55–931

106TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 106–91

CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL

YEAR 2000

APRIL 14 (legislative day, APRIL 13), 1999.—Ordered to be printed

Mr. KASICH, from the Committee of Conference,

submitted the following

CONFERENCE REPORT

[To accompany H. Con. Res. 68]

The committee of conference on the disagreeing votes of the

two Houses on the amendment of the Senate to the concurrent resolution (H. Con. Res. 68), establishing the congressional budget for

the United States Government for fiscal year 2000 and setting

forth appropriate budgetary levels for each of fiscal years 2001

through 2009, do pass with the following, having met, after full and

free conference, have agreed to recommend and do recommend to

their respective Houses as follows:

That the House recede from its disagreement to the amendment of the Senate to the text of the resolution and agree to the

same with an amendment as follows:

In lieu of the matter proposed to be inserted by the Senate

amendment, insert the following:

SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL

YEAR 2000.

(a) DECLARATION.—Congress determines and declares that this

resolution is the concurrent resolution on the budget for fiscal year

2000 including the appropriate budgetary levels for fiscal years

2001 through 2009 as authorized by section 301 of the Congressional Budget Act of 1974.

(b) TABLE OF CONTENTS.—The table of contents for this concurrent resolution is as follows:

Sec. 1. Concurrent resolution on the budget for fiscal year 2000.

TITLE I—LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.

Sec. 102. Social security.

Sec. 103. Major functional categories.
2

Sec. 104. Reconciliation of revenue reductions in the Senate.

Sec. 105. Reconciliation of revenue reductions in the House of Representatives.

TITLE II—BUDGETARY RESTRAINTS AND RULEMAKING

Sec. 201. Safe deposit box for social security surpluses.

Sec. 202. Reserve fund for retirement security.

Sec. 203. Reserve fund for medicare.

Sec. 204. Reserve fund for agriculture.

Sec. 205. Tax reduction reserve fund in the Senate.

Sec. 206. Emergency designation point of order in the Senate.

Sec. 207. Pay-as-you-go point of order in the Senate.

Sec. 208. Application and effect of changes in allocations and aggregates.

Sec. 209. Establishment of levels for fiscal year 1999.

Sec. 210. Deficit-neutral reserve fund to foster the employment and independence of

individuals with disabilities in the Senate.

Sec. 211. Reserve fund for fiscal year 2000 surplus.

Sec. 212. Reserve fund for education in the Senate.

Sec. 213. Exercise of rulemaking powers.

TITLE III—SENSE OF CONGRESS, HOUSE, AND SENATE PROVISIONS

Subtitle A—Sense of Congress Provisions

Sec. 301. Sense of Congress on the protection of the social security surpluses.

Sec. 302. Sense of Congress on providing additional dollars to the classroom.

Sec. 303. Sense of Congress on asset-building for the working poor.

Sec. 304. Sense of Congress on child nutrition.

Sec. 305. Sense of Congress concerning funding for special education.

Subtitle B—Sense of the House Provisions

Sec. 311. Sense of the House on the Commission on International Religious Freedom.

Sec. 312. Sense of the House on assessment of welfare-to-work programs.

Subtitle C—Sense of the Senate Provisions

Sec. 321. Sense of the Senate that the Federal Government should not invest the social security trust funds in private financial markets.

Sec. 322. Sense of the Senate regarding the modernization and improvement of the

medicare program.

Sec. 323. Sense of the Senate on education.

Sec. 324. Sense of the Senate on providing tax relief to Americans by returning the

non-social security surplus to taxpayers.

Sec. 325. Sense of the Senate on access to medicare services.

Sec. 326. Sense of the Senate on law enforcement.

Sec. 327. Sense of the Senate on improving security for United States diplomatic

missions.

Sec. 328. Sense of the Senate on increased funding for the National Institutes of

Health.

Sec. 329. Sense of the Senate on funding for Kyoto protocol implementation prior to

Senate ratification.

Sec. 330. Sense of the Senate on TEA–21 funding and the States.

Sec. 331. Sense of the Senate that the one hundred sixth Congress, first session

should reauthorize funds for the farmland protection program.

Sec. 332. Sense of the Senate on the importance of social security for individuals

who become disabled.

Sec. 333. Sense of the Senate on reporting of on-budget trust fund levels.

Sec. 334. Sense of the Senate regarding South Korea’s international trade practices

on pork and beef.

