid session update of the
surplus. Similar language was included in section 213 of last
year's budget resolution.
Section 215: Technical Reserve Fund for Student Loans
Section 215 of the Conference Agreement includes a new
technical reserve for legislation that permanently retains the
interest rate schedule currently in effect for student loans
and that repeals the switch to a replacement interest rate
structure scheduled to occur under current law on July 1, 2003.
This technical reserve would permit extension of the
overwhelmingly bipartisan agreement reached in the Higher
Education Amendments of 1998 to support the interest rate
structure of the student loan programs as it operates today.
The Conference Agreement permits the appropriate Budget
Committee chairman to adjust committee allocations and other
appropriate budgetary aggregates and allocations for
legislation(reported from the Senate Committee on Health,
Education, Labor and Pensions and within the jurisdiction of House
Committee on Education and the Workforce) that repeals an provision
(from 1993) that, if left in place, would dismantle the existing
interest rate structure for student loans starting July 1, 2003. The
adjustment may not exceed $110 million in BA and $100 million in
outlays for the combined period 2001-2002, nor may it exceed $3.440
billion in BA and $2.840 billion in outlays for the combined period
2001-2006, nor may it exceed $7.665 billion in BA and $6.590 billion in
outlays over the 2001-2011 period. The Conferees note that the
authority granted under this section does not permit the Chairman of
the Committee on the Budget to make any adjustments for floor
amendments offered to unrelated legislation.
Section 216: Reserve Fund for the Purchase of Health
Insurance by the Uninsured
Section 216 of the Conference Agreement includes a
reserve fund for legislation which provides resources to
facilitate the purchase of health insurance for the uninsured.
The Conference Agreement applies in both the House of
Representatives and the Senate and permits the appropriate
Budget Committee chairman to adjust committee allocations and
other appropriate budgetary aggregates and allocations
(including the revenue aggregates) for legislation which is
reported (and amendments thereto, or any conference report
thereon) from the Senate Finance Committee and the House
Committee on Ways and Means or the Committee on Energy and
Commerce if the committees report legislation that enables the
uninsured to purchase health insurance. The aggregate level of
spending for such legislation has been assumed within the
Function 550 levels and the spending aggregates in the
Conference Agreement, but will not be allocated to the
committees. The budget levels and aggregates in Function 550
assume that the $28 billion is spent over the 2002-2004 period.
Adjustments may not exceed $28 billion in BA and outlays or $28
billion in revenues or any combination of spending and revenues
for the period of fiscal years 2002 through 2011.
The Conferees note that the authority granted under this
section does not permit the Chairman of the Committee on the
Budget to make any adjustments for floor amendments offered to
unrelated legislation. The Conferees intend, however, to
provide complete flexibility to the authorizing committees to
draft such legislation providing spending or tax changes. The
Conference Agreement provides however that no adjustments may
be made if the cost of such legislation, taken together with
all previously enacted legislation would reduce the surplus
below the level of the Medicare HI Trust Fund surplus for any
fiscal year covered by this budget resolution.
Section 217: Reserve Fund for Defense in the Senate
Section 217 of the Conference Agreement includes a
mechanism in the Senate to increase the section 302(a)
allocation (and other appropriate budgetary aggregates) to the
Committee on Appropriations and the Committee on Armed Services
of the Senate for 2002 in order to make additional resources
available in response to the President's National Defense
Review. The Conference Agreement permits the Chairman of the
Committee on the Budget to increase the 302(a) allocation only
when two requirements are satisfied. First, the President must
submit a specific budget amendment to the Congress requesting
additional funding for fiscal year 2002 in response to the
National Defense Review. Second, the Committee on
Appropriations must have reported an appropriations measure
which provides funding for such budget amendment.
The Conferees note that the authority granted under this
section does not permit the Chairman of the Committee on the
Budget to make any adjustments for floor amendments offered to
unrelated legislation. Note that neither the Function 050
levels nor the aggregates of the resolution contain any
additional resources for this National Defense Review.
Therefore, any adjustments made pursuant to the authority in
this section will reduce the surplus aggregates contained in
the resolution. The Conference Agreement provides, however,
that no adjustments may be made if the cost of such
legislation, taken together with all previously enacted
legislation would reduce the surplus below the level of the
Medicare HI Trust Fund surplus for any fiscal year covered by
this budget resolution.
