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**RSC Policy Brief:**

**Fiscal Reform Bills Authored by RSC Members**

*March 7, 2008*

**[Context]{.underline}**: The FY 2009 budget process begins with
several fiscal trends of concern to many conservatives:

-   *The Deficit.* The President's budget projects a deficit of \$410
    billion in 2008 and \$407 billion in 2009. These would be the second
    and third largest deficits in U.S. history. The federal government
    has run a deficit in 42 of the last 47 years.

-   *National Debt.* The national debt is \$9.3 trillion which comes to
    \$30,600 per American citizen.

-   *Unfunded Liabilities.* The national debt does not include all of
    the federal government's fiscal exposures. That figure, the federal
    government's unfunded liabilities, comes to *\$52.7 trillion* over
    75 years---Medicare liabilities alone amount to \$34.1 trillion.
    According to GAO, due to growing entitlement costs, taxes would have
    to double by 2040 in order to have a balanced budget in that year.

-   *Taxes.* The federal tax burden if left on auto-pilot will increase
    to levels never before seen in American history, from 18.8% of GDP
    in 2007, to 21.4% of GDP in 2030, to 23.5% of GDP in 2050. The
    federal tax burden has never before exceeded 20.9% of GDP, not even
    during World War II.

-   *Earmarks.* The number of earmarks has increased from 958 in 1996
    (the first Republican budget after the 1994 Republican takeover of
    Congress) to 11,144 in 2008.

For a more comprehensive list of spending data, see this RSC
[one-pager](http://www.house.gov/hensarling/rsc/doc/pb_spending_stats.doc).

The purpose of this RSC Policy Brief, which will be updated periodically
throughout the year, is to analyze fiscal reform bills introduced by RSC
Members that address some of the issues noted above. **Feel free to send
future examples of such legislation to <brad.watson@mail.house.gov>**

**[Family Budget Protection Act]{.underline}**:

**Representatives Jeb Hensarling (R-TX), Paul Ryan (R-WI), and John
Campbell (R-CA)** introduced the [Family Budget Protection Act of
2007](http://www.congress.gov/cgi-lis/query/z?c110:H.R.2084:) (H.R.
2084), the RSC consensus omnibus budget process reform bill. Among other
things the Family Budget Protection Act of 2007 converts the budget
resolution into a joint budget resolution that is signed by the
President and has the force of law, replaces the current 20 budget
functions with a one-page budget of only five broad spending categories,
and places a lid on federal spending with a limit on entitlement
spending and a cap on discretionary spending set at the rate of
inflation. In addition, the bill includes several other reforms offered
by RSC Member fiscal reform bills such as the CUT Resolution (H.Res.
776) and the Legislative Line Item Veto (H.R. 689). The bill has not
been acted on by committee.

**[Legislative Proposals by RSC Members]{.underline}**:

**Rep. Michele Bachmann (R-MN)** introduced the [Truth in Accounting
Act](http://thomas.loc.gov/cgi-bin/query/D?c110:1:./temp/~c110wtcxCs::)
(H.R. 3958), which would require Congress to disclose its major fiscal
exposures, including unfunded obligations from entitlement spending, in
the *Financial Report of the U.S. Government*. According to GAO, the
federal government's unfunded obligations amount to \$53 trillion,
nearly six times the size of the national debt. The bill has not been
acted on by committee.

**Rep. Gresham Barrett (R-SC)** introduced the [Government Waste
Reduction Act of
2007](http://thomas.loc.gov/cgi-bin/query/D?c110:1:./temp/~c110iMuXPE::)
(H.R. 1121), which would have reduced discretionary spending by 5
percent in FY 2007, thus establishing a lower baseline for the FY
2008-2012 period. According to the author, this alone would save \$244
billion over five years. The bill also applies PAYGO to new mandatory
spending, while preventing tax increases from being used to fund new
mandatory spending. The bill has not been acted on by committee.