Sec. 335. Sense of the Senate on funding for natural disasters.

TITLE I—LEVELS AND AMOUNTS

SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

The following budgetary levels are appropriate for the fiscal

years 2000 through 2009:

(1) FEDERAL REVENUES.—For purposes of the enforcement

of this resolution—
3

(A) The recommended levels of Federal revenues are as

follows: Fiscal year 2000: $1,408,082,000,000.

Fiscal year 2001: $1,434,837,000,000.

Fiscal year 2002: $1,454,757,000,000.

Fiscal year 2003: $1,531,512,000,000.

Fiscal year 2004: $1,584,969,000,000.

Fiscal year 2005: $1,648,259,000,000.

Fiscal year 2006: $1,681,438,000,000.

Fiscal year 2007: $1,735,646,000,000.

Fiscal year 2008: $1,805,517,000,000.

Fiscal year 2009: $1,868,515,000,000.

(B) The amounts by which the aggregate levels of Federal revenues should be changed are as follows: Fiscal year 2000: $0.

Fiscal year 2001: ¥$7,810,000,000.

Fiscal year 2002: ¥$53,519,000,000.

Fiscal year 2003: ¥$31,806,000,000.

Fiscal year 2004: ¥$49,180,000,000.

Fiscal year 2005: ¥$62,637,000,000.

Fiscal year 2006: ¥$109,275,000,000.

Fiscal year 2007: ¥$135,754,000,000.

Fiscal year 2008: ¥$150,692,000,000.

Fiscal year 2009: ¥$177,195,000,000.

(2) NEW BUDGET AUTHORITY.—For purposes of the enforcement of this resolution, the appropriate levels of total new budget authority are as follows: Fiscal year 2000: $1,426,720,000,000.

Fiscal year 2001: $1,455,785,000,000.

Fiscal year 2002: $1,486,875,000,000.

Fiscal year 2003: $1,559,079,000,000.

Fiscal year 2004: $1,612,910,000,000.

Fiscal year 2005: $1,666,657,000,000.

Fiscal year 2006: $1,698,214,000,000.

Fiscal year 2007: $1,753,326,000,000.

Fiscal year 2008: $1,814,537,000,000.

Fiscal year 2009: $1,874,778,000,000.

(3) BUDGET OUTLAYS.—For purposes of the enforcement of

this resolution, the appropriate levels of total budget outlays are

as follows:

Fiscal year 2000: $1,408,082,000,000.

Fiscal year 2001: $1,434,837,000,000.

Fiscal year 2002: $1,454,757,000,000.

Fiscal year 2003: $1,531,512,000,000.

Fiscal year 2004: $1,583,753,000,000.

Fiscal year 2005: $1,639,568,000,000.

Fiscal year 2006: $1,667,838,000,000.

Fiscal year 2007: $1,717,042,000,000.

Fiscal year 2008: $1,781,865,000,000.

Fiscal year 2009: $1,841,858,000,000.

(4) DEFICITS OR SURPLUSES.—For purposes of the enforcement of this resolution, the amounts of the deficits or surpluses

are as follows:

Fiscal year 2000: $0.
4

Fiscal year 2001: $0.

Fiscal year 2002: $0.

Fiscal year 2003: $0.

Fiscal year 2004: $1,216,000,000.

Fiscal year 2005: $8,691,000,000.

Fiscal year 2006: $13,600,000,000.

Fiscal year 2007: $18,604,000,000.

Fiscal year 2008: $23,652,000,000.

Fiscal year 2009: $26,657,000,000.

(5) PUBLIC DEBT.—The appropriate levels of the public debt

are as follows:

Fiscal year 2000: $5,628,400,000,000.

Fiscal year 2001: $5,708,500,000,000.

Fiscal year 2002: $5,793,500,000,000.

Fiscal year 2003: $5,877,400,000,000.

Fiscal year 2004: $5,956,300,000,000.

Fiscal year 2005: $6,024,600,000,000.

Fiscal year 2006: $6,084,600,000,000.

Fiscal year 2007: $6,136,500,000,000.

Fiscal year 2008: $6,173,900,000,000.

Fiscal year 2009: $6,203,400,000,000.

SEC. 102. SOCIAL SECURITY.

