99–006

107TH CONGRESS REPT. 107–200 " ! HOUSE OF REPRESENTATIVES 1st Session Part 2

BUDGET RESPONSIBILITY AND EFFICIENCY ACT OF 2001

NOVEMBER 14, 2001.—Committed to the Committee of the Whole House on the

State of the Union and ordered to be printed

Mr. DREIER, from the Committee on Rules,

submitted the following

R E P O R T

together with

DISSENTING VIEWS

[To accompany H.R. 981]

[Including cost estimate of the Congressional Budget Office]

The Committee on Rules, to whom was referred the bill (H.R.

981) to provide a biennial budget for the United States Government, having considered the same, report favorably thereon with

amendments and recommend that the bill as amended do pass.

The amendments (stated in terms of the page and line numbers

of the introduced bill) are as follows:

Page 6, line 13, strike ‘‘(as amended by section 3)’’.

Page 6, line 16, strike ‘‘(13)’’ and insert ‘‘(11)’’.

Page 10, line 21, insert ‘‘after ‘May 15’ ’’ before the period.

Page 25, line 3, strike ‘‘(as amended by section 6(a) is further’’

and insert ‘‘is’’.

Page 25, line 6, strike ‘‘318.’’ and insert ‘‘316.’’.

Page 26, line 1, strike ‘‘ ‘(3) For’’ and insert ‘‘ ‘(b) For’’ and strike

‘‘subsection’’ and insert ‘‘section’’.

Page 26, line 7, strike ‘‘317’’ and insert ‘‘315’’ and after line 8,

strike ‘‘318.’’ and insert ‘‘316.’’.

Page 26, line 14, strike ‘‘2004’’ and insert ‘‘2003’’.

Page 26, amend lines 16 and 17 to read as follows:

(A) by striking ‘‘at least every three years’’ and

all that follows thereafter and inserting ‘‘at least

every 4 years, except that strategic plans submitted by September 30, 2003, shall be updated

and revised by September 30, 2006.’’; and

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Page 26, line 23, strike ‘‘2004’’ and insert ‘‘2003’’.

Page 28, line 18, insert ‘‘two’’ before ‘‘ ‘years’ ’’.

Page 29, strike lines 1 through 7 and redesignate the succeeding

subsections accordingly.

Page 29, line 11, strike ‘‘2004’’ and insert ‘‘2003’’.

Page 29, line 13, after ‘‘4 years’’ insert ‘‘except that strategic

plans submitted by September 30, 2003, shall be updated and revised by September 30, 2006’’.

Page 29, line 14, insert ‘‘in subsection (b),’’ after ‘‘(3)’’.

Page 29, line 19, strike ‘‘2004’’ and insert ‘‘2003’’.

Page 32, line 16, strike ‘‘319.’’ and insert ‘‘317.’’.

Page 33, line 4, strike ‘‘318’’ and insert ‘‘316’’ and after line 4,

strike ‘‘319.’’ and insert ‘‘317.’’.

Purpose of the Bill

The purpose of H.R. 981, the Budget Responsibility and Efficiency Act of 2001, is to: (1) increase Congressional control of the

budget process by reducing the amount of time spent on budget

matters while improving the quality of those deliberations; and (2)

encourage longer time horizons in policy planning and greater stability in fiscal policy.

SUMMARY OF THE BILL

H.R. 981 establishes a two-year budgeting and appropriations

cycle and timetable, defining the budget biennium as the two consecutive fiscal years beginning October 1 of any odd-numbered

year.

H.R. 981 requires the President to submit a two-year budget at

the beginning of the first session of Congress. This budget would

cover each year in the biennium and planning levels for the four

out-years. In addition to submitting a Mid-Session Review by July

16 of each year, the President will also be required to also submit

a Mid-Biennium Review on or before February 15 of each even

numbered year (the second year of the biennium).

H.R. 981 requires Congress to enact two-year appropriations bills

(which specify the amount of appropriations provided for each fiscal

year) during the first session of each Congress. The bill provides

a new point of order against appropriations bills, other than supplemental appropriations bills, that fail to cover two years.

Under H.R. 981, the second session of a Congress will be devoted

to consideration of biennial or multi-year authorization bills and

oversight of federal programs. The bill provides a majority point of

order against authorization legislation that covers less than two

years except those measures limited to temporary programs or activities lasting less than two years.

H.R. 981 modifies the Government Performance and Results Act

(GPRA) to fit the government performance planning and reporting

process into the two-year budget cycle to enhance oversight of federal programs.

The bill further allows the House and Senate to consider reconciliation legislation, if necessary, during this second session of a

Congress.

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BACKGROUND AND LEGISLATIVE HISTORY

The Congressional Budget and Impoundment Control Act of 1974

(Public Law 93–344) provides Congress with an overall framework

for considering separate and revenue legislation. The primary purpose of this Act were to reassert the congressional role in budgeting, to add some centralizing influence to the Federal budget

process, and to constrain the use of impoundments.

General agreement exists that the Congressional Budget Act has

been successful at increasing the attention of Congress to the whole

budget, reasserting the congressional role in budgeting and controlling impoundments, but the Act is now viewed as an overwhelming

success in every respect. First, it has not brought the order and

timeliness to congressional budget action for which advocates had

hoped. Deadlines for enacting budget resolutions and the passing

of appropriation bills have routinely been missed. Second, establishing the Budget Committees and a centralized decision-making

process may have increased the level of budgetary conflict in the

Congress. Authority and power were not significantly redistributed

among committees and the leadership; rather new layers of responsibilities and procedures were added to those that already existed.

The result has been to create a good deal of repetition where the

same issue—for example, the fate of the B–2 bomber—can be debated three times (during consideration of the budget resolution,

the defense authorization bill, and the defense appropriation bill).

TABLE 1.—HISTORY OF REGULAR AND CONTINUING APPROPRIATIONS, FY 1974–2001

Fiscal year

Regular appropriations

bills enacted

by the start of

the fiscal year

Continuing

resolutions

enacted for

the fiscal year

1974 ................................................................................................................................................. 3 7

1975 ................................................................................................................................................. 7 4

1976 ................................................................................................................................................. 2 3

1977 ................................................................................................................................................. 13 2

1978 ................................................................................................................................................. 9 3

1979 ................................................................................................................................................. 5 1

1980 ................................................................................................................................................. 3 2

1981 ................................................................................................................................................. 1 2

1982 ................................................................................................................................................. 0 5

1983 ................................................................................................................................................. 1 2

1984 ................................................................................................................................................. 4 4

1985 ................................................................................................................................................. 4 4

1986 ................................................................................................................................................. 0 5

1987 ................................................................................................................................................. 0 5

1988 ................................................................................................................................................. 0 5

1989 ................................................................................................................................................. 13 0

1990 ................................................................................................................................................. 1 3

1991 ................................................................................................................................................. 0 5

1992 ................................................................................................................................................. 3 4

1993 ................................................................................................................................................. 1 1

1994 ................................................................................................................................................. 2 3

1995 ................................................................................................................................................. 13 0

1996 ................................................................................................................................................. 0 5

1997 ................................................................................................................................................. 13 0

1998 ................................................................................................................................................. 1 6

1999 ................................................................................................................................................. 1 6

2000 ................................................................................................................................................. 4 7

2001 ................................................................................................................................................. 2 21

Sources: CRS Reports (98–800 GOV, 96–224 GOV, 94–799 GOV, and RL 30343).

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During the 27-year history of the Budget Act, Congress has met

the deadline for completion of a budget resolution only four times.

Also since 1974, Congress has failed to complete action on the thirteen individual appropriation bills to fully fund the government before the start of the fiscal year for every year except three. In 1988,

1994 and 1996, the Congress barely made the fiscal year deadline.

When action on regular appropriations bills is delayed, this requires Congress and the President to agree on a continuing resolution (CR) to provide interim funding the Federal government’s operations until a specific date or until the enactment of the applicable regular appropriations acts. If the appropriations bills are not

passed by the date specified in the CR, then another CR must be

passed. The passage of multiple successive CR’s in one appropriations cycle is not uncommon.

The annual rush to complete action on budget, authorizations

and appropriations items not only produces a poor budget process,

it also comes at the expense of careful deliberation on matters that

are not related to the budget. During the 1993 Joint Committee on

the Organization of Congress hearings, one theme predominated

the review of Congress: Members of Congress are spread too thin

to adequately carry their duties. Senator Byrd captured this problem by referring to the ‘‘fractured attention spans’’ of Senators.

Congress rarely meets its deadlines, frequently debates the same

issues again and again, and devotes more and more of its time to

the budget process.

The annual process of developing budgets and justifications has

also kept federal agencies on a perpetual budget cycle treadmill,

leaving little time to step back and review the management and effectiveness of the programs they run. Executing an annual budget

requires nearly three years of combined effort by the Congress and

the Administration. The Federal government expends an enormous

amount of effort to prepare, review, submit and ultimately legislate

the budget.

THE BENEFITS OF BIENNIAL BUDGETING—REDUCING REPETITION

The current budget process is overly repetitive, inefficient and

bureaucratic, and filled with time-consuming budget votes. Effective oversight gets crowded out.

Currently, Congress completes at least four separate budget processes annually following Presidential submission of the Administration’s budget: (1) the concurrent budget resolution, (2) program authorizations, (3) budget reconciliation, and (4) consideration of thirteen individual appropriation bills. H.R. 981 would not eliminate

any of these processes, but it would require their consideration biennial instead of annually. As Table 2 show, Congress devotes

much of its time to budget-related measures, which because of their

repetitive nature, have become confusing to the public. Between

1990 and 2000, x% of all roll call votes were budget-related.

TABLE 2.—HOUSE BUDGET-RELATED ROLL-CALL VOTES, BY TYPE OF MEASURE, CALENDAR YEARS

1990–2000

Measure

Calendar years—

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Appropriations 1 .................................... 112 105 138 176 113 292 147 155 124 156 178

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TABLE 2.—HOUSE BUDGET-RELATED ROLL-CALL VOTES, BY TYPE OF MEASURE, CALENDAR YEARS

1990–2000—Continued

Measure

Calendar years—

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Authorization 2 ...................................... 96 79 76 98 81 67 57 52 48 57 66

Tax 1 ...................................................... 0 1 17 0 2 15 9 3 11 9 35

Budget Resolution 1 .............................. 8 9 10 13 9 14 8 10 4 9 12

Reconciliation 1 ..................................... 7 0 0 9 0 9 9 12 0 4 12

Debt Ceiling 1 ....................................... 6 0 0 4 0 11 10 0 0 0 0

Miscellaneous 3 ..................................... 5 3 12 11 19 30 4 6 9 9 9

Total Budget-Related Votes .... 234 197 253 311 224 438 244 238 196 244 312

Total Votes .............................. 536 444 488 615 507 885 455 640 547 611 603

Percentage Budget-Related Votes ........ 44 44 52 51 44 49 54 37 36 40 52

Notes:

1 Includes votes on amendments, motions to recommit, measures, and conference reports, as well as all procedural issues.

2 Includes votes on amendments, motions to recommit, conference reports, and motions to instruct conferees. Excludes most procedural votes. 3 Includes votes on amendments, motions to recommit, measures, conference reports, and motions to instruct conferees. Excludes most procedural votes. [‘‘Miscellaneous’’ covers votes not included in other categories, such as measures to change the budget process, override the President’s line item veto, change revenues directly through tariff revisions, and reduce spending directly.]

Source: Congressional Quarterly Almanac 1990–1998 and 2000 and Congressional Quarterly Weekly Reports, 1999 (Washington, Congressional Quarterly, Inc.). Compiled by Congressional Research Service, Government and Finance Division.

Congress’ annual struggle to complete the budget, authorization,

and appropriations processes results in all three processes falling

short. The solution is not to eliminate any one of these important

functions. The solution is to do them less often.

Although the annual budget process is encumbered by missed

deadlines, redundancies and waste, the Federal government can

govern effectively under a biennial budget. A biennial budget dovetails with the two-year session of a Congress. Members of Congress

already are personally aware of how such budgeting can be more

efficient. Since 1990 for the Senate and 1995 for the House, committee funding has been provided in two-year funding bills. A survey of 50 federal agencies done by Senator Domenici found that

thirty-seven agencies supported biennial budgeting. None opposed

it. The agencies generally responded they could operate more efficiently under a biennial budget.

THE BENEFITS OF BIENNIAL BUDGETING—IMPROVING OVERSIGHT

The current overwhelming appropriations workload upsets the

intended balance between the authorization and appropriations

committees. Biennial budgeting would help restore the influence of

the authorization process.

Congress has a clear constitutional responsibility to conduct

oversight to improve the efficiency, economy, and effectiveness of

governmental operations and programs. In Watkins v. United

States, the Supreme Court described Congress’ oversight power by

stating that the ‘‘power of the Congress to conduct investigations

is inherent in the legislative process. That power is broad.’’ The Supreme Court also observed that ‘‘a legislative body cannot legislative wisely or effectively in the absence of information respecting

the conditions which the legislation is intended to affect or change.’’

The fact is that the annual appropriations process is so time-consuming has led to neglect of the authorization process, where most

programmatic oversight is conducted. As a result, large portions of

the discretionary federal budget are left unauthorized each year.

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The programs which receive taxpayer’s dollars to function each

year are not receiving the careful scrutiny that they should from

the committees in Congress with the greatest expertise. Every year

the Congressional Budget Office (CBO) generates a thick report

identifying the programs that are operating without current authorization. In fiscal year 2001, $112 billion in appropriations were

provided for 112 federal programs whose authorizations had expired.

H.R. 981 converts the annual budget and appropriations process

to a biennial or two-year cycle. Biennial budgeting would divide

each Congress into a budget year and an authorization year. In

that second year, the legislative branch could more effectively use

the authorization process to inspect, examine and review the executive branch and its agencies. Increased oversight will also contribute to more appropriate funding decisions in biennial appropriations bills and deliberative consideration of any necessary supplemental or recission legislation.

In its report to Congress, the Joint Committee on the Organization of Congress recommended that the Budget Committees ‘‘use

the second year of each biennium to study issues with long-term

budgetary and economic implications which would include holding

hearings to receive testimony from committees of jurisdiction to

identify problem areas and to report on the results of oversight;

and by January 1 of each odd-numbered year, issuing a report to

the Speaker which identifies the key issue facing the Congress in

the next biennium.’’ This provision is included in H.R. 981.