**Rep. Gresham Barrett (R-SC)** introduced the [Emergency Spending
Control Act of
2007](http://thomas.loc.gov/cgi-bin/query/D?c110:1:./temp/~c110QuFoOW::)
(H.R. 1122), to simplify the current budget by replacing the 20 budget
functions with a one-page budget resolution, establishing spending
levels for only five broad spending categories: mandatory, defense and
non-defense discretionary, interest payments, and emergencies. The
legislation also creates a non-military reserve fund in the budget for
"emergency" spending and all spending from that fund must qualify as
sudden, urgent, unforeseen, and temporary.

**Rep. Marsha Blackburn (R-TN)** introduced [H.R.
373](http://thomas.loc.gov/cgi-bin/query/D?c110:1:./temp/~c110UymHGT::),
legislation to enact a 1 percent across-the-board rescission in
non-defense, non-homeland-security discretionary spending for fiscal
year 2007. The bill has not been acted on by committee.

**Rep. Marsha Blackburn (R-TN)** introduced [H.R.
374](http://thomas.loc.gov/cgi-bin/query/D?c110:1:./temp/~c110ZjTOck::),
legislation to enact a 2 percent across-the-board rescission in
non-defense, non-homeland-security discretionary spending for fiscal
year 2007. The bill has not been acted on by committee.

**Rep. Marsha Blackburn (R-TN)** introduced [H.R.
379](http://thomas.loc.gov/cgi-bin/query/D?c110:1:./temp/~c110gRiA0K::),
legislation to enact a 5 percent across-the-board rescission in
non-defense, non-homeland-security discretionary spending for fiscal
year 2007. The bill has not been acted on by committee.

**Rep. Marsha Blackburn (R-TN)** introduced the [Savings for Seniors Act
of
2007](http://thomas.loc.gov/cgi-bin/query/D?c110:1:./temp/~c110zbMgZ1::)
(H.R. 581), to dedicate Social Security surpluses to a "Social Security
Surplus Protection Account," in order to prevent the surpluses from
being used to fund other government programs. The bill also creates a
commission composed of nine members to recommend how to invest money
deposited in the Social Security Surplus Protection Account. No later
than October 1, 2009, the commission would be required to issue
recommendations on appropriate investment vehicles for the Social
Security Surplus Account, together with proposals for such
administrative and legislative changes as the Commission determines
necessary to authorize and implement such recommendations. Congress
would be free to approve, reject, or not consider the commission's
recommendations. The bill has not been acted on by committee.

**Rep. Vern Buchanan (R-FL)** introduced [H.J.Res
21](http://thomas.loc.gov/cgi-bin/query/D?c110:2:./temp/~c110yHnHlN::),
to amend the Constitution to require a balanced budget. The balanced
budget requirement could be suspended with a three-fifths vote of both
the House and the Senate. The main difference between H.J.Res. 21, and
the 1995 House-passed (Contract with America) Balanced Budget Amendment,
is the inclusion of a section to exempt outlays for natural disasters as
counting toward the balanced budget requirement. The bill has not been
acted on by committee.

**Rep. Vern Buchanan (R-FL)** introduced the [Earmark Accountability and
Reform Act of
2007](http://www.congress.gov/cgi-lis/query/z?c110:H.R.1375:) (H.R.
1375), to create a legislative line item veto (similar to H.R. 4890,
which passed the House in the 109^th^ Congress). The bill also makes any
earmark that has not previously passed either the House or Senate
(airdropped earmarks) out of scope of a conference committee. Finally,
the bill requires a two-thirds vote to call up for consideration a rule
that either waives the requirement that three calendar days pass between
a bill being reported out of committee and being considered on the floor
or a rule that waives the requirement that three calendar days pass
between a conference report being filed and being considered on the
floor. The bill has not been acted on by committee.

**Rep. Dave Camp (R-MI)** introduced [H.R.
272](http://www.congress.gov/cgi-lis/query/z?c110:H.R.272:), to require
amounts remaining in Members\' representational allowances at the end of
a fiscal year be transferred to the Treasury and used for deficit
reduction. The bill has not been acted on by committee.

**Rep. Steve Chabot (R-OH)** introduced [H.Res.
283](http://www.congress.gov/cgi-lis/query/z?c110:H.RES.283:), to
prohibit one or more individual appropriations bill from being
considered in the same bill, thus preventing Congress from concluding
the appropriations process with an omnibus bill. Exceptions are provided
for continuing resolutions or a supplemental appropriations bill. The
bill has not been acted on by committee.