(a) SOCIAL SECURITY REVENUES.—For purposes of Senate enforcement under sections 302, and 311 of the Congressional Budget

Act of 1974, the amounts of revenues of the Federal Old-Age and

Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund are as follows:

Fiscal year 2000: $468,020,000,000.

Fiscal year 2001: $487,744,000,000.

Fiscal year 2002: $506,293,000,000.

Fiscal year 2003: $527,326,000,000.

Fiscal year 2004: $549,876,000,000.

Fiscal year 2005: $576,840,000,000.

Fiscal year 2006: $601,834,000,000.

Fiscal year 2007: $628,277,000,000.

Fiscal year 2008: $654,422,000,000.

Fiscal year 2009: $681,313,000,000.

(b) SOCIAL SECURITY OUTLAYS.—For purposes of Senate enforcement under sections 302, and 311 of the Congressional Budget

Act of 1974, the amounts of outlays of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance

Trust Fund are as follows:

Fiscal year 2000: $327,256,000,000.

Fiscal year 2001: $339,789,000,000.

Fiscal year 2002: $350,127,000,000.

Fiscal year 2003: $362,197,000,000.

Fiscal year 2004: $375,253,000,000.

Fiscal year 2005: $389,485,000,000.

Fiscal year 2006: $404,596,000,000.

Fiscal year 2007: $420,616,000,000.

Fiscal year 2008: $438,132,000,000.

Fiscal year 2009: $459,496,000,000.
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SEC. 103. MAJOR FUNCTIONAL CATEGORIES.

Congress determines and declares that the appropriate levels of

new budget authority and budget outlays for fiscal years 2000

through 2009 for each major functional category are:

(1) National Defense (050):

Fiscal year 2000:

(A) New budget authority, $288,812,000,000.

(B) Outlays, $276,567,000,000.

Fiscal year 2001:

(A) New budget authority, $303,616,000,000.

(B) Outlays, $285,949,000,000.

Fiscal year 2002: (A) New budget authority, $308,175,000,000.

(B) Outlays, $291,714,000,000.

Fiscal year 2003: (A) New budget authority, $318,277,000,000.

(B) Outlays, $303,642,000,000.

Fiscal year 2004:

(A) New budget authority, $327,166,000,000.

(B) Outlays, $313,460,000,000.

Fiscal year 2005:

(A) New budget authority, $328,370,000,000.

(B) Outlays, $316,675,000,000.

Fiscal year 2006:

(A) New budget authority, $329,600,000,000.

(B) Outlays, $315,110,000,000.

Fiscal year 2007:

(A) New budget authority, $330,869,000,000.

(B) Outlays, $313,686,000,000.

Fiscal year 2008:

(A) New budget authority, $332,175,000,000.

(B) Outlays, $317,102,000,000.

Fiscal year 2009: (A) New budget authority, $333,451,000,000.

(B) Outlays, $318,040,000,000.

(2) International Affairs (150):

Fiscal year 2000: (A) New budget authority, $12,511,000,000.

(B) Outlays, $14,850,000,000.

Fiscal year 2001: (A) New budget authority, $11,679,000,000.

(B) Outlays, $15,212,000,000.

Fiscal year 2002: (A) New budget authority, $10,885,000,000.

(B) Outlays, $14,581,000,000.

Fiscal year 2003: (A) New budget authority, $12,590,000,000.

(B) Outlays, $13,977,000,000.

Fiscal year 2004: (A) New budget authority, $13,994,000,000.

(B) Outlays, $13,716,000,000.

Fiscal year 2005: (A) New budget authority, $14,151,000,000.

(B) Outlays, $13,352,000,000.
6

Fiscal year 2006: (A) New budget authority, $14,352,000,000.

(B) Outlays, $13,069,000,000.

Fiscal year 2007: (A) New budget authority, $14,429,000,000.

(B) Outlays, $12,886,000,000.

Fiscal year 2008: (A) New budget authority, $14,498,000,000.

(B) Outlays, $12,701,000,000.

Fiscal year 2009: (A) New budget authority, $14,462,000,000.

(B) Outlays, $12,560,000,000.

(3) General Science, Space, and Technology (250):

Fiscal year 2000: (A) New budget authority, $17,955,000,000.

(B) Outlays, $18,214,000,000.

Fiscal year 2001: (A) New budget authority, $17,946,000,000.

(B) Outlays, $17,907,000,000.

