Economic Growth and Debt Reduction Act

Summary: Economic Growth and Debt Reduction Act - Provides that, for purposes of this Act:  (1) the initial direct spending targets for each of FY 1998 through 2002 shall equal total outlays for all direct spending except net interest as provided in 
H. Con. Res. 84
 (105th Congress), the concurrent resolution on the budget for FY 1998; and (2) the revenue targets are the amounts provided in such resolution. 
Requires the President, as part of each Federal budget submitted to the Congress, to provide an annual review of direct spending and receipts, including:  (1) information on total outlays for programs covered by the direct spending targets, including actual outlays for the prior fiscal year and projected outlays for the current and five succeeding fiscal years; and (2) any amount by which revenues for a budget year and any outyears through FY 2002 exceed the revenue target. 
Directs the Office of Management and Budget to include the amount of any changes in revenues as a deficit decrease under specified estimates and sequestration reports required by the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act). 
Provides that any amount not to exceed the amount of deficit decrease may only be offset by legislation decreasing revenues. 
Directs the President to include a special direct spending message in the budget if the information submitted indicates that:  (1) actual outlays for direct spending in the prior fiscal year exceeded the applicable spending target; or (2) outlays for the current or budget year are projected to exceed targets.  Requires such message to include:  (1) an analysis of the variance in direct spending over the direct spending targets; (2) recommendations for eliminating overages, if any, in the prior, current, or budget year; and (3) the text of a special direct spending resolution implementing such recommendations through reconciliation directives instructing the appropriate committees to recommend changes in laws within their jurisdictions. 
Provides a point of order against consideration of any concurrent budget resolution unless it fully eliminates the entirety of any overage contained in the President's message.  Makes special message and point of order procedures inapplicable for any fiscal year in which the overage is less than one-half of one percent of the direct spending target for that year. 
Applies this Act to direct spending targets and revenues for FY 1998 through 2002.

SECTION 1. SHORT TITLE; PURPOSE.

    (a) Short Title.--This Act may be cited as the ``Economic Growth 
and Debt Reduction Act''.
    (b) Purpose.--The purpose of this Act is--
            (1) to ensure a balanced Federal budget by fiscal year 
        2002;
            (2) to create a mechanism to monitor total costs of direct 
        spending programs, and, in the event that actual or projected 
        costs exceed targeted levels, to require the President and 
        Congress to address adjustments in direct spending; and
            (3) to ensure that windfall revenues are used to promote 
        economic growth through lower taxes.

SEC. 2. ESTABLISHMENT OF DIRECT SPENDING AND REVENUE TARGETS.

    For purposes of this Act--
            (1) the initial direct spending targets for each of fiscal 
        years 1998 through 2002 shall equal total outlays for all 
        direct spending except net interest as provided in H. Con. Res. 
        84, the concurrent resolution on the budget for fiscal year 
        1998; and
            (2) the revenue targets are the revenue amounts provided in 
        H. Con. Res. 84, the concurrent resolution on the budget for 
        fiscal year 1998.

SEC. 3. ANNUAL REVIEW OF DIRECT SPENDING AND RECEIPTS BY PRESIDENT.

    As part of each budget submitted under section 1105(a) of title 31, 
United States Code, the President shall provide an annual review of 
direct spending and receipts, which shall include--
            (1) information on total outlays for programs covered by 
        the direct spending targets, including actual outlays for the 
        prior fiscal year and projected outlays for the current fiscal 
        year and the 5 succeeding fiscal years; and
            (2) any amount by which revenues for a budget year and any 
        outyears through fiscal year 2002 exceed the revenue target in 
        section 2(2).

SEC. 4. ECONOMIC GROWTH PROTECTION.

    (a) Inclusion on Scorecard.--The Office of Management and Budget 
shall include the amount of any changes in revenues determined pursuant 
to section 3(2) as a deficit decrease under the estimates and reports 
required by section 252(b) and section 254 of the Balanced Budget and 
Emergency Deficit Control Act of 1985.
    (b) Use of Revenues Exceeding Target.--Any amount not to exceed the 
amount of deficit decrease determined under section 3(2) may only be 
offset by legislation decreasing revenues.

SEC. 5. SPECIAL DIRECT SPENDING MESSAGE BY PRESIDENT.

    (a) Trigger.--If the information submitted by the President under 
section 3(1) indicates--
            (1) that actual outlays for direct spending in the prior 
        fiscal year exceeded the applicable direct spending target; or
            (2) that outlays for direct spending for the current or 
        budget year are projected to exceed the applicable direct 
        spending targets,
the President shall include in his budget a special direct spending 
message meeting the requirements of subsection (b).
    (b) Contents.--The special direct spending message shall include--
            (1) an analysis of the variance in direct spending over the 
        direct spending targets; and
            (2) the President's recommendations for eliminating 
        overages, if any, in the prior, current, or budget year.
    (c) Proposed Special Direct Spending Resolution.--The special 
direct spending message shall include the text of a special direct 
spending resolution implementing the President's recommendations 
through reconciliation directives instructing the appropriate 
committees of the House of Representatives and Senate to determine and 
recommend changes in laws within their jurisdictions.

SEC. 6. REQUIRED RESPONSE BY CONGRESS.

    (a) In General.--It shall not be in order in the House of 
Representatives or the Senate to consider a concurrent resolution on 
the budget unless that concurrent resolution fully eliminates the 
entirety of any overage contained in the applicable report of the 
President under section 5 through reconciliation directives.
    (b) Waiver and Suspension.--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. This section shall be subject to the 
provisions of section 258 of the Balanced Budget and Emergency Deficit 
Control Act of 1985.
    (c) Appeals.--Appeals in the Senate from the decisions of the Chair 
relating to any provision of this section shall be limited to 1 hour, 
to be equally divided between, and controlled by, the appellant and the 
manager of the bill or joint resolution, as the case may be. An 
affirmative vote of three-fifths of the Members of the Senate, duly 
chosen and sworn, shall be required in the Senate to sustain an appeal 
of the ruling of the Chair on a point of order raised under this 
section.

SEC. 7. RELATIONSHIP TO BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL 
              ACT.

    Reductions in outlays resulting from legislation reported pursuant 
to section 6 or reductions in revenues reported pursuant to section 
4(b) shall not be taken into account for purposes of any budget 
enforcement procedures under the Balanced Budget and Emergency Deficit 
Control Act of 1985 and the Congressional Budget Act of 1974.

SEC. 8. ESTIMATING MARGIN.

    For any fiscal year for which the overage is less than one-half of 
1 percent of the direct spending target for that year, the procedures 
set forth in sections 5 and 6 shall not apply.

SEC. 9. EFFECTIVE DATE.

    This Act shall apply to direct spending targets and revenues for 
fiscal years 1998 through 2002 and shall expire at the end of fiscal 
year 2002.