**Rep. Mike Conaway (R-TX)** introduced [H.Res.
14](http://www.congress.gov/cgi-lis/query/z?c110:H.RES.14:), legislation
which amends the Rules of the House to prohibit consideration of a bill,
joint resolution, amendment, or conference report from being considered
that establishes a new federal program *unless* the legislation also
eliminates one or more federal program of an equal or greater cost. The
bill provides exceptions for legislation that creates new defense,
homeland security or emergency programs. H.Res. 14 has not been acted on
by committee.

**Rep. Mike Conaway** **(R-TX)** introduced [H.Res.
50](http://www.congress.gov/cgi-lis/query/z?c110:H.RES.50:), to allow
Members to direct that any savings resulting from an amendment to an
appropriations bill go to deficit reduction, by causing a reduction to
the 302(b) allocation of that particular subcommittee as well as the
overall 302(a) allocation. The 302(a) sets the overall discretionary
spending total under the budget resolution for a particular year. The
bill has not been acted on by committee.

**Rep. Jeff Flake** **(R-AZ)** introduced [H.Res.
284](http://www.congress.gov/cgi-lis/query/z?c110:H.RES.284:), to amend
clause 9 of House Rule XXI to make the point of order against
consideration of legislation that does not contain either a list of
earmarks, or a statement that the legislation does not contain earmarks,
also apply if the list is *inaccurate.* Under current House Rules, the
point of order does not apply as long as there is a list of earmarks,
regardless of the list's accuracy. The bill has not been acted on by
committee.

**Rep. Jeff Flake** **(R-AZ)** introduced [H.Res.
727](http://www.congress.gov/cgi-lis/query/z?c110:H.RES.727:), to amend
House Rules to prohibit the consideration of any legislation that
includes earmarks until a bipartisan panel is established to provide
oversight over the congressional earmarking process and the panel
reports back with recommendations. The bill has not been acted on by
committee.

**Rep. Jeff Flake** **(R-AZ)** introduced the [Earmark Transparency and
Accountability
Act](http://www.congress.gov/cgi-lis/query/z?c110:H.R.631:) (H.R. 631),
to prohibit federal agencies from obligating funds for earmarks that are
only included in report language, and not within the legislative text.
The bill has not been acted on by committee.

**Rep. Jeff Flake** **(R-AZ)** introduced [H.R.
1789](http://www.congress.gov/cgi-lis/query/z?c110:H.R.1789:), which
requires the Congressional Budget Office and the Joint Committee on
Taxation to use dynamic scoring in making budget estimates for
legislative proposals affecting revenue law. The bill has not been acted
on by committee.

**Rep. Jeff Flake** **(R-AZ)** introduced the [Securing Medicare and
Retirement for Tomorrow Act of
2007](http://www.congress.gov/cgi-lis/query/z?c110:H.R.4181:) (H.R.
4181), to direct the 7.65 percent employee portion of the FICA tax to a
Personal Social Security Account. An individual could choose from five
approved investment options within the Personal Social Security Account.
At retirement a worker would receive an estimate of the worth of his
Personal Social Security Account and could then choose between the
account or the traditional Social Security benefit. The bill makes no
changes to benefits for current retirees. On Medicare, H.R. 4181 allows
younger workers to choose between the current system and a system paired
with a savings account and a high-deductible health plan.

**Rep. Phil Gingrey** **(R-GA)** introduced [H.Res.
786](http://www.congress.gov/cgi-lis/query/z?c110:H.RES.786:), to
require the Military-Veterans Appropriations bill to be considered as a
stand alone bill, instead of being combined with one or more other
appropriations bills. This legislation is intended to prevent what
happened during the FY 2008 appropriations process, where the Democrats
combined the Military-Veterans and Labor-HHS bills. The bill has not
been acted on by committee.

