One Percent Spending Reduction Act of 2013

Summary: One Percent Spending Reduction Act of 2013 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to establish the aggregate projected outlay (outlay cap) (less net interest payments) for FY2014 at the FY2013 outlay cap (as estimated by the Congressional Budget Office [CBO] before March 2013), less 1%. Reduces each outlay cap for FY2015-FY2018 by 1% of the previous fiscal year's outlay cap (as estimated by CBO before March of such fiscal year). Requires the outlay cap for FY2019 and each subsequent fiscal year to be 18% of the CBO-estimated gross domestic product (GDP) for that calendar year. Amends the Congressional Budget Act of 1974 to make it out of order in both chambers to consider any bill, joint resolution, amendment, or conference report that includes any provision that would cause the most recently reported, current outlay cap to be exceeded. Prescribes procedures for waiver or suspension of this rule.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``One Percent Spending Reduction Act 
of 2013''.

SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds the following:
            (1) The fiscal crisis faced by the Federal Government 
        demands immediate action.
            (2) The dramatic growth in spending and debt in recent 
        years threatens our economic and national security:
                    (A) Federal spending has grown from 18 percent of 
                GDP in 2001 to nearly 23 percent of GDP in 2012.
                    (B) Total Federal debt exceeds $16,000,000,000,000 
                and is projected to increase each year over the next 10 
                years.
                    (C) Without action, the Federal Government will 
                continue to run massive deficits in the next decade and 
                total Federal debt will rise to $26,000,000,000,000 by 
                2023.
                    (D) Interest payments on this debt will soon rise 
                to the point where balancing the budget as a matter of 
                policy is beyond the reach of Congress.
            (3) Due to recent tax hikes, Federal revenues are scheduled 
        to rise to approximately 19 percent of GDP, a full percentage 
        point above the average of about 18 percent of GDP over the 
        past 40 years.
            (4) Absent reform, the growth of Social Security, Medicare, 
        Medicaid, and other health-related spending will overwhelm all 
        other Federal programs and consume all projected tax revenues.
    (b) Purpose.--The purpose of this Act is to address the fiscal 
crisis by--
            (1) acting quickly to balance the Federal budget and 
        eliminate the parade of deficits and ballooning interest 
        payments;
            (2) achieving balance by reducing spending one percent per 
        year until spending equals projected long-term revenues; and
            (3) reforming entitlement programs to ensure long-term 
        fiscal stability and balance.

SEC. 3. ESTABLISHMENT AND ENFORCEMENT OF SPENDING CAP.

    (a) Outlay Caps.--The Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by inserting after section 253 the following:

``SEC. 253A. ESTABLISHING OUTLAY CAPS.

    ``In this section, the term `outlay cap' means:
    ``(a) Fiscal Year 2014.--For fiscal year 2014, the aggregate 
projected outlays (less interest payments) for fiscal year 2013 (as 
estimated by the Congressional Budget Office prior to March, 2013), 
less one percent.
    ``(b) Fiscal Year 2015.--For fiscal year 2015, the aggregate 
projected outlays (less interest payments) for fiscal year 2014 (as 
estimated by the Congressional Budget Office prior to March, 2014), 
less one percent.
    ``(c) Fiscal Year 2016.--For fiscal year 2016, the aggregate 
projected outlays (less interest payments) for fiscal year 2015 (as 
estimated by the Congressional Budget Office prior to March, 2015), 
less one percent.
    ``(d) Fiscal Year 2017.--For fiscal year 2017, the aggregate 
projected outlays (less interest payments) for fiscal year 2016 (as 
estimated by the Congressional Budget Office prior to March, 2016), 
less one percent.
    ``(e) Fiscal Year 2018.--For fiscal year 2018, the aggregate 
projected outlays (less interest payments) for fiscal year 2017 (as 
estimated by the Congressional Budget Office prior to March, 2017), 
less one percent.
    ``(f) Fiscal Year 2019 and Subsequent Fiscal Years.--For fiscal 
year 2019 and for each subsequent fiscal year, 18 percent of Gross 
Domestic Product for that calendar year (as estimated by the 
Congressional Budget Office prior to March of the previous fiscal 
year).''.
    (b) Conforming Amendments to BBEDCA.--
            (1) Sequestration preview reports.--Section 254(c)(4) of 
        the Balanced Budget and Emergency Deficit Control Act of 1985 
        is amended to read as follows:
            ``(4) Outlay cap sequestration reports.--The preview 
        reports shall set forth for the budget year estimates for the 
        following:
                    ``(A)(i) For each of budget years 2014 through 
                2019: the aggregate projected outlays (less net 
                interest payment), less one percent.
                    ``(ii) For budget year 2020 and each subsequent 
                budget year: the estimated gross domestic product (GDP) 
                for that budget year.
                    ``(B) The amount of reductions required under 
                section 253A.
                    ``(C) The sequestration percentage necessary to 
                achieve the required reduction under section 253A.''.
            (2) Final sequestration reports.--Section 254(f)(3) of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 is 
        amended to read as follows:
            ``(3) Outlay caps sequestration reports.--The final reports 
        shall contain all the information required in the outlay cap 
        sequestration preview reports. In addition, these report shall 
        contain, for the budget year, for each account to be 
        sequestered, estimates of the baseline level of sequestrable 
        budgetary resources and resulting outlays and the amount of 
        budgetary sources to be sequestered and result in outlay 
        reductions. The report shall also contain estimates of the 
        effects on outlays on the sequestration of each outyear for 
        direct spending programs.''.
    (c) Enforcement.--Title III of the Congressional Budget Act of 1974 
is amended by adding after section 315 the following:

``SEC. 316. ENFORCEMENT PROCEDURES.

    ``(a) Outlay Caps.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint resolution, 
amendment, or conference report that includes any provision that would 
cause the most recently reported, current outlay cap set forth in 
section 253A of the Balanced Budget and Emergency Deficit Control Act 
of 1985 to be breached.
    ``(b) Waiver or Suspension.--
            ``(1) In the senate.--The provisions of this section may be 
        waived or suspended in the Senate only by the affirmative vote 
        of two-thirds of the Members, duly chosen and sworn.
            ``(2) In the house.--The provisions of this section may be 
        waived or suspended in the House of Representatives only by a 
        rule or order proposing only to waive such provisions by an 
        affirmative vote of two-thirds of the Members, duly chosen and 
        sworn.
    ``(c) Point of Order Protection.--In the House, it shall not be in 
order to consider a rule or order that waives the application of 
paragraph (2) of subsection (b).
    ``(d) Motion To Suspend.--It shall not be in order for the Speaker 
to entertain a motion to suspend the application of this section under 
clause 1 of rule XV.''.

SEC. 4. CONFORMING AMENDMENTS.

    The table of contents set forth in--
            (1) section 1(b) of the Congressional Budget and 
        Impoundment Control Act of 1974 is amended by inserting after 
        the item relating to section 315 the following new item:

``Sec. 316. Enforcement procedures.'';
        and
            (2) section 250(a) of the Balanced Budget and Emergency 
        Deficit Control Act of 1985 is amended by inserting after the 
        item relating to section 253 the following new item:

``Sec. 253A. Establishing outlay caps.''.

SEC. 5. EFFECTIVE DATE.

    This Act and the amendments made by it shall apply to fiscal year 
2014 and subsequent fiscal years, including any reports and 
calculations required for implementation in fiscal year 2014.