Fiscal year 2002: (A) New budget authority, $17,912,000,000.

(B) Outlays, $17,880,000,000.

Fiscal year 2003: (A) New budget authority, $17,912,000,000.

(B) Outlays, $17,784,000,000.

Fiscal year 2004: (A) New budget authority, $17,912,000,000.

(B) Outlays, $17,772,000,000.

Fiscal year 2005: (A) New budget authority, $17,912,000,000.

(B) Outlays, $17,768,000,000.

Fiscal year 2006: (A) New budget authority, $17,912,000,000.

(B) Outlays, $17,768,000,000.

Fiscal year 2007:

(A) New budget authority, $17,912,000,000

(B) Outlays, $17,768,000,000.

Fiscal year 2008:

(A) New budget authority, $17,912,000,000.

(B) Outlays, $17,768,000,000.

Fiscal year 2009:

(A) New budget authority, $17,912,000,000.

(B) Outlays, $17,768,000,000.

(4) Energy (270):

Fiscal year 2000:

(A) New budget authority, $49,000,000.

(B) Outlays, ¥$650,000,000.

Fiscal year 2001:

(A) New budget authority, ¥$1,435,000,000.

(B) Outlays, ¥$3,136,000,000.

Fiscal year 2002:

(A) New budget authority, ¥$163,000,000.

(B) Outlays, ¥$1,138,000,000.

Fiscal year 2003:
7

(A) New budget authority, ¥$84,000,000.

(B) Outlays, ¥$1,243,000,000.

Fiscal year 2004:

(A) New budget authority, ¥$319,000,000.

(B) Outlays, ¥$1,381,000,000.

Fiscal year 2005:

(A) New budget authority, ¥$447,000,000.

(B) Outlays, ¥$1,452,000,000.

Fiscal year 2006:

(A) New budget authority, ¥$452,000,000.

(B) Outlays, ¥$1,453,000,000.

Fiscal year 2007:

(A) New budget authority, ¥$506,000,000.

(B) Outlays, ¥$1,431,000,000.

Fiscal year 2008:

(A) New budget authority, ¥$208,000,000.

(B) Outlays, ¥$1,137,000,000.

Fiscal year 2009:

(A) New budget authority, ¥$76,000,000.

(B) Outlays, ¥$1,067,000,000.

(5) Natural Resources and Environment (300):

Fiscal year 2000: (A) New budget authority, $22,820,000,000.

(B) Outlays, $22,644,000,000.

Fiscal year 2001: (A) New budget authority, $21,833,000,000.

(B) Outlays, $21,879,000,000.

Fiscal year 2002: (A) New budget authority, $21,597,000,000.

(B) Outlays, $21,223,000,000.

Fiscal year 2003: (A) New budget authority, $22,479,000,000.

(B) Outlays, $22,579,000,000.

Fiscal year 2004:

(A) New budget authority, $22,992,000,000.

(B) Outlays, $23,003,000,000.

Fiscal year 2005:

(A) New budget authority, $23,036,000,000.

(B) Outlays, $22,929,000,000.

Fiscal year 2006:

(A) New budget authority, $23,066,000,000.

(B) Outlays, $22,966,000,000.

Fiscal year 2007:

(A) New budget authority, $23,167,000,000.

(B) Outlays, $22,925,000,000.

Fiscal year 2008:

(A) New budget authority, $23,158,000,000.

(B) Outlays, $22,861,000,000.

Fiscal year 2009:

(A) New budget authority, $23,541,000,000.

(B) Outlays, $23,238,000,000.

(6) Agriculture (350):

Fiscal year 2000:

(A) New budget authority, $14,331,000,000.
8

(B) Outlays, $13,160,000,000.

Fiscal year 2001: (A) New budget authority, $13,519,000,000.

(B) Outlays, $11,279,000,000.

Fiscal year 2002: (A) New budget authority, $11,788,000,000.

(B) Outlays, $10,036,000,000.

Fiscal year 2003: (A) New budget authority, $11,955,000,000.

(B) Outlays, $10,252,000,000.

Fiscal year 2004: (A) New budget authority, $12,072,000,000.

(B) Outlays, $10,526,000,000.

Fiscal year 2005: (A) New budget authority, $10,553,000,000.

(B) Outlays, $9,882,000,000.

Fiscal year 2006: (A) New budget authority, $10,609,000,000.