**Rep. Phil Gingrey** **(R-GA)** introduced the [Earmark Reform Act of
2007](http://www.congress.gov/cgi-lis/query/z?c110:H.R.3738:) (H.R.
3738), to set a cap on total spending on earmarks (\$14.5 billion in the
first year and no more than 1% of discretionary spending in all
succeeding years) and then to divide this amount equally between the 535
Members of the House and Senate, setting a cap of approximately \$27
million (\$14.5 billion divided by 535). Members who do not request
earmarks would have their \$27 million allocation go toward deficit
reduction. The bill has not been acted on by committee.

**Rep. Louie Gohmert** **(R-TX)** introduced the [Zero Baseline Budget
Act of 2007](http://www.congress.gov/cgi-lis/query/z?c110:H.R.1442:)
(H.R. 1442), to remove the current assumption in the CBO baseline that
discretionary spending will grow by at least the rate of inflation and
to make the CBO baseline for the next fiscal year an extension of
discretionary spending in the current fiscal year (not including
emergency spending or supplementals). This reform was included in the
Family Budget Protection Act. The bill has not been acted on by
committee.

**Rep. Bob Goodlatte** **(R-VA)** introduced [H.J.Res
1](http://www.congress.gov/cgi-lis/query/z?c110:H.J.RES.1:), to amend
the Constitution to require a balanced budget. Except for the effective
date, the language of the proposed amendment is the same as the 1995
House-passed Contract with America version. The bill has not been acted
on by committee, despite its [160
cosponsors](http://www.congress.gov/cgi-lis/bdquery/D?d110:1:./temp/~bdl1ZE:@@@P:dbs=n:|/billsumm/billsumm.php|).

**Rep. Jeb Hensarling** **(R-TX)** introduced the [Government Shutdown
Prevention Act](http://www.congress.gov/cgi-lis/query/z?c110:H.R.3583:)
(H.R. 3583) to provide a fallback, automatic *[clean]{.underline}*
continuing resolution in the event that Congress otherwise fails to
provide spending authority by either enacting appropriations bills or a
continuing resolution. The spending level would be set at the lower of
the funding level provided in the previous fiscal year, or the House and
Senate approved spending bills, as has become routine---enabling
essential government services to continue. The bill has not been acted
on by committee. This provision was included in the Family Budget
Protection Act.

**Rep. Sam Johnson** **(R-TX)** introduced the [Individual Social
Security Investment Program
Act](http://www.congress.gov/cgi-lis/query/z?c110:H.R.2002:) (H.R. 2002)
to allow younger workers to invest their portion of the Social Security
tax---the 6.2 percent payroll tax levied on the employee directly---in
personal accounts. Anyone born before January 1, 1953 would be
unaffected by the legislation. See here for Representative Johnson's
[statement](http://www.house.gov/hensarling/rsc/doc/CA_043007_johnsonSS.doc)
on H.R. 2002. The bill has not been acted on by committee.

**Rep. Steve King** **(R-IA)** introduced the [CUT
Resolution](http://www.congress.gov/cgi-lis/query/z?c110:H.RES.776:)
(H.Res. 776), to amend House Rules to require the Majority Leader to
bring a quarterly (by February 1^st^, May 1^st^, July 30^th^, and
November 11^th^) rescissions bill before the House under an open rule.
Any rescissions approved by the House would be dedicated to deficit
reduction via a reduction to the 302(a) allocation for that fiscal year.
This reform was included in the Family Budget Protection Act. The bill
has not been acted on by committee.

**Rep. Jack Kingston** **(R-GA)** introduced [H.Con.Res.
263](http://www.congress.gov/cgi-lis/query/z?c110:H.CON.RES.263:), to
create a sixteen member Joint Select Committee on Earmark Reform and to
place a moratorium on earmarks pending the committee's report. From the
date of enactment, the Joint Select Committee would have six months to
issue such a report. The bill has not been acted on by committee, and
the Democrats have refused to allow the bill to be considered on the
floor, despite its 158 cosponsors.

**Rep. Ron Lewis** **(R-KY)** introduced the [Social Security Guarantee
Plus Act](http://www.congress.gov/cgi-lis/query/z?c110:H.R.1090:) (H.R.
1090), to give workers who pay Social Security taxes the option of a
voluntary, refundable tax credit equal to 4% of their earnings (up to
\$1,000) to be invested in a tax-free retirement account. At retirement
a worker would receive five percent of the balance in the account and
then the higher of the promised Social Security benefits under current
law or the benefit payout based on the amount of money in the account.