THE BENEFITS OF BIENNIAL BUDGETING—INCREASING STABILITY AND

PREDICTABILITY IN FEDERAL FUNDING

A major source of budgetary uncertainty at the state level is the

result of matters involving federal action. In addition, under the

annual budget process, individuals and nonprofits receiving government benefits or paying government fees may not know from year

to year exactly what level of resources will be available to them.

Biennial budgeting will provide more predictability for those

served by federal funding and those who administer it. Under a biennial budget, states, localities and private organizations will become more efficient in the long-term planning and management of

their programs due to more predictable federal funding streams.

For those citizens who are served by federal programs, biennial

budgeting will provide more predictability and peace of mind.

Biennial budgeting will strengthen fiscal management. Given the

enactment of the Government Performance and Results Act, the

Chief Financial Officers Act, the Government Management Reform

Act, and the Information Technology Management Reform Act, a

biennial budget process would be a logical next step in promoting

long-term planning, and improving the efficiency of government

and the use of taxpayer dollars.

Some charge that there is too much uncertainty to project for a

two-year period. CBO’s analyses indicate the opposite is true: most

federal funding is predictable anyway. A CBO study indicates that

only 5.6% of discretionary spending in FY 2001 ($36 billion of the

$642 billion appropriated) required annual funding due to volatile

spending patterns. Additionally, from 1997 to 1998 (the last time

period for which data is currently available), 70% of the 872 discreVerDate 11-MAY-2000 09:54 Nov 16, 2001 Jkt 099006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR200P2.XXX pfrm07 PsN: HR200P2
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tionary spending accounts changed less than 10%. Those few programs that do change (most of which relate to international or

emergency activities) can be accommodated during the normal supplemental appropriations process.

STATE EXPERIENCE WITH BIENNIAL BUDGETING

Since 1980, four states have switched from an annual cycle to a

biennial cycle or a partial biennial cycle. Currently, more than

twenty states operate under biennial budgets, providing ample

precedent for the two-year budget cycle. While significant differences exist between the Federal budget and state budgets, this

Committee believes that the experience of states can provide valuable insights for the Federal government, including specific implementation strategies. The most important lesson from the states’ experience with biennial budgeting is that the degree and nature

of any power shift that occurs has more to do with the political culture of a state than with the actual nature of a state’s budget process. In addition, a 1988 study conducted by Texas A&M University

for the State government of Texas found that biennial budgeting

did not result in increased micromanagement of programs by the

legislatures but, the legislatures did retain a significant influence

over the flow of funds throughout the state budget.

ADDITIONAL ISSUES

H.R. 981 does not shift power to the executive branch. Some

changes will occur in the current roles played by both the executive

and the legislative branches in the budget process. However, these

changes will not result in massive shifts of power but rather will

allow the legislative branch to more efficiently exercise its constitutional oversight responsibility. Congress will continue to decide,

down to the account level, the exact amount of spending in every

appropriation bill just as is done under current law. Under a biennial appropriations process, agencies would not be given a lump

sum of money, even at the account level, to spend over a two-year

period. Rather, Congress will appropriate a separate individual

sum for each of the two fiscal years covered by the biennial appropriation bill. Additionally, the President will be able to spend only

the amount that Congress has provided in each of those years and

all of the current mechanisms and procedures for moving funds between accounts would remain in place. Also, Congress would still

exercise its significant oversight and enforcement role through the

reprogramming authority of the House and Senate Appropriations

Committees. Finally, it should be remembered that biennial appropriations, like the current annual appropriations process, cover

only one-third of the Federal budget, since two-thirds of the budget

is considered mandatory spending and is not under Congress’ annual control.

H.R. 981 will not lock Congress into policy decisions that will

need to be changed as a result of changing circumstances.—Biennial

budgeting does not mean that Congress and the President cannot

appropriate money or modify previous appropriations during the

second year. The supplemental appropriations process would still

exist and would continue to be used. If biennial budgeting and appropriations were combined with a mechanism to budget in advance for emergencies and unintended contingencies, a biennial

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budgeting process would be more than able to respond to these unpredictable situations.

H.R. 981 will not necessarily lead to an increase in the size and

number of supplemental appropriations.—It is important to remember that supplemental appropriation bills will always be a part of

the budget process. Supplemental appropriations bills are vehicles

used by Congress and the President to reconcile the current fiscal

year’s budget with the nation’s current needs and priorities.

Whether biennial budgeting will increase or decrease the number

of supplementals is an open question, but since there has been one

or more every year since the adoption of the Budget Act in 1974

(see Table 3), everyone can agree that there will always be at least

one supplemental.

TABLE 3.—SUPPLEMENTAL APPROPRIATIONS, FISCAL YEARS 1974–2001

[Dollars in millions]

Fiscal year

Number of

supplemental

bills

Amount of

budget authority

1974 ................................................................................................................................................. 5 $14,796

1975 ................................................................................................................................................. 7 27,587

1976 ................................................................................................................................................. 5 24,636

1977 ................................................................................................................................................. 5 49,482

1978 ................................................................................................................................................. 8 8,219

1979 ................................................................................................................................................. 2 13,784

1980 ................................................................................................................................................. 5 19,575

1981 ................................................................................................................................................. 3 12,461

1982 ................................................................................................................................................. 4 21,020

1983 ................................................................................................................................................. 2 22,654

1984 ................................................................................................................................................. 4 16,357

1985 ................................................................................................................................................. 3 14,804

1986 ................................................................................................................................................. 3 8,191

1987 ................................................................................................................................................. 2 9,370

1988 ................................................................................................................................................. 2 1,310

1989 ................................................................................................................................................. 1 3,295

1990 ................................................................................................................................................. 2 2,039

1991 ................................................................................................................................................. 3 19,786

1992 ................................................................................................................................................. 1 2,806

1993 ................................................................................................................................................. 3 9,848

1994 ................................................................................................................................................. 2 7,822

1995 ................................................................................................................................................. 2 ¥9,847

1996 ................................................................................................................................................. 6 1,523

1997 ................................................................................................................................................. 1 1,670

1998 ................................................................................................................................................. 5 3,409

1999 ................................................................................................................................................. .................... ....................

2000 ................................................................................................................................................. .................... ....................

2001 ................................................................................................................................................. .................... ....................

Under biennial budgeting, instead of guaranteeing that Congress

will consider 18 budget-related bills (13 appropriations bills, 1

budget resolution, and on average, 3 supplemental bills), Congress

may only consider 3 bills in off-budgeted years. All supplemental

bills in a biennial budgeting system will be subject to the same

budgetary constraints that currently exist; while many argue that

these constraints should be tighter, biennial budgeting in no way

weakens the existing constraints of our budget laws. In fact, it

could be argued that with a longer planning horizon we can meet

enforcement targets every two years instead of year to year as with

the current budget system. The bottom line is that the existing annual budget process does not always function the way in which it

was intended. Similar problems will occur with biennial budgeting

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but the opportunities for the process not to work as promised will

be less frequent because we will be opening up the whole process

half as much.

It is not difficult to budget two years in advance.—The Committee would note that under the current budget process, many advance projections already are done for a much longer period than

just two years—most often for 5 or 10 years. According to the Office of Management and Budget, second year numbers and projections are not only as precise as those for the current fiscal year but

they also serve as ceilings for the next year’s budget requests. Both

the President and the Congress are already required to prepare

multi-year budgets.

Nothing in the biennial budget proposal (or in the existing annual process) states that Congress and the President cannot revisit

a budgetary decision. Section 304 of the Budget Act currently allows for revisions to any already agreed to budget resolution when

necessary. Biennial budgeting would in no way interfere with the

use and availability of this fail-safe mechanism. In addition, the biennial budgeting process retains the ability to revisit prior budgetary decisions, to exercise corrective action to provide a great deal

of budgetary enforcement in that, the budget situation would have

to be universally recognized as a problem, in order to utilize the

revision process.

Under H.R. 981, the Congressional Budget Office is required to

provide quarterly reports to the Budget Committees comparing the

assumptions of the levels of revenues and spending included in the

budget resolution to reality. In addition, the Office of Management

and Budget must provide regular six-month reports on the current

state of the budget.

H.R. 981 will not reduce Congressional control over Federal agencies. The concern that Congress would relinquish control over Federal agencies assumes that the appropriations process is the only

way in which Congress can exercise control over agencies. While

use of the appropriations process to keep federal agencies in check

is very important, it is only one of the ways Congress can oversee

federal agencies’ spending. Under our current process, the appropriations committees are treated as the first string of the team and

the authorization committees as bench players.

The authorization committees must be integrated into the first

team as both authorizers and appropriators play an important and

distinct role in the budget process. If the authorization process is

more vigorous and committees are more active in their programmatic oversight, Congress will play an even greater role in

controlling not just the funding of agencies but their overall operations and policies as well.

More long term budget planning will result in more long term

control over federal agencies, not only fiscally, but from a policy

standpoint as well.

HISTORY OF BIENNIAL BUDGETING LEGISLATION

1974 (93rd Congress)—The Congressional Budget Act of 1974 required the Congressional Budget Office (CBO) to issue a report on

the ‘‘feasibility and advisability’’ of budgeting and appropriating a

full year in advance.

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1977 (95th Congress)—In response to 1974 directive, CBO issued

‘‘Advance Budgeting: A Report to Congress.’’ This included a study

of two-year appropriations, and concluded that if ‘‘committees did

not have to spend so much time each year on routine ‘budgetary’

matters, they would in fact have more time for their oversight

work. * * *’’ A parallel report made in 1977 by the Office of Management and Budget, entitled ‘‘A Study of the Advisability of Submitting the President’s Budget and Enacting Budget Authority in

Advance of the Current Timetable,’’ also advocated the concept of

multi-year budgeting, on the grounds that, ‘‘Both the President and

Congress will reap significantly greater benefits from multi year

budgeting. * * *’’ Also in 1977, Representative Panetta introduced

the first legislation to establish a biennial budget process. Panetta’s

legislation, the Biennial Budget Act, sought to create a two-year

budget process devoted in the first year to oversight of Executive

branch agencies.

1979 (96th Congress)—Representative Panetta again introduced

a biennial budget bill. In the Senate, Senator Bumpers introduced

a resolution directing a study of the feasibility of a biennial budget.

No action was taken on either bill.

1981–82 (97th Congress)—Four bills (Ford, Roth, Cochran, and

Quayle) to establish a biennial budget process were introduced in

the Senate. Representative Panetta again sponsored a House bill.

In 1981, biennial budgeting was discussed during Government Affairs Committee hearings on the Congressional Budget and Impoundment Act of 1974. Separate hearings on Senator Roth’s biennial budget bill also were held by the Committee.

1983–84 (98th Congress)—Several biennial budget bills were

again introduced. Governmental Affairs held hearings on Senator

Roth’s bill. Also in 1984, the Temporary Select Committee to Study

the Senate Committee System recommended that a select committee be established to study the feasibility of biennial budgeting.

No committee was formed.

1985–86 (99th Congress)—The FY 1986 Defense Authorization

bill included an amendment proposed by Senator Nunn to, among

other things, require the President to submit two-year budget proposals for the Defense Department. The provision was retained

through conference, and the conferees expressed their belief that a

biennial budget would ‘‘substantially improve DOD management

and congressional oversight.’’ They further indicated that it was

preferable for all Federal spending to be under a two-year system.

While DOD submits a two-year budget, Congress continues with

the annual cycle—so the long-term planning benefit is still not realized.

1987–88 (100th Congress)—President Reagan and congressional

leadership approved the Budget Summit Agreement, setting specific funding totals for domestic, international, and defense discretionary spending for FY 1988 and VY 1989. Longstanding supporters of biennial budgeting note that the ‘‘biennial character’’ of

the summit agreement demonstrates that the time had come to

move to a two-year budget cycle. The Balanced Budget and emergency Deficit Control Act of 1987 directed the appropriate congressional committees to develop a plan to experiment with multi-year

authorization and appropriations.

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1989–90 (101st Congress)—As Chairman of the Governmental

Affairs Committee, Senator John Glenn held hearings and ordered

favorable reported S. 29 (sponsored by Senators Ford, Roth and

Domenici) providing for a two-year budget resolution and appropriations. The bill was not taken up by the full Senate.

1993–94 (103rd Congress)—Senators Boren and Domenici in

1994 introduced S. 1824 to implement the recommendations of the

Joint Committee on the Organization of Congress, which included

a provision to shift to a biennial budget cycle. The bill reported by

the Rules Committee as an outgrowth of the Joint Committee’s included the provision for biennial budget and appropriations. Senator Domenici offered the Joint Committee’s legislative recommendations as an amendment to the District of Columbia Appropriations bill. Senator Byrd raised a point of order under section

306 of the Budget Act, and the Senate voted 58 to 41 in favor of

the motion to waive the Budget Act with respect to consideration

of the amendment. Since the motion did not gain the 60 votes necessary, the amendment failed.

1995–96 (104th Congress)—Four bills providing for a biennial

cycle were introduced. In July 1996, Senator Fred Thompson,

Chairman of the Financial Management and Accountability Subcommittee of the Governmental Affairs Committee, held a hearing

on biennial budgeting. In September 1996, Senator Thompson introduced a biennial budget bill (S. 2049), emphasizing the need to

provide Members of Congress with time for increased legislative

oversight and time at home.

1997–1998 (105th Congress)—One bill, S. 261, was introduced by

Senator Domenici on February 4, 1997. On February 13, 1997 the

Budget Committee held a hearing on S. 261. On April 23, 1997

Senator Thompson held a full Governmental Affairs Committee

Hearing on S. 261. On May 22, 1997, the Governmental Affairs

Committee ordered to be reported S. 261, with an amendment in

the nature of a substitute, and the bill was reported to the Senate

on September 4, 1997. On October 6, 1997 the Senate Committee

on Budget discharged S. 261 and it was placed on Senate Legislative Calendar under General Orders. No further action was taken.