(B) Outlays, $9,083,000,000.

Fiscal year 2007: (A) New budget authority, $10,711,000,000.

(B) Outlays, $9,145,000,000.

Fiscal year 2008: (A) New budget authority, $10,763,000,000.

(B) Outlays, $9,162,000,000.

Fiscal year 2009: (A) New budget authority, $10,853,000,000.

(B) Outlays, $9,223,000,000.

(7) Commerce and Housing Credit (370):

Fiscal year 2000: (A) New budget authority, $9,664,000,000.

(B) Outlays, $4,270,000,000.

Fiscal year 2001:

(A) New budget authority, $10,620,000,000.

(B) Outlays, $5,754,000,000.

Fiscal year 2002:

(A) New budget authority, $14,450,000,000.

(B) Outlays, $10,188,000,000.

Fiscal year 2003:

(A) New budget authority, $14,529,000,000.

(B) Outlays, $10,875,000,000.

Fiscal year 2004:

(A) New budget authority, $13,859,000,000.

(B) Outlays, $10,439,000,000.

Fiscal year 2005:

(A) New budget authority, $12,660,000,000.

(B) Outlays, $9,437,000,000.

Fiscal year 2006:

(A) New budget authority, $12,635,000,000.

(B) Outlays, $9,130,000,000.

Fiscal year 2007:

(A) New budget authority, $12,666,000,000.

(B) Outlays, $8,879,000,000.

Fiscal year 2008:
9

(A) New budget authority, $12,642,000,000.

(B) Outlays, $8,450,000,000.

Fiscal year 2009: (A) New budget authority, $13,415,000,000.

(B) Outlays, $8,824,000,000.

(8) Transportation (400):

Fiscal year 2000: (A) New budget authority, $51,825,000,000.

(B) Outlays, $45,833,000,000.

Fiscal year 2001: (A) New budget authority, $50,996,000,000.

(B) Outlays, $47,711,000,000.

Fiscal year 2002: (A) New budget authority, $50,845,000,000.

(B) Outlays, $47,265,000,000.

Fiscal year 2003: (A) New budget authority, $52,255,000,000.

(B) Outlays, $46,769,000,000.

Fiscal year 2004: (A) New budget authority, $52,285,000,000.

(B) Outlays, $46,255,000,000.

Fiscal year 2005: (A) New budget authority, $52,314,000,000.

(B) Outlays, $46,071,000,000.

Fiscal year 2006: (A) New budget authority, $52,345,000,000.

(B) Outlays, $46,039,000,000.

Fiscal year 2007: (A) New budget authority, $52,378,000,000.

(B) Outlays, $46,039,000,000.

Fiscal year 2008: (A) New budget authority, $52,412,000,000.

(B) Outlays, $46,056,000,000.

Fiscal year 2009:

(A) New budget authority, $52,447,000,000.

(B) Outlays, $46,082,000,000.

(9) Community and Regional Development (450):

Fiscal year 2000:

(A) New budget authority, $6,369,000,000.

(B) Outlays, $10,462,000,000.

Fiscal year 2001:

(A) New budget authority, $4,011,000,000.

(B) Outlays, $8,298,000,000.

Fiscal year 2002:

(A) New budget authority, $3,608,000,000.

(B) Outlays, $5,857,000,000.

Fiscal year 2003:

(A) New budget authority, $3,851,000,000.

(B) Outlays, $4,536,000,000.

Fiscal year 2004:

(A) New budget authority, $3,828,000,000.

(B) Outlays, $3,812,000,000.

Fiscal year 2005:

(A) New budget authority, $3,819,000,000.
10

(B) Outlays, $3,012,000,000.

Fiscal year 2006: (A) New budget authority, $3,816,000,000.

(B) Outlays, $2,732,000,000.

Fiscal year 2007: (A) New budget authority, $3,810,000,000.

(B) Outlays, $2,606,000,000.

Fiscal year 2008: (A) New budget authority, $3,811,000,000.

(B) Outlays, $2,522,000,000.

Fiscal year 2009: (A) New budget authority, $3,808,000,000.

(B) Outlays, $2,483,000,000.

(10) Education, Training, Employment, and Social Services

(500):

Fiscal year 2000: (A) New budget authority, $66,347,000,000.

(B) Outlays, $63,806,000,000.

Fiscal year 2001: (A) New budget authority, $66,030,000,000.