Section 218: Strategic Reserve Fund in the House
Section 218 of the Conference Agreement establishes a
reserve in the House of Representatives for authorizing or
appropriations measures for the Department of Defense,
following the President's National Defense Review; it also may
be used for legislation that would provide for a prescription
drug benefit, or for other appropriate legislation. The
adjustment may only be made for the amount that the relevant
legislation exceeds the applicable committee's allocation or
the aggregate provided for in the budget resolution. The
reserve fund is further limited in that the adjustment may not
be made if it would cause the on-budget surplus to be less than
an amount equal to the Medicare Hospital Insurance Trust Fund.
Additional items
The Conferees note that the Conference Agreement does not
include any reserve fund language from section 9 of the House
resolution regarding additional discretionary funding for
programs authorized in the Individuals with Disabilities Act.
The Conferees note that the Conference Agreement does not
include any reserve fund language from section 208 of the
Senate Amendment regarding the payment of retired pay and
veterans' disability benefits to disabled military retirees.
The Conference Agreement does however retain the Sense of the
Congress language from section 19 of the House Resolution which
is set out in section 314.
The conference report includes a sense of the Congress
directing the Secretary of Defense to report within 180 days
after the adoption of this Conference Agreement to the relevant
congressional defense committees and to the House and Senate
Budget Committees on the provision of concurrent retirement and
disability benefits for retired members of the Armed Forces.
The report shall address the number of individuals retired from
the Armed Forces who would otherwise be eligible for disability
compensation under the proposed legislation (S. 170 in the
Senate and H.R. 303 in the House of Representatives); the
comparability of the policy toOffice of Personnel Management
guidelines for civilian Federal retirees; the comparability of this
proposed policy to prevailing private sector standards; the numbers of
individuals potentially eligible for concurrent benefits who receive
other forms of Federal assistance and the cost of that assistance; and
alternative initiatives that would accomplish the same result as
concurrent receipt of military retired pay and disability compensation
at different levels of cost. The Secretary of Defense may submit
legislation that he considers appropriate.
Section 314 of the Conference Agreement also includes a
Sense of Congress requesting the Congressional Budget Office
and the Office of Management and Budget to report to the Budget
Committees within 30 days after the adoption of this conference
report on the risk that providing full concurrent receipt of
military retired pay and disability compensation under the
proposed legislation identified above could reduce the on-
budget surplus below the level of the Medicare Hospital
Insurance Trust Fund.
The Conferees also note that the Conference Agreement
does not include any reserve fund language from section 209 of
the Senate Amendment which purported to provide ``fungibility''
between outlays and revenues in reconciliation tax legislation.
Given the language in section 310(c) of the Budget Act which
statutorily provides for ``fungibility,'' the language from
section 209 was superfluous.
The Conference Agreement does not include the language
from section 213 of the Senate Amendment regarding increased
funding for veterans' education benefits. Instead the Conferees
agreed to include the funding within the Function 700 levels,
the resolution aggregates, and the allocation to the
appropriate authorizing committees of the House of
Representatives and the Senate.
The Conference Agreement does not include the language
from section 214 of the Senate Amendment regarding additional
resources for payments in lieu of taxes and for refuge revenue
sharing.
Miscellaneous Provisions
In addition to enforcement provisions and reserve funds,
budget resolutions may contain miscellaneous provisions which
may effect the level of spending, provide additional
enforcement mechanisms or additional guidance in interpreting
the resolution. Subtitle C of Title II of the Conference
Agreement contains two of these provisions.
House resolution
Section 11. Application and effect of changes in
allocations and aggregates
Section 11 establishes the procedures for making
adjustments pursuant to the reserve funds included in this
resolution. It provides 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. It also requires the Budget Committee chairman to
submit any revisions in the budget resolution pursuant to the
reserves for printing in the Congressional Record.
Senate amendment
Section 204: Application and effect of changes in
allocations and aggregates
The Senate amendment contains language which is similar
to the language found in section 222 of the fiscal year 2001
budget resolution and clarifies the application and
effectiveness of the adjustments made by the Chairman of the
Committee on the Budget pursuant to the ``reserve funds'' set
out in the resolution.
Section 205: Exercise of rulemaking powers
The Senate amendment contains language identical to
section 234 of the fiscal year 2001 budget resolution and
states the authority by which Congress adopts the various
budgetary enforcement rules and procedures for the
consideration of certain legislation set out in the resolution.