1999–2000 (106th Congress)—During the 106th Congress, no less

than four biennial budgeting bills were introduced in the House of

Representatives. Each of these bills were referred to the Committee

on Rules and the Committee on the Budget. In addition, 245 Members signed onto a sense of the House resolution (H. Res. 396) calling for the enactment of a biennial budget process in the second

session of the 106th Congress. Accordingly, the Committee held a

series of lengthy hearings to examine proposals from various Members of Congress, the Executive Branch, and outside experts on establishing a two-year budget and appropriations cycle in an effort

to develop consensus legislation that would streamline the budget

process, enhance programmatic oversight, strengthen the management of government programs and bureaucracies, and reform Congress. These hearings laid the groundwork for a bipartisan biennial

budgeting amendment during floor consideration of H.R. 853, the

Comprehensive Budget Process Reform Act. This amendment was

narrowly defeated on May 16, 2000, by a record vote of 201 to 217.

The House also defeated the broader bill, but by a much larger

margin.

12

COMMITTEE CONSIDERATION

At the beginning of the 107th Congress, Representative Charles

Bass of New Hampshire, a Member of the House Budget Committee, introduced H.R. 981, which was referred to the Committee

on the Budget and in addition to the Committee on Rules and the

Committee on Government Reform.

On July 25, 2001, the Rules Subcommittee on Legislative and

Budget Process held a hearing on biennial budgeting. Mitchell E.

Daniels, Jr., Director of the Office of Management and Budget,

noted that ‘‘This idea [biennial budgeting] has had the support of

at least two Administrations and Members of Congress from both

parties. We should not spend a whole lot more time talking about

the pros and cons * * *. Let’s make this the year we finally act on

this reform proposal’’. The Committee heard testimony from the following Members of

Congress: Representatives Charles F. Bass (R–NH), Bill Luther (D– MN), Bob Clement (D–TN) [testimony submitted for the record],

Joe Barton (R–TX), David L. Hobson (R–OH), Joe Knollenberg (R– MI), David E. Price (D–NC), and James T. Walsh (R–NY).

On August 3, 2001, the Budget Committee reported a substitute

version of H.R. 981 out of Committee by voice vote. The Budget

Committee’s version would create a Commission on Federal Budget

Concepts to study the idea of biennial budgeting, among other

things.

On November 1, 2001, the Rules Committee met in open session

and ordered favorably reported the bill H.R. 981, with amendment,

by voice vote, a quorum being present.

The bill was discharged from the House Committee on Government Reform on November 9, 2001, after its referral expired.

SECTION-BY-SECTION SUMMARY

Section 1. Findings

States the title of the legislation, the ‘‘Biennial Budgeting and

Efficiency Act of 2001,’’ and outlines nine congressional findings on

the budget process and biennial budgeting.

Section 2. Revision of timetable

Amends section 300 of the Congressional Budget and Impoundment Control Act of 1974 to revise the timetable of the congressional budget process to reflect a biennial budget schedule. The

first session of any Congress is primarily devoted to the consideration of the budget resolution, the regular appropriations bill, and

any necessary reconciliation legislation. In general, the revised

timetable is similar to the current timetable except that most of

the milestones only apply to the first session of a Congress. The

timetable is modified to extend the deadline for completion of the

biennial budget resolution to May 15th. The revised timetable contains only three deadlines for the second session: (1) the President

must submit a mid-biennium budget review to Congress by February 15th; (2) the Congressional Budget Office must submit its

annual report to the Budget Committees of the House and the Senate no longer than six weeks after the President submits the budget review; and (3) Congress must complete action on bills and resolutions authorizing new budget authority for the succeeding bienVerDate 11-MAY-2000 09:54 Nov 16, 2001 Jkt 099006 PO 00000 Frm 00012 Fmt 6659 Sfmt 6602 E:\HR\OC\HR200P2.XXX pfrm07 PsN: HR200P2
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nium by the last day of the session. This section also creates a new

section 300(b) of the Budget Act that establishes a special timetable for the submission and consideration of a budget in the case

of any first session of Congress that begins in any year during

which the term of a President (except a President who succeeds

himself) begins. Generally, the budget deadlines are extended by 6

weeks to give a new President more time to prepare and submit

the budget.

Section 3. Amendments to the Congressional Budget and Impoundment Control Act of 1974

Section 3(a) amends section 2(2) of the Budget Act relating to the ‘‘Declaration of Purposes’’ of the Budget Act to account for the congressional determination biennially of the appropriate level of Federal revenues and expenditures.

Section 3(b)(1) amends the definition of a budget resolution in

section 3(4) of the Budget Act to reflect its application to a biennium as opposed to a fiscal year.

Section 3(b)(2) amends section 3 of the Budget Act by adding a

new paragraph (13) to define the term biennium as ‘‘the period of

two consecutive fiscal years beginning on October 1 of any oddnumbered year.’’ Section 3(c) amends the Budget Act to make the budget resolution a biennial concurrent resolution on the budget.

Section 3(c)(1) amends section 301(a) of the Budget Act regarding

the required contents of the budget resolution to conform its application to the biennium beginning on October 1 of each odd-numbered year and its consideration tothe biennial timetable for completion, which is by May 15 of each odd-numbered year.

Section 3(c)(2) amends section 301(b) of the Budget Act to ensure

that the additional matters which may be included in the budget

resolution apply to a biennium.

Section 3(c)(3) amends section 301(d) of the Budget Act to conform the submission of committee views and estimates to the Budget Committees to a biennial cycle.

Section 3(c)(4) amends section 301(d) of the Budget Act to conform the requirements of the Budget Committee’s hearings on the

budget and the Budget Committee’s reporting of the budget resolution to a biennial schedule. The House Budget Committee would report a biennial budget resolution by April 1st of each odd-numbered year.

Section 3(c)(5) amends section 301(f) of the Budget Act relating

to the achievement of goals for reducing unemployment to conform

it to a biennial cycle.

Section 3(c)(6) amends section 301(g)(1) of the Budget Act to conform the provisions relating to the economic assumptions of the

budget resolution to a biennial schedule.

Sections 3(c)(7) and (8) amend section 301 to make conforming

changes to the section heading and the table of contents of the

Budget Act.

Section 3(d) amends section 302(a) of the Budget Act, regarding

committee allocations in the budget resolution, to require the conference report on a budget resolution to include an allocation of

budget authority and outlays to each committee for each year in

the biennium and the total of all fiscal years covered by the resoluVerDate 11-MAY-2000 09:54 Nov 16, 2001 Jkt 099006 PO 00000 Frm 00013 Fmt 6659 Sfmt 6602 E:\HR\OC\HR200P2.XXX pfrm07 PsN: HR200P2
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tion as well as makes conforming change to subsections (f) and (g)

of section 302 to reflect a biennial cycle and the biennial timetable.

Section 3(e)(1) amends section 303(a) of the Budget Act, which

prohibits consideration of legislation, as reported, providing new

budget authority, changes in revenues, or changes in the public

debt for a fiscal year until the budget resolution for that year has

been agreed to, to reflect the application of the budget resolution

to a biennium.

Section 3(e)(2) amends section 303(b) of the Budget Act relating

to the exceptions in the House of Representatives from the application of this point of order, to account for a biennial budget cycle.

The application of these exceptions are also amended to reflect the

special biennial timetable utilized during the first term of a new

President.

Section 3(e)(3) amends section 303(c)(1) of the Budget Act to conform the application of this point of order in the Senate to a biennial budget cycle.

Section 3(f) amends section 304 of the Budget Act, regarding permissible revisions of budget resolutions, to conform to the biennial

budget cycle. This subsection maintains current law which allows

Congress to revise the budget resolution at any time during the biennium.

Section 3(g) amends section 305(a)(3) of the Budget Act, relating

to the procedures for consideration of the budget resolution, to conform references to the budget resolution to account for its application to a biennium.

Section 3(h) amends section 307 of the Budget Act to conform the

timetable for completing House Appropriations Committee action

on regular appropriations bills by June 10 to a biennial cycle. This

section also makes conforming amendments to reflect the special

biennial timetable utilized during the first term of a new President.

Section 3(i) amends section 308 of the Budget Act to require the

Congressional Budget Office to file quarterly budget reports with

the House and Senate Budget Committees. These reports are to

compare revenues, spending, and the deficit or surplus for the current fiscal year with the assumptions used in the congressional

budget resolution. CBO is also required to make the reports available to other interested parties upon request. These reports will enable the Congress to compare actual budget results to earlier estimates. The frequent periodic reports by CBO on the progress of fiscal policy and economic developments since action on the budget

resolution will inform the Congress about current status of the

budget and its earlier underlying projections by using updated projections and actual budget figures to date. The reports can also

serve to facilitate additional reconciliation legislation (between biennial budget resolutions) as necessary due to changes in the economy or policy emphasis.

Section 3(j) amends section 309 of the Budget Act to conform the

timetable for completion of all House action on the regular appropriation bills before the House adjourns for more than three calendar days during the month of July. This section also makes conforming amendments to reflect the special biennial timetable utilized during the first term of a new President.

Section 3(k) amends section 310 of the Budget Act to conform the

reconciliation process to a biennial budget cycle. It also strikes subVerDate 11-MAY-2000 09:54 Nov 16, 2001 Jkt 099006 PO 00000 Frm 00014 Fmt 6659 Sfmt 6602 E:\HR\OC\HR200P2.XXX pfrm07 PsN: HR200P2
15

section (f) which currently prohibits the House from adjourning for

more than 3 calendar days during the month of July until all required reconciliation legislation is completed. This is necessary to

reflect the budget resolution’s application to the biennium and the

possibility of considering reconciliation legislation during the second session.

Sections 3(l)(1) and (2) amend section 311(a)(1) and (2) of the

Budget Act respectively, to prohibit consideration in the House or

Senate of any legislation that would cause the total levels of budget

authority or total levels of outlays to be exceeded or that would

cause the total level of revenues to be less than those levels set

forth in the most recently agreed to budget resolution for either fiscal year of the biennium or for the total of each fiscal year in the

biennium and the ensuing fiscal years for which allocations are

provided in the budget resolution.

Section 3(l)(3) amends section 311(a)(3) of the Budget Act to conform the point of order in the Senate against any legislation that

would cause a decrease in the Social Security levels set forth in the

budget resolution for a biennial budget cycle.

Section 3(m) amends section 312(c) of the Budget Act to conform

the Senate’s maximum deficit amount point of order for a biennial

budget cycle.

Section 4. Amendments to the Rules of the House of Representatives

Section 4(a) amends clause 4(a)(1)(A) of rule X of the Rules of the

House of Representatives, relating to the required Appropriations

Committee hearings on the President’s budget submission, to conform to the biennial timetable.

Section 4(b) amends clause 4(a)(4) of rule X of the Rules of the

House, relating to the suballocations of the Appropriations Committee, to conform to a biennial budget resolution.

Section 4(c) amends clause 4(b)(2) of rule X of the Rules of the

House, relating to the Budget Committee’s hearings on the budget,

to conform to a biennial budget resolution.

Section 4(d) amends clause 4(b) of rule X of the Rules of the

House to add a new subparagraph (7), to require the House Budget

Committee to use the second session of each Congress to study

issues with long-term budgetary and economic implications, including holding hearings and receiving testimony from committees of

jurisdiction to identify problem areas and to report on the results

of their oversight activities. The Budget Committee should issue to

the Speaker by January 1 of each odd-numbered year a report

identifying the key issues facing the Congress in the next biennium.

Section 4(e) amends clause 11(i) of rule X of the Rules of the

House, relating to the duties of the Permanent Select Committee

on Intelligence, to conform to a biennial cycle.

Section 4(f) amends clause 4(e) of rule X of the Rules of the

House, relating to the duties of the standing committees of the

House to maximize annual appropriations for the programs and

actives within their jurisdictions, to establish a new preference of

biennial appropriations.

Section 4(g) amends clause 4(f) of rule X of the Rules of the

House, relating to the Budget Act responsibilities of the standing

committees of the House, to conform to a biennial timetable.

16

Section 4(h) amends clause 3(d)(2)(A) of rule XIII of the Rules of

the House, relating to committee cost estimates, to conform to a biennial timetable.

Section 4(i) amends clause 5(a)(1) of rule XIII of the Rules of the

House, relating to privileged reports from the Appropriations Committee, to conform to a biennial timetable.

Section 5. Amendments to Title 31, United States Code

Section 5(a) amends section 1101 of Title 31 to define the term

biennium as ‘‘the period of two consecutive fiscal years beginning

on October 1 of any odd-numbered year.’’ This is the same definition given such term in paragraph (11) of section 3 of the Budget

Act.

Section 5(b)(1) amends section 1105 of Title 31 to require that on

or before the first Monday in February of each odd-numbered year

(or, if applicable, as provided by section 300(b) of the Budget Act),

the President shall transmit to Congress, the budget for the biennium beginning on October 1 of such calendar year. The President

must include a budget message and summary and supporting information with the budget submission.

Section 5(b)(2) amends section 1105(a)(5) of Title 31 to conform

the required contents of the budget submission with respect to expenditures to account for a biennial budget cycle.

Section 5(b)(3) amends section 1105(a)(6) of Title 31 to conform

the required contents of the budget submission with respect to receipts to account for a biennial budget cycle.

Section 5(b)(4) amends section 1105(a)(9)(C) of Title 31 to conform the required contents of the budget submission with respect

to balance statements to account for a biennial budget cycle.

Section 5(b)(5) amends section 1105(a)(12) of Title 31 to conform

the required contents of the budget submission with respect to government functions and activities to account for a biennial budget

cycle.

Section 5(b)(6) amends section 1105(a)(13) of Title 31 to conform

the required contents of the budget submission with respect to allowances to account for a biennial budget cycle.

Section 5(b)(7) amends section 1105(a)(14) of Title 31 to conform

the required contents of the budget submission with respect to allowances for unanticipated and uncontrollable expenditures to account for a biennial budget cycle.

Section 5(b)(8) amends section 1105(a)(16) of Title 31 to conform

the required contents of the budget submission with respect to tax

expenditures to account for a biennial budget cycle.

Section 5(b)(9) amends section 1105(a)(17) of Title 31 to conform

the required contents of the budget submission with respect to estimates for future fiscal years to account for a biennial budget cycle.

Section 5(b)(10) amends section 1105(a)(18) of Title 31 to conform

the required contents of the budget submission with respect to

prior year outlays to account for a biennial budget cycle.

Section 5(b)(11) amends section 1105(a)(19) of Title 31 to conform

the required contents of the budget submission with respect to

prior year receipts to account for a biennial budget cycle.