(B) Outlays, $64,574,000,000.

Fiscal year 2002: (A) New budget authority, $66,476,000,000.

(B) Outlays, $64,847,000,000.

Fiscal year 2003: (A) New budget authority, $70,963,000,000.

(B) Outlays, $67,460,000,000.

Fiscal year 2004: (A) New budget authority, $73,277,000,000.

(B) Outlays, $70,162,000,000.

Fiscal year 2005: (A) New budget authority, $74,093,000,000.

(B) Outlays, $72,672,000,000.

Fiscal year 2006:

(A) New budget authority, $74,858,000,000.

(B) Outlays, $73,843,000,000.

Fiscal year 2007:

(A) New budget authority, $75,762,000,000.

(B) Outlays, $74,748,000,000.

Fiscal year 2008:

(A) New budget authority, $76,773,000,000.

(B) Outlays, $75,738,000,000.

Fiscal year 2009:

(A) New budget authority, $76,680,000,000.

(B) Outlays, $75,688,000,000.

(11) Health (550):

Fiscal year 2000:

(A) New budget authority, $156,181,000,000.

(B) Outlays, $152,986,000,000.

Fiscal year 2001:

(A) New budget authority, $164,089,000,000.

(B) Outlays, $162,357,000,000.

Fiscal year 2002:

(A) New budget authority, $173,330,000,000.
11

(B) Outlays, $173,767,000,000.

Fiscal year 2003: (A) New budget authority, $184,679,000,000.

(B) Outlays, $185,330,000,000.

Fiscal year 2004: (A) New budget authority, $197,893,000,000.

(B) Outlays, $198,499,000,000.

Fiscal year 2005: (A) New budget authority, $212,821,000,000.

(B) Outlays, $212,637,000,000.

Fiscal year 2006: (A) New budget authority, $228,379,000,000.

(B) Outlays, $228,323,000,000.

Fiscal year 2007: (A) New budget authority, $246,348,000,000.

(B) Outlays, $245,472,000,000.

Fiscal year 2008: (A) New budget authority, $265,160,000,000.

(B) Outlays, $264,420,000,000.

Fiscal year 2009: (A) New budget authority, $285,541,000,000.

(B) Outlays, $284,941,000,000.

(12) Medicare (570):

Fiscal year 2000: (A) New budget authority, $208,652,000,000.

(B) Outlays, $208,698,000,000.

Fiscal year 2001: (A) New budget authority, $222,104,000,000.

(B) Outlays, $222,252,000,000.

Fiscal year 2002: (A) New budget authority, $230,593,000,000.

(B) Outlays, $230,222,000,000.

Fiscal year 2003:

(A) New budget authority, $250,743,000,000.

(B) Outlays, $250,871,000,000.

Fiscal year 2004:

(A) New budget authority, $268,558,000,000.

(B) Outlays, $268,738,000,000.

Fiscal year 2005:

(A) New budget authority, $295,574,000,000.

(B) Outlays, $295,188,000,000.

Fiscal year 2006:

(A) New budget authority, $306,772,000,000.

(B) Outlays, $306,929,000,000.

Fiscal year 2007:

(A) New budget authority, $337,566,000,000.

(B) Outlays, $337,761,000,000.

Fiscal year 2008:

(A) New budget authority, $365,642,000,000.

(B) Outlays, $365,225,000,000.

Fiscal year 2009:

(A) New budget authority, $394,078,000,000.

(B) Outlays, $394,249,000,000.

(13) Income Security (600):
12

Fiscal year 2000: (A) New budget authority, $244,390,000,000.

(B) Outlays, $248,088,000,000.

Fiscal year 2001: (A) New budget authority, $250,473,000,000.

(B) Outlays, $257,033,000,000.

Fiscal year 2002: (A) New budget authority, $262,970,000,000.

(B) Outlays, $266,577,000,000.

Fiscal year 2003: (A) New budget authority, $276,386,000,000.

(B) Outlays, $276,176,000,000.

Fiscal year 2004: (A) New budget authority, $286,076,000,000.

(B) Outlays, $285,533,000,000.

Fiscal year 2005: (A) New budget authority, $298,442,000,000.

(B) Outlays, $298,424,000,000.

Fiscal year 2006: (A) New budget authority, $304,655,000,000.

(B) Outlays, $305,093,000,000.

