I 

109TH CONGRESS 

1ST SESSION H. R. 2860

To encourage Members of Congress and the executive branch to be honest 

with the public about true on-budget circumstances, to exclude the Social 

Security trust funds and the Medicare hospital insurance trust fund 

from the annual Federal budget baseline, to prohibit Social Security 

and Medicare hospital insurance trust funds surpluses to be used as 

offsets for tax cuts or spending increases, and to exclude the Social 

Security trust funds and the Medicare hospital insurance trust fund 

from official budget surplus/deficit pronouncements. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 9, 2005

Mr. SMITH of Washington (for himself and Mr. INSLEE) introduced the following bill; which was referred to the Committee on the Budget, and in 

addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL

To encourage Members of Congress and the executive branch 

to be honest with the public about true on-budget circumstances, to exclude the Social Security trust funds 

and the Medicare hospital insurance trust fund from 

the annual Federal budget baseline, to prohibit Social 

Security and Medicare hospital insurance trust funds 

surpluses to be used as offsets for tax cuts or spending 

increases, and to exclude the Social Security trust funds 

and the Medicare hospital insurance trust fund from 

official budget surplus/deficit pronouncements.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Honesty in Budgeting 

5 Act of 2005’’. 

6 SEC. 2. SENSE OF HOUSE TO ENCOURAGE HONESTY FOR 

7 MEMBERS OF CONGRESS AND EXECUTIVE 

8 BRANCH OFFICIALS. 

9 It is the sense of the House of Representatives that 

10 Members of Congress, executive branch officials, and their 

11 respective representatives should use on-budget numbers 

12 when making public statements regarding the Federal 

13 budget. 

14 SEC. 3. OFF-BUDGET STATUS OF OASDI AND HI TRUST 

15 FUNDS. 

16 Notwithstanding any other provision of law, the re17 ceipts and disbursements of the Federal Old-Age and Sur18 vivors Insurance Trust Fund, the Federal Disability In19 surance Trust Fund, and the Federal Hospital Insurance 

20 Trust Fund shall not be counted as new budget authority, 

21 outlays, receipts, or deficit or surplus for purposes of—

22 (1) the budget of the United States Govern23 ment as submitted by the President, 

24 (2) the congressional budget, or 
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1 (3) the Balanced Budget and Emergency Def2 icit Control Act of 1985. 

3 SEC. 4. REMOVING SOCIAL SECURITY AND MEDICARE 

4 FROM BUDGET SURPLUS/DEFICIT PRO5 NOUNCEMENTS. 

6 (a) REMOVING SOCIAL SECURITY AND MEDICARE

7 FROM BUDGET SURPLUS/DEFICIT PRONOUNCEMENTS.—

8 Title III of the Congressional Budget Act of 1974 is 

9 amended by adding at the end the following section: 

10 ‘‘REMOVING SOCIAL SECURITY AND MEDICARE FROM

11 BUDGET SURPLUS/DEFICIT PRONOUNCEMENTS

12 ‘‘Surplus or Deficit Totals 

13 ‘‘SEC. 316. (a) Any official statement issued by the 

14 Office of Management and Budget or by the Congressional 

15 Budget Office of surplus or deficit totals of the budget 

16 of the United States Government as submitted by the 

17 President or of the surplus or deficit totals of the congres18 sional budget, and any description of, or reference to, such 

19 totals in any official publication or material issued by ei20 ther of such Offices, shall exclude the receipts and dis21 bursements totals of the old-age survivors, and disability 

22 insurance program under title 2 of the Social Security Act 

23 and of the Federal Hospital Insurance Trust Fund under 

24 part A of title 18 of such Act. The Office of Management 

25 and Budget and the Congressional Budget Office shall 

26 issue separate reports on the outlays and revenues of the 
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1 Social Security trust funds and of the Federal Hospital 

2 Insurance Trust Fund. 

3 ‘‘Presentation of Budgetary Aggregates 

4 ‘‘(b) For purposes of chapter 11 of title 31, United 

5 States Code, or this Act, tables and other displays of 

6 budgetary aggregates for the United States Government 

7 of the Director of the Office of Management and Budget 

8 or the Director of the Congressional Budget Office shall 

9 not include receipts or disbursements referred to in sub10 section (a).’’. 

11 (b) CONFORMING AMENDMENT.—The table of con12 tents set forth in section 1(b) of the Congressional Budget 

13 and Impoundment Control Act of 1974 is amended by 

14 adding after the item relating to section 315 the following 

15 new item:

‘‘316. Removing Social Security and Medicare from budget surplus/deficit pronouncements.’’.

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