Section 5(c) amends section 1105(b) of Title 31, regarding estimated expenditures and proposed appropriations for the legislative

17

and judicial branches, to required the submission of these proposals

to the President by October 16th of even-number years.

Section 5(d) amends section 1105(c) of Title 31, regarding the

President’s recommendations if there is a proposed deficit or surplus, to conform to a biennial budget cycle.

Section 5(e) amends section 1105(e)(1) of Title 31, regarding capital investment analyses, to conform to a biennial budget cycle.

Sections 5(f)(1) and (2) amend section 1106(a) and (b) of Title 31

respectively, relating to the President’s submission of supplemental

budget estimates and changes, ton conform to a biennial budget

cycle. The President is still rerquired to submit a Mid-Session Review of the budget by July 16 of each year as well as will now be

required to also submit a Mid-Biennium Review on or before February 15 of each even numbered year.

Section 5(g)(1) amends section 1109(a) of Title 31, regarding the

President’s submission of current program and activity estimates,

to conform to a biennial budget cycle and require its submission

with the overall budget submission for each odd-numbered year as

required by section 1105.

Section 5(g)(2) amends section 1109(b) of Title 31, regarding the

Joint Economic Committee’s analysis of the President’s current program and activity estimates, to require the Joint Economic Committee to submit an economic evaluation of such estimates to the

Budget Committee as part of its views and estimates within 6

weeks of the President’s budget submission for each odd-numbered

year.

Section 5(h) amends section 1110 of Title 31, regarding advance

requests for authorization legislation to require the President to

submit requests for authorization legislation by March 31st of

even-numbered years.

Section 6. Two-year appropriations; title and style of appropriations

acts

Section 6 amends section 105 of Title I of the U.S. Code to conform the statutory style and definition of appropriations Acts to require that they cover each of two fiscal years of a biennium.

Section 7. Multi-year authorizations

Section 7(a) amends Title III of the Budget Act by adding a new

section 318 that establishes a new point of order in the House and

Senate against the consideration of any bill, joint resolution,

amendment, motion or conference report that does contains a specific authorization of appropriations for any purpose for less than

each fiscal year in one or more bienniums. This prohibition does

not apply to an authorization of appropriations for a single fiscal

year for any program, project or activity if the measure (defined as

a bill, joint resolution, amendment, motion or conference report)

containing that authorization includes a provision expressly stating

the following: ‘‘Congress finds that no authorization of appropriation will be required for [Insert name of applicable program,

project, or activity] for any subsequent fiscal year.’’ It further defines a specific authorization of appropriations as an authorization

for the enactment of an amount of appropriations or amounts not

to exceed an amount of appropriations (whether stated as a sum

18

certain, as a limit, or as such sums as may be necessary) for any

purpose for a fiscal year.

Section 8. Government strategic and performance plans on a biennial basis

Section 8 amends the Government and Performance and Results

Act of 1993 (the Results Act) to incorporate GPRA into the biennial

budget cycle. The Results Act requires federal agencies to develop

strategic plans, performance plans, and performance reports. Strategic plans set out the agencies’ missions and general goals. Performance plans lay out the specific quantifiable goals and measures. Performance reports compare actual performance with the

goals of past performance plans. The Results Act currently requires

federal agencies to consult with congressional committees as they

develop their strategic plans. The Results Act requires all federal

agencies to submit their strategic and performance plans to the Office of Management and Budget, along with their budget submissions, by September 30 of each year. Finally, the Results Act requires the President to include a performance plan for the entire

government.

Sections 8(a) through (g) amend section 306 of title 5, sections

1105, 1119 and 9703 of title 31, and sections 2802 and 2803 of title

39 requires agencies to prepare strategic and performance plans

every two years, in conjunction with the President’s development of

a biennial budget. In addition, these amendments make other

changes to conform strategic and performance plans to a biennial

budget cycle.

Section 8(h) amends section 301(d) of the Budget Act to require

Congressional committees to review the strategic plans, performance plans, and performance reports of agencies in their jurisdiction. Committees may then provide their views on the agency’s

plans or reports as part of their views and estimates on the President’s budget submitted to the Budget Committees.

Section 8(i) provides that the amendments by this section shall

take effect on March 1, 2005.

Section 9. Biennial appropriations bills

Section 9(a)(1) amends clause 2(a) of House Rule XXI to provide

that in the House of Representatives an appropriation may not be

reported in a general appropriation bill (other than a supplemental

appropriation bill), and may not be in order as an amendment

thereto, unless it provides a new budget authority or establishes a

level of obligations under contract authority for each fiscal year of

a biennium. It further provides that this prohibition shall not apply

with respect to an appropriation for a single fiscal year for any program, project, or activity if the bill or amendment thereto containing that appropriation includes a provision expressly stating

the following: Congress finds that no additional funding beyond one

fiscal year will be required and the [Insert name of applicable program, project, or activity] will be completed or terminated after the

amount provided has been expended. The subparagraph is further

amended to provide that such a statement shall not constitute legislating on an appropriation bill if it is included with an appropriation for a single fiscal year for any program, project, or activity.

19

Section 9(a)(2) amends clause 5(b)(1) of House Rule XXII to apply

similar prohibitions against appropriation conference reports.

Section 9(b)(1) amends Title III of the Congressional Budget Act

of 1974 to add a new section 319 to create a point of order in the

Senate against consideration in any odd-numbered year of any regular appropriation bill providing new budget authority or a limitation on obligations under the jurisdiction of the Committee on Appropriations for only the first fiscal year of a biennium, unless the

program, project, or activity for which the new budget authority or

obligation limitation is provided will require no additional authority beyond one year and will be completed or terminated after the

amount provided has been expended.

Section 9(b)(2) amends section 1(b) of the Budget Act to conform

the table of contents of the Budget Act to account for this new section 319.

Section 10. Assistance by Federal agencies to standing committees

of the House of Representatives and the Senate

Section 10(a) requires the head of each Federal agency under the

jurisdiction of a standing committee to provide to the committee

those studies, information, analyses, reports, and assistance as

may be requested by the chairman and ranking minority member

of the committee.

Section 10(b) requires the head of each Federal agency to furnish

to such committee documentation containing information received,

compiled, or maintained by the agency as part of the operation or

administration of a program, or specifically compiled pursuant to a

request in support of a review of a program, as may be requested

by the chairman and ranking minority member of such committee.

Section 10(c) requires that, within 30 days after the receipt of a

request from a chairman and ranking minority member of a standing committee having jurisdiction over a program being reviewed,

the Comptroller General furnish to the committee summaries of

any audits or reviews of such program the Comptroller General has

completed during the preceding six years.

Section 10(d) reaffirms the role of the Comptroller General, the

Director of the Congressional Research Service, and the Director of

the Congressional Budget Office to furnish (consistent with established protocols) to each standing committee of the House and Senate such information, studies, analyses, and reports as the chairman and ranking minority member may request to assist the committee in conducting reviews and studies of programs under its jurisdiction.

Section 11. Report on two-year fiscal period

Requires that, not later than 180 days after the enactment of

this Act, the Director of OMB shall determine the impact of changing the definition of a fiscal year and the budget process based on

that definition to a 2 year fiscal period with a biennial budget process based on the 2 year period, and shall report his findings to the

Committee on Budget in the House and Senate and the Committee

on Rules in the House.

20

Section 12. Special transition period for the 107th Congress

Section 12(a) requires the President to include in the FY 2004

budget submission an identification of the budget accounts for

which an appropriation should be made for each fiscal year of the

FY 2004–2005 biennium and any necessary budget authority that

should be provided for each such fiscal year for those identified

budget account.

Section 12(b) requires the Appropriations Committees of each

House to review the President’s recommendations and include an

assessment of those recommendations and any recommendations of

their own in the committee’s overall views and estimates on the

President’s budget which they are required to submit to their respective Budget Committees.

Section 12(c)(1) requires the Budget Committees of each House

to review the recommendations of both the President and the Appropriations Committees with respect to those budget accounts that

should be funded for the biennium.

Section 12(c)(2) requires the report of the Committee on the

Budget of each House and the joint explanatory statement of the

managers accompanying the budget resolution for FY 2004 to include an allocation to the Appropriations Committees for FY 2005

from which the Appropriations Committee can fund certain accounts in the FY 2004 appropriation bills for each of the fiscal

years in the FY 2004–2005 biennium.

Section 12(c)(3) requires the report of the Committee on the

Budget of each House and the joint explanatory statement of the

managers accompanying the budget resolution for FY 2004 to include the assumptions upon which the allocation to the Appropriations Committees for FY 2005 is made.

Section 12(d)(1) directs the GAO to work with the Committees of

Congress during the first session of 108th Congress to develop

plans to transition program authorizations to a multi-year schedule.

Section 12(d)(2) requires GAO to continue to provide assistance

to the Congress with respect to programmatic oversight and in particular to assist committees in designing and conforming programmatic oversight procedures for the Fiscal Year 2005–2006 biennium.

Section 12(e) provides for a CBO report to Congress (before January 15, 2004) listing all those programs and activities that were

funded during FY 2004 with no authorization and all those programs and activities whose authorizations will expire during that

fiscal year, FY 2005 and FY 2006.

Section 12(f) requires the President’s budget submission for FY

2005 to include an evaluation of an recommendations regarding the

transitional biennial budget process for the fiscal year 2004–2005

biennium.

Section 12(g) requires CBO to issue a report on or before March

31, 2004 include an evaluation of an recommendations regarding

the transitional biennial budget process for the fiscal year 2004–

2005 biennium.

Section 13. Effective date

Except as provided by sections 8, 11 and 12, the Act is effective

January 1, 2005, and applicable to budget, authorization and apVerDate 11-MAY-2000 09:54 Nov 16, 2001 Jkt 099006 PO 00000 Frm 00020 Fmt 6659 Sfmt 6602 E:\HR\OC\HR200P2.XXX pfrm07 PsN: HR200P2
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propriations legislation for the biennium beginning with fiscal year

2006.

MATTERS REQUIRED UNDER THE RULES OF THE HOUSE

COMMITTEE VOTE

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee Report to include for each record vote

on a motion to report the measure or matter and on any amendments offered to the measure or matter, the total number of votes

for and against, and the names of the Members voting for and

against. No rollcall votes were requested during consideration of

H.R. 981.

COMMITTEE COST ESTIMATE

Clause 3(d)(2) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison by the Committee of the costs that would be incurred in carrying out H.R. 981.

However, clause 3(d)(3)(B) of that rule provides that this requirement does not apply when the Committee has included in its report

a timely submitted cost estimate of the bill prepared by the Director of the Congressional Budget Office under section 402 of the

Congressional Budget Act. An estimate prepared by the Congressional Budget Office is included below.

CONGRESSIONAL BUDGET OFFICE ESTIMATE

U.S. CONGRESS,

CONGRESSIONAL BUDGET OFFICE,

Washington, DC, November 7, 2001.

Hon. DAVID DREIER,

Chairman, Committee on Rules,

House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 981, the Budget Responsibility and Efficiency Act of 2001.

If you wish further details on this estimate, we will be pleased

to provide them. The CBO staff contact is Sandy Davis.

Sincerely,

BARRY B. ANDERSON

(For Dan L. Crippen, Director).

Enclosure.

H.R. 981—Budget Responsibility and Efficiency Act of 2001

H.R. 981 would amend the Congressional Budget and Impoundment Control Act of 1974, Title 5 of the U.S. Code, other laws, and

the Rules of the House of Representatives to establish a biennial

budget cycle for the federal government. The bill would revise the

budget timetable, change the number of years covered by certain

budget legislation, and make conforming changes in various budget

rules and procedures, but would not directly affect spending or receipts. Thus, pay-as-you-go procedures would not apply. The bill

contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect

the budgets of state, local, or tribal governments.

22

H.R. 981 would establish a two-year budgeting and appropriations cycle. A biennium, defined in the bill as a period of two consecutive fiscal years beginning on October 1 of each odd-numbered

year, would become the standard fiscal period. The President’s

budget and the Congressional budget resolution would be conformed to a biennial framework, appropriation acts would be required to provide new budget authority for each fiscal year in the

upcoming biennium, and authorization laws would be required to

cover two or more fiscal years.

The budget timetable would be changed to a biennial cycle. Most

major budgetary actions—the President’s budget submission, Congressional action on the budget resolution, and the enactment of

appropriation and reconciliation legislation—would generally occur

in the first session of each Congress under a schedule that parallels

the current annual timetable. If the first session followed a year in

which a new President was elected, the bill would establish a revised budget timetable allowing more time for the President and

the Congress to develop their respective budget plans. The second

session generally would be reserved for authorization bills and

oversight by Congressional committees.

The bill also would conform reporting requirements under the

Government Performance and Results Act to the new two-year

budget cycle, and would require federal agencies to provide Congressional committees with additional information, as requested, on

the programs within the committee’s jurisdiction. The CBO Director would be required to submit quarterly budget reports comparing actual spending and revenue amounts for the current fiscal

year with the estimates for that year.

H.R. 981 would establish a special transition period, during

which the biennial budget cycle would be phased in over the 2004– 2005 biennium. The bill would require the Director of the Office of

Management and Budget, within six months of its enactment, to

evaluate the impact of the change to a biennial budget cycle. It

would also require the President, in his budget for fiscal year 2005,

and the CBO Director, in a separate report due by March 31, 2004,

to evaluate and make recommendations regarding the transitional

biennial budget process for 2004–2005. The biennial budget process

would take effect fully on January 1, 2005, for the biennium that

begins with fiscal year 2006.

The CBO staff contact for this estimate is Sandy Davis. This estimate was approved by Robert A. Sunshine, Assistant Director for

Budget Analysis.

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House

of Representatives, the Committee finds that the Constitutional authority for this legislation is provided in Article I, section 8, clause

18, which grants Congress the general legislative power to make all

laws necessary and proper for carrying into execution the enumerated powers of Congress.

FEDERAL MANDATES STATEMENT

Section 423 of the Congressional Budget Act of 1974 requires the

report of any committee on a bill or joint resolution that includes

any Federal mandate to include specific information about such

23

mandates. The Committee states that H.R. 981 does not include

any Federal mandate.