Fiscal year 2007: (A) New budget authority, $310,547,000,000.

(B) Outlays, $311,448,000,000.

Fiscal year 2008: (A) New budget authority, $323,815,000,000.

(B) Outlays, $325,266,000,000.

Fiscal year 2009: (A) New budget authority, $334,062,000,000.

(B) Outlays, $335,604,000,000.

(14) Social Security (650):

Fiscal year 2000: (A) New budget authority, $14,239,000,000.

(B) Outlays, $14,348,000,000.

Fiscal year 2001:

(A) New budget authority, $13,768,000,000.

(B) Outlays, $13,750,000,000.

Fiscal year 2002:

(A) New budget authority, $15,573,000,000.

(B) Outlays, $15,555,000,000.

Fiscal year 2003:

(A) New budget authority, $16,299,000,000.

(B) Outlays, $16,281,000,000.

Fiscal year 2004:

(A) New budget authority, $17,087,000,000.

(B) Outlays, $17,069,000,000.

Fiscal year 2005:

(A) New budget authority, $17,961,000,000.

(B) Outlays, $17,943,000,000.

Fiscal year 2006:

(A) New budget authority, $18,895,000,000.

(B) Outlays, $18,877,000,000.

Fiscal year 2007:

(A) New budget authority, $19,907,000,000.
13

(B) Outlays, $19,889,000,000.

Fiscal year 2008: (A) New budget authority, $21,033,000,000.

(B) Outlays, $21,015,000,000.

Fiscal year 2009: (A) New budget authority, $22,233,000,000.

(B) Outlays, $22,215,000,000.

(15) Veterans Benefits and Services (700):

Fiscal year 2000: (A) New budget authority, $45,424,000,000.

(B) Outlays, $45,564,000,000.

Fiscal year 2001: (A) New budget authority, $44,255,000,000.

(B) Outlays, $44,980,000,000.

Fiscal year 2002: (A) New budget authority, $44,728,000,000.

(B) Outlays, $45,117,000,000.

Fiscal year 2003: (A) New budget authority, $45,897,000,000.

(B) Outlays, $46,385,000,000.

Fiscal year 2004: (A) New budget authority, $46,248,000,000.

(B) Outlays, $46,713,000,000.

Fiscal year 2005: (A) New budget authority, $48,789,000,000.

(B) Outlays, $49,292,000,000.

Fiscal year 2006: (A) New budget authority, $47,266,000,000.

(B) Outlays, $47,812,000,000.

Fiscal year 2007: (A) New budget authority, $47,805,000,000.

(B) Outlays, $46,231,000,000.

Fiscal year 2008:

(A) New budget authority, $48,451,000,000.

(B) Outlays, $48,997,000,000.

Fiscal year 2009:

(A) New budget authority, $49,099,000,000.

(B) Outlays, $49,671,000,000.

(16) Administration of Justice (750):

Fiscal year 2000:

(A) New budget authority, $23,434,000,000.

(B) Outlays, $25,349,000,000.

Fiscal year 2001:

(A) New budget authority, $24,656,000,000.

(B) Outlays, $25,117,000,000.

Fiscal year 2002:

(A) New budget authority, $24,657,000,000.

(B) Outlays, $24,932,000,000.

Fiscal year 2003:

(A) New budget authority, $24,561,000,000.

(B) Outlays, $24,425,000,000.

Fiscal year 2004:

(A) New budget authority, $26,195,000,000.

(B) Outlays, $26,084,000,000.
14

Fiscal year 2005: (A) New budget authority, $26,334,000,000.

(B) Outlays, $26,221,000,000.

Fiscal year 2006: (A) New budget authority, $26,370,000,000.

(B) Outlays, $26,249,000,000.

Fiscal year 2007: (A) New budget authority, $26,403,000,000.

(B) Outlays, $26,285,000,000.

Fiscal year 2008: (A) New budget authority, $26,450,000,000.

(B) Outlays, $26,346,000,000.

Fiscal year 2009: (A) New budget authority, $26,481,000,000.

(B) Outlays, $26,368,000,000.

(17) General Government (800):

Fiscal year 2000: (A) New budget authority, $12,339,000,000.

(B) Outlays, $13,476,000,000.

Fiscal year 2001: (A) New budget authority, $11,916,000,000.

(B) Outlays, $12,605,000,000.