**Rep. Patrick McHenry** **(R-NC)** introduced the [Commission On
Reforming Entitlement Spending
Act](http://www.congress.gov/cgi-lis/query/z?c110:H.R.489:) (H.R. 489),
to create a 15-member commission to address the fiscal challenges facing
the U.S., including the long-term imbalance between federal spending
commitments and federal revenues. The bill requires the commission to
report back to the Congress and President within 180 days of enactment,
and then 60 days thereafter to submit a legislative proposal. Finally,
the bill creates a process for expedited consideration in the Congress
of the commission's legislative proposal as well as potential
alternatives offered by the President or the House and Senate Budget
Committees.

**Rep. Marilyn Musgrave** **(R-CO)** introduced [H.J.Res.
7](http://www.congress.gov/cgi-lis/query/z?c110:H.J.RES.7:), to amend
the Constitution to require a balanced budget. Except for the effective
date, the language of the proposed amendment is the same as the
House-passed Contract with America version of 1995. The bill has not
been acted on by committee.

**Rep. Randy Neugebauer** **(R-TX)** introduced the [REAL Supplemental
Appropriations
Act](http://www.congress.gov/cgi-lis/query/z?c110:H.R.3857:) (H.R. 3857)
to provide a point of order against the inclusion of non-emergency
designated spending in a supplemental, earmarks in a supplemental, and
any supplemental that includes spending for more than one emergency
spending item. The bill has not been acted on by committee.

**Rep. Ed Royce** **(R-CA)** introduced the [Government Reform
Act](http://www.congress.gov/cgi-lis/query/z?c110:H.R.2252:) (H.R.
2252), to create a 12-member Government Reform Commission that would,
among other things, be directed to determine whether areas of overlap
exist and whether the mission of an agency has become obsolete, find
opportunities for increasing efficiency and reducing costs in executive
agencies, and determine whether any federal programs should be
eliminated. The commission would then make specific recommendations to
reduce waste in executive agencies, with a procedure for consideration
of the commission's recommendations modeled on the Defense Base Closure
and Realignment Commission (BRAC) process. The bill has not been acted
on by committee.

**Rep. Paul Ryan** **(R-WI)** introduced the [Legislative Line Item
Veto](http://www.congress.gov/cgi-lis/query/z?c110:H.R.689:) (H.R. 689),
to allow the President to propose the cancellation of any discretionary
budget authority, item of direct spending, or targeted tax benefit
within 45 days of enactment. Either House may reject proposed
cancellations, but the Congress could not fail to consider the
President's proposal. All cancellations approved by the Congress would
be dedicated to deficit reduction. The House, in the 109^th^ Congress,
passed nearly identical legislation by a vote of [247 to
172](http://clerk.house.gov/evs/2006/roll317.xml). The bill has not been
acted on by committee.

**Rep. Cliff Stearns** **(R-FL)** introduced the [Deficit Accountability
Act of 2007](http://www.congress.gov/cgi-lis/query/z?c110:H.R.229:)
(H.R. 229), to prevent scheduled pay increases for Members of Congress
from taking place if the federal budget ran a deficit in the previous
year. The bill has not been acted on by committee.

**Rep. Tim Walberg** **(R-MI)** introduced the [Social Security and
Medicare Lock-Box
Act](http://www.congress.gov/cgi-lis/query/z?c110:H.R.4338:) (H.R.4338),
to create a lock-box for Social Security and Medicare Part A surpluses.
The bill would enforce the lock-box by creating a point of order against
consideration of a budget resolution that contains an on-budget surplus
that is less than the amount of the Social Security and Part A
surpluses. The bill also requires the President's budget request to
include an on-budget surplus that exceeds the Social Security and
Hospital Insurance surpluses. Finally, the bill allows a budget
resolution or the President's budget request to get around this
requirement by proposing Medicare or Social Security reform. The bill
has not been acted on by committee.

**[RSC Staff Contact]{.underline}**: Brad Watson,
<brad.watson@mail.house.gov>, (202) 226-9719