PREEMPTION CLARIFICATION

Section 423 of the Congressional Budget Act of 1974 requires the

report of any committee on a bill or joint resolution to include a

committee statement on the extent to which the bill or joint resolution is intended to preempt state or local law. The Committee

states that H.R. 981 is not intended to preempt any state or local

law.

OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII and clause (2)(b)(1)

of rule X of the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in the

body of this report.

GENERAL PERFORMANCE GOALS

In accordance with clause (3)(c)(4) of House Rule XIII, the goal

of H.R. 981 is to improve the management of Federal resources by

enhancing Congressional oversight of Federal agencies and program by reducing the time spent budgeting and appropriating

funds; reduce time spent by Federal agencies preparing and justifying their annual budgets; and create a more stable and predictable federal budget environment that allows state and local governments to better plan their own budgets.

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the

House of Representatives, changes in existing law made by the bill,

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic,

existing law in which no change is proposed is shown in roman):

CONGRESSIONAL BUDGET ACT OF 1974

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

SHORT TITLES; TABLE OF CONTENTS

SECTION 1. (a) * * *

(b) TABLE OF CONTENTS.—

Sec. 1. Short titles; table of contents.

TITLE III—CONGRESSIONAL BUDGET PROCESS

Sec. 300. Timetable.

Sec. 301. øAnnual¿ Biennial adoption of concurrent resolution on the budget.

* * * * * * *

Sec. 316. Multiyear authorizations of appropriations.

Sec. 317. Consideration of biennial appropriation bills.

* * * * * * *

DECLARATION OF PURPOSES

SEC. 2. The Congress declares that it is essential—

24

(1) to assure effective congressional control over the budgetary process;

(2) to provide for the congressional determination øeach

year¿ biennially of the appropriate level of Federal revenues

and expenditures;

* * * * * * *

DEFINITIONS

SEC. 3. IN GENERAL.—For purposes of this Act— (1) * * *

* * * * * * *

(4) The term ‘‘concurrent resolution on the budget’’ means—

(A) a concurrent resolution setting forth the congressional budget for the United States Government for a øfiscal year¿ biennium as provided in section 301; and

(B) any other concurrent resolution revising the congressional budget for the United States Government for a øfiscal year¿ biennium as described in section 304.

* * * * * * *

(11) The term ‘‘biennium’’ means the period of 2 consecutive

fiscal years beginning on October 1 of any odd-numbered year.

* * * * * * *

TITLE III—CONGRESSIONAL BUDGET PROCESS

* * * * * * *

øTIMETABLE

øSEC. 300. The timetable with respect to the congressional budget process for any fiscal year is as follows:

øOn or before: Action to be completed:

First Monday in February ................... President submits his budget.

February 15 .......................................... Congressional Budget Office submits

report to Budget Committees.

Not later than 6 weeks after President submits budget.Committees submit views and estimates to Budget Committees.

April 1 ................................................... Senate Budget Committee reports concurrent resolution on the budget.

April 15 ................................................. Congress completes action on concurrent resolution on the budget.

May 15 ................................................... Annual appropriation bills may be considered in the House.

June 10 .................................................. House Appropriations Committee reports last annual appropriation bill.

June 15 .................................................. Congress completes action on reconciliation legislation.

June 30 .................................................. House completes action on annual appropriation bills.

October 1 ............................................... Fiscal year begins.¿

TIMETABLE

SEC. 300. (a) IN GENERAL.—Except as provided by subsection (b),

the timetable with respect to the congressional budget process for

any Congress (beginning with the One Hundred Ninth Congress) is

as follows:

25

First Session

On or before: Action to be completed:

First Monday in February ................... President submits budget recommendations.

February 15 ........................................... Congressional Budget Office submits

report to Budget Committees.

Not later than 6 weeks after budget

submission.

Committees submit views and estimates

to Budget Committees.

April 1 ................................................... Budget Committees report concurrent

resolution on the biennial budget.

May 15 ................................................... Congress completes action on concurrent resolution on the biennial budget.

May 15 ................................................... Biennial appropriation bills may be

considered in the House.

June 10 .................................................. House Appropriations Committee reports last biennial appropriation bill.

June 30 .................................................. House completes action on biennial appropriation bills.

October 1 ............................................... Biennium begins.

Second Session

On or before: Action to be completed:

February 15 ........................................... President submits budget review.

Not later than 6 weeks after President

submits budget review.

Congressional Budget Office submits

report to Budget Committees.

The last day of the session ................... Congress completes action on bills and

resolutions authorizing new budget

authority for the succeeding biennium.

(b) SPECIAL RULE.—In the case of any first session of Congress

that begins in any year during which the term of a President (except

a President who succeeds himself) begins, the following dates shall

supersede those set forth in subsection (a):

First Session

On or before: Action to be completed:

First Monday in April .......................... President submits budget recommendations.

April 20 ................................................. Committees submit views and estimates

to Budget Committees.

May 15 ................................................... Budget Committees report concurrent

resolution on the biennial budget.

June 1 .................................................... Congress completes action on concurrent resolution on the biennial budget.

June 1 .................................................... Biennial appropriation bills may be

considered in the House.

July 1 .................................................... House Appropriations Committee reports last biennial appropriation bill.

July 20 .................................................. House completes action on biennial appropriation bills.

October 1 ............................................... Biennium begins.

øANNUAL¿ BIENNIAL ADOPTION OF CONCURRENT RESOLUTION ON THE

BUDGET

SEC. 301. (a) CONTENT OF CONCURRENT RESOLUTION ON THE

BUDGET.—On or before øApril 15 of each year¿ May 15 of each oddnumbered year, the Congress shall complete action on a concurrent

resolution on the budget for øthe fiscal year beginning on October

26

1 of such year¿ the biennium beginning on October 1 of such year. The concurrent resolution shall set forth appropriate levels for øthe

fiscal year beginning on October 1 of such year¿ each fiscal year

in such period and for at least each of the 4 ensuing fiscal years

for the following— (1) * * *

* * * * * * *

(6) For purposes of Senate enforcement under this title, outlays of the old-age, survivors, and disability insurance program

established under title II of the Social Security Act øfor the fiscal year¿ for each fiscal year in the biennium of the resolution

and for each of the 4 succeeding fiscal years; and

(7) For purposes of Senate enforcement under this title, revenues of the old-age, survivors, and disability insurance program established under title II of the Social Security Act (and

the related provisions of the Internal Revenue Code of 1986)

øfor the fiscal year¿ for each fiscal year in the biennium of the

resolution and for each of the 4 succeeding fiscal years.

(b) ADDITIONAL MATTERS IN CONCURRENT RESOLUTION.—The

concurrent resolution on the budget may—

(1) * * *

* * * * * * *

(3) require a procedure under which all or certain bills or

resolutions providing new budget authority or new entitlement

authority øfor such fiscal year¿ for either fiscal year in such biennium shall not be enrolled until the Congress has completed

action on any reconciliation bill or reconciliation resolution or

both required by such concurrent resolution to be reported in

accordance with section 310(b);

* * * * * * *

(7) set forth procedures in the Senate whereby committee allocations, aggregates, and other levels can be revised for legislation if that legislation would not increase the deficit, or

would not increase the deficit when taken with other legislation enacted after the adoption of the resolution, øfor the first

fiscal year¿ for each fiscal year in the biennium or the total period of fiscal years covered by the resolution;

* * * * * * *

(d) VIEWS AND ESTIMATES OF OTHER COMMITTEES.—Within 6

weeks after the President submits a budget under section 1105(a)

of title 31, United States Code (or, if applicable, as provided by section 300(b)), or at such time as may be requested by the Committee

on the Budget, each committee of the House of Representatives

having legislative jurisdiction shall submit to the Committee on the

Budget of the House and each committee of the Senate having legislative jurisdiction shall submit to the Committee on the Budget

of the Senate its views and estimates (as determined by the committee making such submission) with respect to all matters set

forth in subsections (a) and (b) which relate to matters within the

jurisdiction or functions of such committee. The Joint Economic

Committee shall submit to the Committees on the Budget of both

Houses its recommendations as to the fiscal policy appropriate to

the goals of the Employment Act of 1946. Any other committee of

27

the House of Representatives or the Senate may submit to the

Committee on the Budget of its House, and any joint committee of

the Congress may submit to the Committees on the Budget of both

Houses, its views and estimates with respect to all matters set

forth in subsections (a) and (b) which relate to matters within its

jurisdiction or functions. Any Committee of the House of Representatives or the Senate that anticipates that the committee will

consider any proposed legislation establishing, amending, or reauthorizing any Federal program likely to have a significant budgetary impact on any State, local, or tribal government, or likely to

have a significant financial impact on the private sector, including

any legislative proposal submitted by the executive branch likely to

have such a budgetary or financial impact, shall include its views

and estimates on that proposal to the Committee on the Budget of

the applicable House. Each committee of the Senate or the House

of Representatives shall review the strategic plans, performance

plans, and performance reports, required under section 306 of title

5, United States Code, and sections 1115 and 1116 of title 31,

United States Code, of all agencies under the jurisdiction of the

committee. Each committee may provide its views on such plans or

reports to the Committee on the Budget of the applicable House.

(e) HEARINGS AND REPORT.— (1) IN GENERAL.—In developing the concurrent resolution on

the budget referred to in subsection (a) for each øfiscal year¿

biennium, the Committee on the Budget of each House shall

hold hearings and shall receive testimony from Members of

Congress and such appropriate representatives of Federal departments and agencies, the general public, and national organizations as the committee deems desirable. Each of the recommendations as to short-term and medium-term goal set

forth in the report submitted by the members of the Joint Economic Committee under subsection (d) may be considered by

the Committee on the Budget of each House as part of its consideration of such concurrent resolution, and its report may reflect its views thereon, including its views on how the estimates of revenues and levels of budget authority and outlays

set forth in such concurrent resolution are designed to achieve

any goals it is recommending. On or before April 1 of each oddnumbered year (or, if applicable, as provided by section 300(b)),

the Committee on the Budget of each House shall report to its

House the concurrent resolution on the budget referred to in

subsection (a) for the biennium beginning on October 1 of that

year.

* * * * * * *

(f) ACHIEVEMENT OF GOALS FOR REDUCING UNEMPLOYMENT.—

(1) If, pursuant to section 4(c) of the Employment Act of

1946, the President recommends in the Economic Report that

the goals for reducing unemployment set forth in section 4(b)

of such Act be achieved in a year after the close of the fiveyear period prescribed by such subsection, the concurrent resolution on the budget for the øfiscal year¿ biennium beginning

after the date on which such Economic Report is received by

the Congress may set forth the year in which, in the opinion

of the Congress, such goals can be achieved.

28

(2) After the Congress has expressed its opinion pursuant to

paragraph (1) as to the year in which the goals for reducing

unemployment set forth in section 4(b) of the Employment Act

of 1946 can be achieved, if, pursuant to section 4(e) of such

Act, the President recommends in the Economic Report that

such goals be achieved in a year which is different from the

year in which the Congress has expressed its opinion that such

goals should be achieved, either in its action pursuant to paragraph (1) or in its most recent action pursuant to this paragraph, the concurrent resolution on the budget for the øfiscal

year¿ biennium beginning after the date on which such Economic Report is received by the Congress may set forth the

year in which, in the opinion of the Congress, such goals can

be achieved.

* * * * * * *

(g) ECONOMIC ASSUMPTIONS.—

(1) It shall not be in order in the Senate to consider any concurrent resolution on the budget øfor a fiscal year¿ for a biennium, or any amendment thereto, or any conference report

thereon, that sets forth amounts and levels that are determined on the basis of more than one set of economic and technical assumptions.

* * * * * * *

COMMITTEE ALLOCATIONS

SEC. 302. (a) COMMITTEE SPENDING ALLOCATIONS.—

(1) ALLOCATION AMONG COMMITTEES.—The joint explanatory

statement accompanying a conference report on a concurrent

resolution on the budget shall include an allocation, consistent

with the resolution recommended in the conference report, of

the levels øfor the first fiscal year of the resolution,¿ for each

fiscal year in the biennium, for at least each of the ensuing 4

fiscal years, and a total øfor that period of fiscal years¿ for all

fiscal years covered by the resolution (except in the case of the

Committee on Appropriations only øfor the fiscal year of that

resolution¿ for each fiscal year in the biennium) of—

(A) total new budget authority; and

(B) total outlays;

among each committee of the House of Representatives or the

Senate that has jurisdiction over legislation providing or creating such amounts.

* * * * * * *

(f) LEGISLATION SUBJECT TO POINT OF ORDER.— (1) IN THE HOUSE OF REPRESENTATIVES.—After the Congress

has completed action on a concurrent resolution on the budget

øfor a fiscal year¿ for a biennium, it shall not be in order in

the House of Representatives to consider any bill, joint resolution, or amendment providing new budget authority for any fiscal year, or any conference report on any such bill or joint resolution, if—

(A) * * *

* * * * * * *

29

would cause the applicable allocation of new budget authority

made under subsection (a) or (b) for the øfirst fiscal year¿ either fiscal year of the biennium or the total of fiscal years to

be exceeded.