Section 210: Additional Revenue reductions
The Senate amendment contains a provision which states
that revenue reductions set out in the underlying resolution
should be increased by an additional $69 billion for the period
of fiscal years 2002 through 2011--in order to provide marriage
penalty relief. The language was added by an amendment offered
by Senator Hutchison (TX).
Section 211: Increase funding for IDEA
The Senate amendment contains a provision that states
that the revenue reductions set out in the underlying
resolution should be reduced by $70 billion for the period of
fiscal years 2002 through 2011 and an additional $70 billion in
BA and outlays should be added to Function 500 (Education) over
that same time period--in order to provide additional resources
to IDEA. This language was added by an amendment offered by
Senator Breaux.
Conference agreement
Section 221: Application and Effect of Changes in
Allocations and Aggregates
Section 221 of the Conference Agreement retains the
language of section 11 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. This
section also makes clear that levels in the joint statement
willbe used for purposes of budget enforcement rather than the
levels in the conference report. Finally the Budget Committee chairmen
are given the authority to score legislation for enforcement purposes
based on CBO's updated baseline.
Section 222: Exercise of Rulemaking Powers
Section 222 of the Conference Agreement retains the
language of section 205 of the Senate Amendment. It states the
authority by which Congress adopts the various budgetary
enforcement rules and procedures for the consideration of
certain legislation set out in the budget resolution. An
identical provision was included in section 234 of last year's
budget resolution.
The Conference Agreement does not include the language
from either section 210 or 211 of the Senate Amendment because
all assumptions regarding revenues are taken into account
within the actual revenue aggregates set out in the Conference
Agreement. In addition, the issue of the level of funding for
programs authorized in the Individuals with Disabilities
Education Act is taken into account within the levels for
Function 500, the spending aggregates and the reserve fund set
out in section 216 of the Conference Agreement.
Sense of Congress, House and Senate Provisions
House resolution
The House budget resolution contains the following Senses
of the House or Congress that have no legal force but reflect
the Congress' views on a variety of budget-related issues. The
section numbers and section headings of these reserve funds are
as follows:
Section 14 states a Sense of the House concerning Federal
pay.
Section 15 states a Sense of Congress relating to
Individual Development Accounts and the working poor.
Section 16 provides a Sense of Congress relating to
Federal fire prevention assistance.
Section 17 states a Sense of the House regarding the
deduction of state sales tax from Federal income taxes.
Section 18 states a Sense of Congress regarding funding
for Graduate Medical Education.
Senate amendment
The Senate amendment contains the following Sense of the
Senate provisions:
Section 301 Sense of the Senate on Debt Reduction.
Section 302 Sense of the Senate on AIDS and Other
Infectious Diseases.
Section 303 Sense of the Senate on Consolidated Health
Centers.
Section 304 Sense of the Senate on Funding for Department
of Justice Programs for State and Local Law Enforcement
Assistance.
Section 305 Sense of the Senate on United States Coast
Guard Fiscal Year 2002 Funding.
Section 306 Sense of the Senate on Strengthening our
National Food Safety Infrastructure.
Section 307 Sense of the Senate with Respect to
Increasing Funds for Renewable Energy Research and Development.
Conference agreement
The Conference Agreement contains the following Sense of
the Senate and Sense of Congress provisions:
Subtitle A.
Section 301 Sense of the Senate on conservation.
Section 302 Sense of the Senate on AIDS and other
infectious diseases.
Section 303 Sense of the Senate on Consolidated Health
Centers.
Section 304 Sense of the Senate on Funding for Department
of Justice Programs for State and Local Law Enforcement
Assistance.
Section 305 Sense of the Senate on United States Coast
Guard Fiscal Year 2002 Funding.
Section 306 Sense of the Senate on Strengthening our
National Food Safety Infrastructure.
Section 307 Sense of the Senate with Respect to
Increasing Funds for Renewable Energy Research and Development.
Subtitle B.
Section 311 Asset building for the working poor.
Section 312 Federal Fire prevention assistance.
Section 313 Funding for graduate medical education at
children's teaching hospitals.
Section 314 Concurrent retirement and disability benefits
to retired members of the armed forces.
Section 315 Federal Employee Pay.
Section 316 Sales tax deduction.
Jim Nussle,
John E. Sununu,
Managers on the Part of the House.
Pete Domenici,
Chuck Grassley,
Don Nickles,
Phil Gramm,
Christopher Bond,
Managers on the Part of the Senate.