(2) IN THE SENATE.—After a concurrent resolution on the

budget is agreed to, it shall not be in order in the Senate to

consider any bill, joint resolution, amendment, motion, or conference report that would cause— (A) in the case of any committee except the Committee

on Appropriations, the applicable allocation of new budget

authority or outlays under subsection (a) for the øfirst fiscal year or the total of fiscal years¿ each fiscal year of the

biennium or the total of all fiscal years covered by the resolution to be exceeded; or

* * * * * * *

(g) PAY-AS-YOU-GO EXCEPTION IN THE HOUSE.— (1) IN GENERAL.—(A) Subsection (f)(1) and, after øApril¿ May

15, section 303(a) shall not apply to any bill or joint resolution,

as reported, amendment thereto, or conference report thereon

if, for each fiscal year covered by the most recently agreed to

concurrent resolution on the budget— (i) * * *

* * * * * * *

CONCURRENT RESOLUTION ON THE BUDGET MUST BE ADOPTED

BEFORE BUDGET-RELATED LEGISLATION IS CONSIDERED

SEC. 303. (a) IN GENERAL.—Until the concurrent resolution on

the budget øfor a fiscal year¿ for a biennium has been agreed to,

it shall not be in order in the House of Representatives, with respect to øthe first fiscal year¿ each fiscal year of the biennium covered by that resolution, or the Senate, with respect to any fiscal

year covered by that resolution, to consider any bill or joint resolution, amendment or motion thereto, or conference report thereon

that—

(1) * * *

* * * * * * *

(b) EXCEPTIONS IN THE HOUSE.—In the House of Representatives,

subsection (a) does not apply—

(1)(A) to any bill or joint resolution, as reported, providing

advance discretionary new budget authority that first becomes

available for the first or second fiscal year after øthe budget

year¿ the biennium; or

(B) to any bill or joint resolution, as reported, first increasing

or decreasing revenues in a fiscal year following øthe fiscal

year¿ the biennium to which the concurrent resolution applies;

(2) after May 15 (or June 1 whenever section 300(b) is applicable), to any general appropriation bill or amendment thereto;

or

* * * * * * *

(c) APPLICATION TO APPROPRIATION MEASURES IN THE SENATE.— (1) IN GENERAL.—Until the concurrent resolution on the

budget for a øfiscal year¿ biennium has been agreed to and an

allocation has been made to the Committee on Appropriations

30

of the Senate under section 302(a) for that year, it shall not

be in order in the Senate to consider any appropriation bill or

joint resolution, amendment or motion thereto, or conference

report thereon for øthat year¿ each fiscal year of that biennium

or any subsequent year.

* * * * * * *

PERMISSIBLE REVISIONS OF CONCURRENT RESOLUTIONS ON THE

BUDGET

SEC. 304. At any time after the concurrent resolution on the

budget for a øfiscal year¿ biennium has been agreed to pursuant

to section 301, and before the end of such øfiscal year¿ biennium, the two Houses may adopt a concurrent resolution on the budget

which revises or reaffirms the concurrent resolution on the budget

øfor such fiscal year¿ most recently agreed to for such biennium.

PROVISIONS RELATING TO THE CONSIDERATION OF CONCURRENT

RESOLUTIONS ON THE BUDGET

SEC. 305. (a) PROCEDURE IN HOUSE OF REPRESENTATIVES AFTER

REPORT OF COMMITTEE; DEBATE.—

(1) * * *

* * * * * * *

(3) Following the presentation of opening statements on the

concurrent resolution on the budget for a øfiscal year¿ biennium by the chairman and ranking minority member of the

Committee on the Budget of the House, there shall be a period

of up to four hours for debate on economic goals and policies.

* * * * * * *

HOUSE COMMITTEE ACTION ON ALL APPROPRIATION BILLS TO BE

COMPLETED BY JUNE 10

SEC. 307. On or before June 10 of øeach year¿ each odd-numbered year (or, if applicable, as provided by section 300(b), July 1),

the Committee on Appropriations of the House of Representatives

shall report øannual¿ biennial appropriation bills providing new

budget authority under the jurisdiction of all of its subcommittees

for the øfiscal year¿ biennium which begins on October 1 of øthat

year¿ each odd-numbered year.

REPORTS, SUMMARIES, AND PROJECTIONS OF CONGRESSIONAL BUDGET

ACTIONS

SEC. 308. (a)***

* * * * * * *

(d) QUARTERLY BUDGET REPORTS.—The Director of the Congressional Budget Office shall, as soon as practicable after the completion of each quarter of the fiscal year, prepare an analysis comparing revenues, spending, and the deficit or surplus for the current

fiscal year to assumptions included in the congressional budget resolution. In preparing this report, the Director of the Congressional

Budget Office shall combine actual budget figures to date with projected revenue and spending for the balance of the fiscal year. The

Director of the Congressional Budget Office shall include any other

31

information in this report that it deems useful for a full understanding of the current fiscal position of the Federal Government.

The reports mandated by this subsection shall be transmitted by the

Director to the Senate and House Committees on the Budget, and

the Congressional Budget Office shall make such reports available

to any interested party upon request.

HOUSE APPROVAL OF REGULAR APPROPRIATION BILLS

SEC. 309. øIt¿ Except whenever section 300(b) is applicable, it

shall not be in order in the House of Representatives to consider

any resolution providing for an adjournment period of more than

three calendar days during the month of July of any odd-numbered

calendar year until the House of Representatives has approved

øannual¿ biennial appropriation bills providing new budget authority under the jurisdiction of all the subcommittees of the Committee on Appropriations for the øfiscal year¿ biennium beginning

on October 1 of such year. For purposes of this section, the chairman of the Committee on Appropriations of the House of Representatives shall periodically advise the Speaker as to changes in

jurisdiction among its various subcommittees.

RECONCILIATION

SEC. 310. (a) INCLUSION OF RECONCILIATION DIRECTIVES IN CON- CURRENT RESOLUTIONS ON THE BUDGET.—A concurrent resolution

on the budget for øany fiscal year¿ any biennium, to the extent

necessary to effectuate the provisions and requirements of such

resolution, shall— (1) specify the total amount by which— (A) new budget authority for øsuch fiscal year¿ any fiscal year covered by such resolution;

* * * * * * *

(C) new entitlement authority which is to become effective during øsuch fiscal year¿ any fiscal year covered by

such resolution; and

(D) credit authority for øsuch fiscal year¿ any fiscal year

covered by such resolution, contained in laws, bills, and resolutions within the jurisdiction

of a committee is to be changed and direct that committee to

determine and recommend changes to accomplish a change of

such total amount;

* * * * * * *

ø(f) COMPLETION OF RECONCILIATION PROCESS.—It shall not be in

order in the House of Representatives to consider any resolution

providing for an adjournment period of more than three calendar

days during the month of July until the House of Representatives

has completed action on the reconciliation legislation for the fiscal

year beginning on October 1 of the calendar year to which the adjournment resolution pertains, if reconciliation legislation is required to be reported by the concurrent resolution on the budget

for such fiscal year.¿

ø(g)¿ (f) LIMITATION ON CHANGES TO THE SOCIAL SECURITY

ACT.—Notwithstanding any other provision of law, it shall not be

in order in the Senate or the House of Representatives to consider

any reconciliation bill or reconciliation resolution reported pursuVerDate 11-MAY-2000 09:54 Nov 16, 2001 Jkt 099006 PO 00000 Frm 00031 Fmt 6659 Sfmt 6601 E:\HR\OC\HR200P2.XXX pfrm07 PsN: HR200P2
32

ant to a concurrent resolution on the budget agreed to under section 301 or 304, or a joint resolution pursuant to section 258C of

the Balanced Budget and Emergency Deficit Control Act of 1985,

or any amendment thereto or conference report thereon, that contains recommendations with respect to the old-age, survivors, and

disability insurance program established under title II of the Social

Security Act.

BUDGET-RELATED LEGISLATION MUST BE WITHIN APPROPRIATE

LEVELS

SEC. 311. (a) ENFORCEMENT OF BUDGET AGGREGATES.—

(1) IN THE HOUSE OF REPRESENTATIVES.—Except as provided

by subsection (c), after the Congress has completed action on

a concurrent resolution on the budget øfor a fiscal year¿ for a

biennium, it shall not be in order in the House of Representatives to consider any bill, joint resolution, amendment, motion,

or conference report providing new budget authority or reducing revenues, if—

(A) the enactment of that bill or resolution as reported;

(B) the adoption and enactment of that amendment; or

(C) the enactment of that bill or resolution in the form

recommended in that conference report;

would cause the level of total new budget authority or total

outlays set forth in the applicable concurrent resolution on the

budget for øthe first fiscal year¿ either fiscal year of the biennium to be exceeded, or would cause revenues to be less than

the level of total revenues set forth in that concurrent resolution for øthe first fiscal year¿ either fiscal year of the biennium

or for the total of øthat first fiscal year¿ each fiscal year in the

biennium and the ensuing fiscal years for which allocations are

provided under section 302(a), except when a declaration of

war by the Congress is in effect.

(2) IN THE SENATE.—After a concurrent resolution on the

budget is agreed to, it shall not be in order in the Senate to

consider any bill, joint resolution, amendment, motion, or conference report that—

(A) would cause the level of total new budget authority

or total outlays set forth øfor the first fiscal year¿ for either fiscal year of the biennium in the applicable resolution

to be exceeded; or

(B) would cause revenues to be less than the level of

total revenues set forth for øthat first fiscal year¿ each fiscal year in the biennium or for the total of øthat first fiscal

year and the ensuing fiscal years¿ all fiscal years in the

applicable resolution for which allocations are provided

under section 302(a).

(3) ENFORCEMENT OF SOCIAL SECURITY LEVELS IN THE SENATE.—After a concurrent resolution on the budget is agreed to,

it shall not be in order in the Senate to consider any bill, joint

resolution, amendment, motion, or conference report that

would cause a decrease in social security surpluses or an increase in social security deficits relative to the levels set forth

in the applicable resolution øfor the first fiscal year¿ each fiscal year in the biennium or for the total of øthat fiscal year and

33

the ensuing fiscal years¿ all fiscal years for which allocations

are provided under section 302(a).

* * * * * * *

DETERMINATIONS AND POINTS OF ORDER

SEC. 312. (a)***

* * * * * * *

(c) MAXIMUM DEFICIT AMOUNT POINT OF ORDER IN THE SEN- ATE.—It shall not be in order in the Senate to consider any concurrent resolution on the budget øfor a fiscal year¿ for a biennium, or

to consider any amendment to that concurrent resolution, or to consider a conference report on that concurrent resolution, if— (1) the level of total outlays for the øfirst fiscal year¿ either

fiscal year in the biennium set forth in that concurrent resolution or conference report exceeds; or

(2) the adoption of that amendment would result in a level

of total outlays for øthat fiscal year¿ either fiscal year in the

biennium that exceeds;

the recommended level of Federal revenues for øthat fiscal year¿

the applicable fiscal year, by an amount that is greater than the

maximum deficit amount, if any, specified in the Balanced Budget

and Emergency Deficit Control Act of 1985 for that fiscal year.

* * * * * * *

MULTIYEAR AUTHORIZATIONS OF APPROPRIATIONS

SEC. 316. (a) POINT OF ORDER.—(1)(A) It shall not be in order in

the House of Representatives or the Senate to consider any measure

that contains a specific authorization of appropriations for any purpose unless the measure includes such a specific authorization of

appropriations for that purpose for not less than each fiscal year in

one or more bienniums.

(B) For purposes of this paragraph, a specific authorization of appropriations is an authorization for the enactment of an amount of

appropriations or amounts not to exceed an amount of appropriations (whether stated as a sum certain, as a limit, or as such sums

as may be necessary) for any purpose for a fiscal year.

(2) Paragraph (1) does not apply with respect to an authorization

of appropriations for a single fiscal year for any program, project,

or activity if the measure containing that authorization includes a

provision expressly stating the following: ‘‘Congress finds that no

authorization of appropriation will be required for [Insert name of

applicable program, project, or activity] for any subsequent fiscal

year.’’. (b) For purposes of this section, the term ‘‘measure’’ means a bill,

joint resolution, amendment, motion, or conference report.

CONSIDERATION OF BIENNIAL APPROPRIATION BILLS

SEC. 317. It shall not be in order in the Senate in any odd-numbered year to consider any regular appropriation bill providing new

budget authority or a limitation on obligations under the jurisdiction of the Committee on Appropriations for only the first fiscal year

of a biennium, unless the program, project, or activity for which the

new budget authority or obligation limitation is provided will reVerDate 11-MAY-2000 09:54 Nov 16, 2001 Jkt 099006 PO 00000 Frm 00033 Fmt 6659 Sfmt 6603 E:\HR\OC\HR200P2.XXX pfrm07 PsN: HR200P2
34

quire no additional authority beyond one year and will be completed or terminated after the amount provided has been expended.

* * * * * * *

RULES OF THE HOUSE OF REPRESENTATIVES, 107TH

CONGRESS

* * * * * * *

RULE X.

ORGANIZATION OF COMMITTEES.

* * * * * * *

Additional functions of committees

4. (a)(1)(A) The Committee on Appropriations shall, within 30

days after the transmittal of the Budget to Congress each oddnumbered year, hold hearings on the Budget as a whole with particular reference to— (i) * * *

* * * * * * *

(4) In the manner provided by section 302 of the Congressional

Budget Act of 1974, the Committee on Appropriations (after consulting with the Committee on Appropriations of the Senate) shall

subdivide any allocations made to it in the joint explanatory statement accompanying the conference report on such concurrent resolution, and promptly report the subdivisions to the House as soon

as practicable after a concurrent resolution on the budget for a øfiscal year¿ biennium is agreed to.

(b) The Committee on the Budget shall—

(1) * * *

(2) hold hearings and receive testimony from Members, Senators, Delegates, the Resident Commissioner, and such appropriate representatives of Federal departments and agencies,

the general public, and national organizations as it considers

desirable in developing concurrent resolutions on the budget

for øeach fiscal year¿ the biennium;

* * * * * * *

(5) study on a continuing basis proposals designed to improve and facilitate the congressional budget process, and report to the House from time to time the results of such studies,

together with its recommendations; øand¿

(6) request and evaluate continuing studies of tax expenditures, devise methods of coordinating tax expenditures, policies, and programs with direct budget outlays, and report the

results of such studies to the House on a recurring basisø.¿;

and

(7) use the second session of each Congress to study issues

with long-term budgetary and economic implications, which

would include—

(A) hold hearings to receive testimony from committees of

jurisdiction to identify problem areas and to report on the

results of oversight; and

35

(B) by January 1 of each odd-numbered year, issuing a

report to the Speaker which identifies the key issues facing

the Congress in the next biennium.

(e)(1) Each standing committee shall, in its consideration of all

public bills and public joint resolutions within its jurisdiction, ensure that appropriations for continuing programs and activities of

the Federal Government and the government of the District of Columbia will be made øannually¿ biennially to the maximum extent

feasible and consistent with the nature, requirement, and objective

of the programs and activities involved. In this subparagraph programs and activities of the Federal Government and the government of the District of Columbia includes programs and activities

of any department, agency, establishment, wholly owned Government corporation, or instrumentality of the Federal Government or

of the government of the District of Columbia.

(2) Each standing committee shall review from time to time each

continuing program within its jurisdiction for which appropriations

are not made øannually¿ biennially to ascertain whether the program should be modified to provide for øannual¿ biennial appropriations.

Budget Act responsibilities

(f)(1) Each standing committee shall submit to the Committee on

the Budget not later than six weeks after the President submits his

budget during each odd-numbered year, or at such time as the

Committee on the Budget may request— (A) its views and estimates with respect to all matters to be

set forth in the concurrent resolution on the budget for the ensuing øfiscal year¿ biennium that are within its jurisdiction or

functions; and

(B) an estimate of the total amounts of new budget authority, and budget outlays resulting therefrom, to be provided or

authorized in all bills and resolutions within its jurisdiction

that it intends to be effective during øthat fiscal year¿ each fiscal year in such ensuing biennium.

* * * * * * *

Permanent Select Committee on Intelligence

11. (a)***

* * * * * * *

(i) Subject to the Rules of the House, funds may not be appropriated for a fiscal year, with the exception of a bill or joint resolution continuing appropriations, or an amendment thereto, or a conference report thereon, to, or for use of, a department or agency of

the United States to carry out any of the following activities, unless

the funds shall previously have been authorized by a bill or joint

resolution passed by the House øduring the same or preceding fiscal year¿ to carry out such activity for such fiscal year:

(1) * * *

* * * * * * *

RULE XIII.

CALENDARS AND COMMITTEE REPORTS.

* * * * * * *

36

Content of reports

3. (a) * * *

* * * * * * *

(d) Each report of a committee on a public bill or public joint resolution shall contain the following:

(1) * * *

(2)(A) An estimate by the committee of the costs that would

be incurred in carrying out the bill or joint resolution in the

fiscal year in which it is reported and in each of the øfive¿ six

fiscal years following that fiscal year (or for the authorized duration of any program authorized by the bill or joint resolution

if less than øfive¿ six years);

* * * * * * *

Privileged reports, generally

5. (a) The following committees shall have leave to report at any

time on the following matters, respectively:

(1) The Committee on Appropriations, on general appropriation bills and on joint resolutions continuing appropriations for

a øfiscal year after September 15 in the preceding fiscal year¿

biennium after September 15 of the year in which such biennium begins.

* * * * * * *

RULE XXI.

* * * * * * *

RESTRICTIONS ON CERTAIN BILLS.

General appropriation bills and amendments

2. (a)(1)***

* * * * * * *

(3)(A) Except as provided by subdivision (B), an appropriation

may not be reported in a general appropriation bill (other than a

supplemental appropriation bill), and may not be in order as an

amendment thereto, unless it provides new budget authority or establishes a level of obligations under contract authority for each fiscal year of a biennium.

(B) Subdivision (A) does not apply with respect to an appropriation for a single fiscal year for any program, project, or activity if

the bill or amendment thereto containing that appropriation includes a provision expressly stating the following: ‘‘Congress finds

that no additional funding beyond one fiscal year will be required

and the [Insert name of applicable program, project, or activity] will

be completed or terminated after the amount provided has been expended.’’.

(C) For purposes of paragraph (b), the statement set forth in subdivision (B) with respect to an appropriation for a single fiscal year

for any program, project, or activity may be included in a general

appropriation bill or amendment thereto.

* * * * * * *

37

RULE XXII.

HOUSE AND SENATE RELATIONS.

* * * * * * *

5. (a) * * *

(b) The managers on the part of the House may not agree to a

Senate amendment described in paragraph (a) that—

(1) would violate clause 2(a)(1) øor (c)¿ or (3) or 2(c) of rule

XXI if originating in the House; or

* * * * * * *

TITLE 31, UNITED STATES CODE

* * * * * * *

SUBTITLE II—THE BUDGET PROCESS

* * * * * * *

CHAPTER 11—THE BUDGET AND FISCAL, BUDGET, AND

PROGRAM INFORMATION

§ 1101. Definitions

In this chapter—

(1) * * *

* * * * * * *

(3) ‘‘biennium’’ has the meaning given to such term in paragraph (13) of section 3 of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 622(13)).

* * * * * * *

§ 1105. Budget contents and submission to Congress

ø(a) On or after the first Monday in January but not later than

the first Monday in February of each year the President shall submit a budget of the United States Government for the following fiscal year. Each budget shall include a budget message and summary and supporting information. The President shall include in

each budget the following:¿

(a) On or before the first Monday in February of each odd-numbered year (or, if applicable, as provided by section 300(b) of the

Congressional Budget Act of 1974), beginning with the One Hundred Ninth Congress, the President shall transmit to the Congress,

the budget for the biennium beginning on October 1 of such calendar year. The budget transmitted under this subsection shall include a budget message and summary and supporting information.

The President shall include in each budget the following:

(1) * * *

* * * * * * *

(5) except as provided in subsection (b) of this section, estimated expenditures and proposed appropriations the President

decides are necessary to support the Government in øthe fiscal

year for which the budget is submitted and the 4 fiscal years

38

after that year¿ each fiscal year in the biennium for which the

budget is submitted and in the succeeding 4 years. (6) estimated receipts of the Government in øthe fiscal year

for which the budget is submitted and the 4 fiscal years after

that year¿ each fiscal year in the biennium for which the budget is submitted and in the succeeding 4 years under— (A) * * *

* * * * * * *

(9) balanced statements of the—

(A) * * *

* * * * * * *

(C) estimated condition of the Treasury at the end of

øthe fiscal year¿ each fiscal year in the biennium for which

the budget is submitted if financial proposals in the budget

are adopted.

* * * * * * *

(12) for each proposal in the budget for legislation that would

establish or expand a Government activity or function, a table

showing—

(A) the amount proposed in the budget for appropriation

and for expenditure because of the proposal in øthe fiscal

year¿ each fiscal year in the biennium for which the budget is submitted; and

* * * * * * *

(13) an allowance for additional estimated expenditures and

proposed appropriations for øthe fiscal year¿ each fiscal year in

the biennium for which the budget is submitted.

(14) an allowance for unanticipated uncontrollable expenditures for øthat year¿ each fiscal year in the biennium for which

the budget is submitted.

* * * * * * *

(16) the level of tax expenditures under existing law in the

tax expenditures budget (as defined in section 3(a)(3) of the

Congressional Budget Act of 1974 (2 U.S.C. 622(a)(3)) for øthe

fiscal year¿ each fiscal year in the biennium for which the

budget is submitted, considering projected economic factors

and changes in the existing levels based on proposals in the

budget.

(17) information on estimates of appropriations for øthe fiscal year following the fiscal year¿ each fiscal year in the biennium following the biennium for which the budget is submitted

for grants, contracts, and other payments under each program

for which there is an authorization of appropriations for øthat

following fiscal year¿ each such fiscal year when the appropriations are authorized to be included in an appropriation law for

the øfiscal year before the fiscal year¿ biennium before the biennium in which the appropriation is to be available for obligation.

(18) a comparison of the total amount of budget outlays for

øthe prior fiscal year,¿ each of the 2 most recently completed

fiscal years, estimated in the budget submitted øfor that year¿

with respect to those fiscal years, for each major program havVerDate 11-MAY-2000 09:54 Nov 16, 2001 Jkt 099006 PO 00000 Frm 00038 Fmt 6659 Sfmt 6602 E:\HR\OC\HR200P2.XXX pfrm07 PsN: HR200P2
39

ing relatively uncontrollable outlays with the total amount of

outlays for that program øin that year¿ in those fiscal years. (19) a comparison of the total amount of receipts for øthe

prior fiscal year¿ each of the 2 most recently completed fiscal

years, estimated in the budget submitted øfor that year¿ with

respect to those fiscal years, with receipts received øin that

year¿ in those fiscal years, and for each major source of receipts, a comparison of the amount of receipts estimated in

that budget with the amount of receipts from that source øin

that year¿ in those fiscal years.

* * * * * * *

(28) øbeginning with fiscal year 1999, a¿ beginning with fiscal year 2006, a biennial Federal Government performance

plan for the overall budget as provided for under section 1115.

(b) Estimated expenditures and proposed appropriations for the

legislative branch and the judicial branch to be included in each

budget under subsection (a)(5) of this section shall be submitted to

the President before October 16 of øeach year¿ each even-numbered

year and included in the budget by the President without change.

* * * * * * *

(c) The President shall recommend in the budget appropriate action to meet an estimated deficiency when the estimated receipts

for øthe fiscal year for¿ each fiscal year in the biennium for which

the budget is submitted (under laws in effect when the budget is

submitted) and the estimated amounts in the Treasury at the end

of the current fiscal year available for expenditure in øthe fiscal

year for¿ each fiscal year of the biennium, as the case may be,

which the budget is submitted, are less than the estimated expenditures for øthat year¿ for each year of the biennium. The President

shall make recommendations required by the public interest when

the estimated receipts and estimated amounts in the Treasury are

more than the estimated expenditures.

* * * * * * *

(e)(1) The President shall submit with materials related to each

budget transmitted under subsection (a) on or after January 1,

1985, an analysis for the øensuing fiscal year¿ biennium to which

such budget relates that shall identify requested appropriations or

new obligational authority and outlays for each major program that

may be classified as a public civilian capital investment program

and for each major program that may be classified as a military

capital investment program, and shall contain summaries of the

total amount of such appropriations or new obligational authority

and outlays for public civilian capital investment programs and

summaries of the total amount of such appropriations or new

obligational authority and outlays for military capital investment

programs. In addition, the analysis under this paragraph shall

contain—

(A) * * *

* * * * * * *

§ 1106. Supplemental budget estimates and changes

(a) Before July 16 of each year and before February 15 of each

even numbered-year, the President shall submit to Congress a supVerDate 11-MAY-2000 09:54 Nov 16, 2001 Jkt 099006 PO 00000 Frm 00039 Fmt 6659 Sfmt 6602 E:\HR\OC\HR200P2.XXX pfrm07 PsN: HR200P2
40

plemental summary of the budget for the øfiscal year¿ biennium

for which the budget is submitted under section 1105(a) of this

title. The summary shall include—

(1) for øthat fiscal year¿ each fiscal year in such biennium—

(A) * * *

* * * * * * *

(2) for the ø4 fiscal years following the fiscal year¿ 4 fiscal

years following the biennium for which the budget is submitted, information on estimated expenditures for programs

authorized to continue in future years, or that are considered

mandatory, under law; and

(3) for future fiscal years, information on estimated expenditures of balances carried over from the øfiscal year¿ biennium

for which the budget is submitted.

(b) Before July 16 of each year and before February 15 of each

even numbered-year, the President shall submit to Congress a

statement of changes in budget authority requested, estimated

budget outlays, and estimated receipts for øthe fiscal year¿ each

fiscal year in the biennium for which the budget is submitted (including prior changes proposed for the executive branch of the Government) that the President decides are necessary and appropriate

based on current information. The statement shall include the effect of those changes on the information submitted under section

1105(a)(1)–(14) and (b) of this title and shall include supporting information as practicable. The statement submitted before July 16

may be included in the information submitted under subsection

(a)(1) of this section.

* * * * * * *

§ 1109. Current programs and activities estimates

(a) øOn or before the first Monday after January 3 of each year

(on or before February 5 in 1986)¿ At the same time the budget required by section 1105 is submitted for a biennium, the President

shall submit to both Houses of Congress the estimated budget outlays and proposed budget authority that would be included in the

budget for øthe following fiscal year¿ each fiscal year of such period

if programs and activities of the United States Government were

carried on during that year at the same level as the current fiscal

year without a change in policy. The President shall state the estimated budget outlays and proposed budget authority by function

and subfunction under the classifications in the budget summary

table under the heading ‘‘Budget Authority and Outlays by Function and Agency’’, by major programs in each function, and by

agency. The President also shall include a statement of the economic and program assumptions on which those budget outlays

and budget authority are based, including inflation, real economic

growth, and unemployment rates, program caseloads, and pay increases.

(b) The Joint Economic Committee shall review the estimated

budget outlays and proposed budget authority and submit an economic evaluation of the budget outlays and budget authority to the

Committees on the Budget of both Houses before øMarch 1 of each

year¿ within 6 weeks of the President’s budget submission for each

41

odd-numbered year (or, if applicable, as provided by section 300(b)

of the Congressional Budget Act of 1974).

§ 1110. Year-ahead requests for authorizing legislation

A request to enact legislation authorizing new budget authority

to continue a program or activity for a fiscal year shall be submitted to Congress before øMay 16¿ March 31 of the øyear before

the year in which the fiscal year begins¿ calendar year preceding

the calendar year in which the biennium begins. If a new program

or activity will continue for more than one year, the request must

be submitted for at least the first and 2d fiscal years.

* * * * * * *

§ 1115. Performance plans

(a) In carrying out the provisions of øsection 1105(a)(29)¿ section

1105(a)(28), the Director of the Office of Management and Budget

shall require each agency to prepare øan annual¿ a biennial performance plan covering each program activity set forth in the budget of such agency. Such plan shall—

(1) establish performance goals to define the level of performance to be achieved by a program activity for both years 1 and

2 of the biennial plan;

* * * * * * *

(5) provide a basis for comparing actual program results with

the established performance goals; øand¿

(6) describe the means to be used to verify and validate

measured valuesø.¿; and

(7) cover each fiscal year of the biennium beginning with the

first fiscal year of the next biennial budget cycle.

* * * * * * *

(d) An agency may submit with its øannual¿ biennial performance plan an appendix covering any portion of the plan that—

(1) * * *

* * * * * * *

(f) For purposes of this section and sections 1116 through 1119,

and sections 9703 and 9704 the term—

(1) * * *

* * * * * * *

(6) ‘‘program activity’’ means a specific activity or project as

listed in the program and financing schedules of the øannual¿

biennial budget of the United States Government; and

* * * * * * *

SUBTITLE VI—MISCELLANEOUS

* * * * * * *

CHAPTER 97—MISCELLANEOUS

* * * * * * *

42

§ 9703. Managerial accountability and flexibility

(a) Beginning with fiscal year 1999, the performance plans required under section 1115 may include proposals to waive administrative procedural requirements and controls, including specification of personnel staffing levels, limitations on compensation or remuneration, and prohibitions or restrictions on funding transfers

among budget object classification 20 and subclassifications 11, 12,

31, and 32 of each øannual¿ budget submitted under section 1105,

in return for specific individual or organization accountability to

achieve a performance goal. In preparing and submitting the performance plan under øsection 1105(a)(29)¿ section 1105(a)(28), the

Director of the Office of Management and Budget shall review and

may approve any proposed waivers. A waiver shall take effect at

the beginning of the fiscal year for which the waiver is approved.

* * * * * * *

(e) A waiver shall be in effect for øone or¿ two years as specified

by the Director of the Office of Management and Budget in approving the waiver. A waiver may be renewed for øa subsequent year¿

for a subsequent 2-year period. After a waiver has been in effect for

øthree¿ four consecutive years, the performance plan prepared

under section 1115 may propose that a waiver, other than a waiver

of limitations on compensation or remuneration, be made permanent.

* * * * * * *

SECTION 105 OF TITLE 1, UNITED STATES CODE

ø§ 105. Title of appropriation Acts

øThe style and title of all Acts making appropriations for the

support of Government shall be as follows: ‘‘An Act making appropriations (here insert the object) for the year ending September 30

(here insert the calendar year).’’.¿

§ 105. Title and style of appropriations Acts

(a) The style and title of all Acts making appropriations for the

support of the Government shall be as follows: ‘‘An Act making appropriations (here insert the object) for each fiscal year in the biennium of fiscal years (here insert the fiscal years of the biennium).’’. (b) All Acts making regular appropriations for the support of the

Government shall be enacted for a biennium and shall specify the

amount of appropriations provided for each fiscal year in such period.

(c) For purposes of this section, the term ‘‘biennium’’ has the same

meaning as in section 3(11) of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 622(11)).

SECTION 306 OF TITLE 5, UNITED STATES CODE

§ 306. Strategic plans

(a) No later than September 30, ø1997¿ 2003, the head of each

agency shall submit to the Director of the Office of Management

43

and Budget and to the Congress a strategic plan for program activities. Such plan shall contain— (1) * * *

* * * * * * *

(b) The strategic plan shall cover a period of not less than øfive

years forward¿ six years forward from the fiscal year in which it

is submitted. The strategic plan shall be updated and revised øat

least every three years, except that the strategic plan for the Department of Defense shall be updated and revised at least every

four years.¿ at least every 4 years, except that strategic plans submitted by September 30, 2003, shall be updated and revised by September 30, 2006.

(c) The performance plan required by section 1115 of title 31

shall be consistent with the agency’s strategic plan. A performance

plan may not be submitted for a fiscal year not covered by a current strategic plan under this section including a strategic plan

submitted by September 30, 2003, meeting the requirements of subsection (a).

* * * * * * *

TITLE 39, UNITED STATES CODE

* * * * * * *

PART III—MODERNIZATION AND FISCAL

ADMINISTRATION

* * * * * * *

CHAPTER 28—STRATEGIC PLANNING AND

PERFORMANCE MANAGEMENT

* * * * * * *

§ 2802. Strategic plans

(a) No later than September 30, ø1997¿ 2003, the Postal Service

shall submit to the President and the Congress a strategic plan for

its program activities. Such plan shall contain— (1) * * *

* * * * * * *

(b) The strategic plan shall cover a period of not less than øfive¿

six years forward from the fiscal year in which it is submitted, and

shall be updated and revised øat least every three years¿ at least

every 4 years except that strategic plans submitted by September 30,

2003, shall be updated and revised by September 30, 2006.

(c) The performance plan required under section 2803 shall be

consistent with the Postal Service’s strategic plan. A performance

plan may not be submitted for a fiscal year not covered by a current strategic plan under this section including a strategic plan

submitted by September 30, 2003, meeting the requirements of subsection (a).

* * * * * * *

44

§ 2803. Performance plans

(a) The Postal Service shall prepare øan annual¿ a biennial performance plan covering each program activity set forth in the Postal Service budget, which shall be included in the comprehensive

statement presented under section 2401(g) of this title. Such plan

shall—

(1) establish performance goals to define the level of performance to be achieved by a program activity for both years 1 and

2 of the biennial plan;

* * * * * * *

(5) provide a basis for comparing actual program results with

the established performance goals; øand¿

(6) describe the means to be used to verify and validate

measured valuesø.¿; and

(7) cover each fiscal year of the biennium beginning with the

first fiscal year of the next biennial budget cycle.

* * * * * * *

(45)

DISSENTING VIEWS

The Rules Committee has, over at least the past 25 years, examined the federal budget process time and again in what now seems

to be a biennial ritual. During that time, many, both in and outside

the Congress have complained that the existing budget process

does not work, yet no major overhaul of the fundamental process

has ever been enacted. The Congress has tinkered around the

edges, has enacted major limits on spending and overspending, but

has never successfully fashioned a complete package of reforms

that has met the approval of both houses. Yet, during those years

and in spite of the complaints about the inefficiencies of the system, the work of the Congress has gone on as required by the Constitution and the 1974 Congressional Budget Act. Budgets have

been enacted, committees have conducted oversight, and appropriations bills have been sent to the President.

The Congressional Budget and Impoundment Act of 1974 itself

came about as a result of what was then an increasingly inefficient

process that ceded too much spending decision-making authority to

the Executive. The Act was envisioned as a means to enable the

Congress to more efficiently make budget decisions by requiring

the timely enactment of authorizations for federal programs, passage of a budget resolution which would outline the spending priorities for the coming year based on those authorizations, and enactment of appropriations acts which would fund them. The Act was

also designed to take back control of the Constitutionally-mandated

power of the purse responsibilities of the Congress by requiring

that the Executive submit to Congress, for its approval, any proposed rescission of spending authority.

The Act did not, and could not, anticipate the economic and

budgetary rollercoaster of the 1980’s, nor could it anticipate the

change in the political dynamics that took place during those years.

The first change in the 1974 Act came about as a result of the soaring deficits of the early 1980’s and the desire of the Congress to

gain a measure of control over its spending. The Balanced Budget

and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings) changed the process by establishing deficit targets for six fiscal years beginning in FY 1986 and created a new budget tool

known as sequestration. Sequestration was designed to cut spending across-the-board when total spending exceeded those deficit targets set in law. Gramm-Rudman Hollings did not, however, make

other major procedural changes in the budget process and it kept

in place the annual process of appropriating funds for the government. Ultimately, the Congress, working with the Executive in two

succeeding Administrations, made budgetary choices and decisions

that led to the reappearance of budget surpluses which, until this

summer, seemed to stretch far into the future.

46

The notion of changing the current budget and appropriations

process from an annual cycle to a biennial cycle is not new and, in

fact, the first proposal to move to a two-year cycle was introduced

in 1977. Since then, over 60 proposals to move to biennial budgeting have been introduced. In the 106th Congress, an amendment

offered by the Chairman of this Committee to wide-ranging budget

process reform bill failed by only 16 votes. It is obvious many Members of Congress genuinely feel that a two-year budget cycle is preferable to the current process. Biennial budgeting, in their view,

would reduce the amount of time dedicated to making budget decisions which would result in an increase in the amount of time dedicated to oversight of the programs those budgets fund. They argue

that a biennial budget would lead to better management of federal

programs because time would be freed on the Congressional calendar for the consideration of authorization legislation. Supporters

of biennial budgeting claim it is a more efficient and less cumbersome process, that it would result in a more thoughtful decisionmaking process, and that it would force Congress to be more careful in its spending habits. We agree that these goals are worthy,

but disagree that a two-year cycle would ensure they would be met.

In fact, we believe a two-year budget cycle would seriously undermine the ability of the Congress to control federal spending. We

submit that to operate under a biennial budget is to operate under

a budget framework that depends upon an endless series of supplemental spending bills. Those supplemental bills might or might not

adhere to a spending framework adopted one or two years before

and thus pose a threat to any sort of fiscal discipline that proponents of this budget scheme say would be enhanced in a two-year

cycle. This, we believe, is good reason for fiscal conservatives to oppose this scheme. We can envision that two-year appropriations

will have to build in additional spending in anticipation of unforeseen future events, yet those funds will more than likely not sufficiently cover the myriad of events that could occur over a two year

period. Experience and academic research conform our common

sense intuition: states with biennial budgets invariably spend more

(per capita per year) than do states with annual budgets. A lot can

happen in two years and we submit it would be far better to plan

12 months out rather 24 or 28 months out.

In addition, we believe biennial budgeting would, in fact, diminish rather than enhance the oversight of federal programs. During

the round of budget process reform hearings in early 2000, GAO

Associate Director Susan Irving testified before this Committee and

said, ‘‘A two-year appropriation cycle would change—and could

lessen—congressional influence over program and spending matters, since the process would afford fewer scheduled opportunities

to affect agency programs and budgets.’’ We concur that biennial

budgeting would weaken rather than strengthen Congressional

control over the administration of federal programs because agencies and departments would not be subjected to an annual accounting on the Hill. We would like to remind this Committee of an argument in support of this position made to the Committee during

those hearings. Rep. Dave Obey (D–WI), who serves this institution

as the Ranking Member of the Committee on Appropriations and

who has some experience dealing with Executive branch agencies

47

and department personnel, both political and career, said on February 19, 2000:

The fact that proponents of this legislation have not

placed in perspective is that there are numerous agencies

in this government that are not even responsive to their

own appointed leadership. They are even less responsive to

departmental management or the White House and still

less responsive to the Congress and this proposition will

make matters worse. The healthiest single event that occurs in this town each year is the annual budget review.

It is the one moment in time when many senior program

managers are confronted with the possibility that they

were not ordained by God to set government policies on

their own. Removing this requirement will affect not only

our ability to ensure that laws are fully and faithfully executed, it also diminishes the ability of House Members to

effectively represent and advocate for their constituents.

We heartily concur with proponents of biennial budgeting that

committees other than the Appropriations Committee must strive

to fully examine the programs under their jurisdiction in order to

hold the Executive accountable. But we do not understand how giving the Executive branch a biennial pass on answering questions

posed to them by the very committees who write their checks will

ensure that the programs and activities administered by the selfsame Executive are ‘‘fully and faithfully executed.’’ Again, we submit a lot can happen in two years and that the Congress has a

Constitutional responsibility to ask questions about money, management, and administration on a regular, ongoing basis.

There is nothing in either law or in the process that hinders the

ability of the committees of the Congress to conduct oversight during any one Session of a Congress. Nor is there really any procedural reason why authorization legislation cannot move through

the system in a timely manner. What stands in the way of the conduct of these activities has been, and will most likely continue to

be, a political problem rather than a procedural problem. Authorizations are not enacted because agreement cannot be reached

about their scope and content, not because there isn’t time on the

floor. In fact, this Committee often limits debate and amendments

in order to assure that the House can meet a two and one half day

a week legislative schedule. There may have been limited oversight

of federal programs but we propose that it has been because committee chairs have been too busy pursuing ideological agendas to

focus attention on the work that should fall within the purview of

their committees. It is a lack of political will rather than procedural roadblocks that has kept the Congress from meeting its responsibilities in this area. We cannot agree that moving to a twoyear budget cycle will give the Congress any more political will to

resolve these issues than it has now.

We would like to return to the point that a lot can happen in two

years that no one, not even with the collective wisdom of Congress,

can safely predict. In fact, a lot can happen in a day. If the tragic

and horrific events of September 11 do not point to how dangerous

it can be to make plans two years in advance, then perhaps the disVerDate 11-MAY-2000 09:54 Nov 16, 2001 Jkt 099006 PO 00000 Frm 00047 Fmt 6604 Sfmt 6602 E:\HR\OC\HR200P2.XXX pfrm07 PsN: HR200P2
48

appearing surpluses of September 10 might bolster our argument.

Formulating a budget for the programs and activities of the federal

government up to 28 months before the beginning of a fiscal year

seems to defy logic. As we have seen, decisions can be outdated in

a moment. How this Congress could have anticipated the need 28

months ago to help rebuild the southern end of Manhattan amidst

a recession defies reason. How the Congress could have foreseen in

May that the Federal Reserve would be cutting interest rates to 2

percent in order to stave off the worst effects of an economic slowdown complicated by a war of indeterminate scope and determination is also impossible to comprehend.

On Monday, October 29, the Director of the Office of Management and Budget, Mitch Daniels, issued a statement in which he

said ‘‘Circumstances have changed radically.’’ The statement was

issued in response to OMB’s finding that the total surplus for Fis- cal Year 2001 is more than $30 billion less than what was predicted on September 26 and less than half the estimate made when

the Administration released its budget last Spring. Yes indeed, circumstances have changed radically. We believe it is the role and

responsibility of the Congress to be able to respond to such dramatic changes in an effective and expeditious manner that does not

shortchange the Nation’s pressing needs as well as its long-term

priorities. We strongly believe it is critical that the Congress be

able to respond to the crisis at hand, a crisis none of us ever wanted, much less ever anticipated. In September, shortly after the attacks on the World Trade Center and the Pentagon, this Congress

passed a $40 billion supplemental to provide the money needed to

immediately respond to the crisis. It is impossible to predict what

further funding will be required to help rebuild the shattered lives

created by that attack, nor is it possible to predict what will be required to provide our military with the funds needed to conduct the

war that has ensued from the attack or to ensure that our bridges,

airports, seaports and harbors, information systems, and health

systems and citizens are safe and can be protected from an enemy

operating in the shadows.

It seems only logical to us that next Spring the Congress must

fashion a new budget resolution that takes into account the longterm effects of September 11, the fact that the U.S. economy is in

a recession, and the fact that there are still pressing needs in our

country that need to be addressed. We are at a loss to explain how

the Congress might have done this a year ago. It is clear that a

budget prepared two and a half years ago could not have anticipated the events of September 11 or our response to them. But that

is also true of a budget prepared two and a half months ago. The

real issue is the difficulty of preparing a two year budget after September 11.

The concept of biennial budgeting has been examined at some

length over any number of years, yet we have seen no really convincing argument that would change our view that a wholesale

change to biennial budgeting is a prudent course of action. We see

the current proposal as a proposal to effect change for the sake of

change rather than furthering a responsible budget framework. We

see the current proposal as one that has little regard for the complex problems facing this nation as we go to war against terrorism,

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as we seek to protect the American public from dangers on our own

shores, and as we do this in the midst of a recessionary economy.

For the reasons enumerated above, as well as in previous dissenting views filed in preceding committee reports, we urge the defeat of this proposal.

MARTIN FROST.

LOUISE SLAUGHTER.

ALCEE L. HASTINGS.

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