Fiscal year 2002: (A) New budget authority, $12,060,000,000.

(B) Outlays, $12,282,000,000.

Fiscal year 2003: (A) New budget authority, $12,083,000,000.

(B) Outlays, $12,150,000,000.

Fiscal year 2004: (A) New budget authority, $12,099,000,000.

(B) Outlays, $12,186,000,000.

Fiscal year 2005: (A) New budget authority, $12,112,000,000.

(B) Outlays, $11,906,000,000.

Fiscal year 2006:

(A) New budget authority, $12,134,000,000.

(B) Outlays, $11,839,000,000.

Fiscal year 2007:

(A) New budget authority, $12,150,000,000.

(B) Outlays, $11,873,000,000.

Fiscal year 2008:

(A) New budget authority, $12,169,000,000.

(B) Outlays, $12,064,000,000.

Fiscal year 2009:

(A) New budget authority, $12,178,000,000.

(B) Outlays, $11,931,000,000.

(18) Net Interest (900):

Fiscal year 2000:

(A) New budget authority, $275,486,000,000.

(B) Outlays, $275,486,000,000.

Fiscal year 2001:

(A) New budget authority, $271,071,000,000.

(B) Outlays, $271,071,000,000.

Fiscal year 2002:
15

(A) New budget authority, $267,482,000,000.

(B) Outlays, $267,482,000,000.

Fiscal year 2003: (A) New budget authority, $265,200,000,000.

(B) Outlays, $265,200,000,000.

Fiscal year 2004: (A) New budget authority, $263,498,000,000.

(B) Outlays, $263,498,000,000.

Fiscal year 2005: (A) New budget authority, $261,143,000,000.

(B) Outlays, $261,143,000,000.

Fiscal year 2006: (A) New budget authority, $258,985,000,000.

(B) Outlays, $258,985,000,000.

Fiscal year 2007: (A) New budget authority, $257,468,000,000.

(B) Outlays, $257,468,000,000.

Fiscal year 2008: (A) New budget authority, $255,085,000,000.

(B) Outlays, $255,085,000,000.

Fiscal year 2009: (A) New budget authority, $252,968,000,000.

(B) Outlays, $252,968,000,000.

(19) Allowances (920):

Fiscal year 2000:

(A) New budget authority, ¥$9,833,000,000.

(B) Outlays, ¥$10,794,000,000.

Fiscal year 2001:

(A) New budget authority, ¥$8,481,000,000.

(B) Outlays, ¥$12,874,000,000.

Fiscal year 2002:

(A) New budget authority, ¥$6,437,000,000.

(B) Outlays, ¥$19,976,000,000.

Fiscal year 2003:

(A) New budget authority, ¥$4,394,000,000.

(B) Outlays, ¥$4,835,000,000.

Fiscal year 2004:

(A) New budget authority, ¥$4,481,000,000.

(B) Outlays, ¥$5,002,000,000.

Fiscal year 2005:

(A) New budget authority, ¥$4,515,000,000.

(B) Outlays, ¥$5,067,000,000.

Fiscal year 2006:

(A) New budget authority, ¥$4,619,000,000.

(B) Outlays, ¥$5,192,000,000.

Fiscal year 2007:

(A) New budget authority, ¥$5,210,000,000.

(B) Outlays, ¥$5,780,000,000.

Fiscal year 2008:

(A) New budget authority, ¥$5,279,000,000.

(B) Outlays, ¥$5,851,000,000.

Fiscal year 2009:

(A) New budget authority, ¥$5,316,000,000.

(B) Outlays, ¥$5,889,000,000.
16

(20) Undistributed Offsetting Receipts (950):

Fiscal year 2000:

(A) New budget authority, ¥$34,275,000,000.

(B) Outlays, ¥$34,275,000,000.

Fiscal year 2001:

(A) New budget authority, ¥$36,881,000,000.

(B) Outlays, ¥$36,881,000,000.

Fiscal year 2002:

(A) New budget authority, ¥$43,654,000,000.

(B) Outlays, ¥$43,654,000,000.

Fiscal year 2003:

(A) New budget authority, ¥$37,102,000,000.

(B) Outlays, ¥$37,102,000,000.

Fiscal year 2004:

(A) New budget authority, ¥$37,329,000,000.

(B) Outlays, ¥$37,329,000,000.

Fiscal year 2005:

(A) New budget authority, ¥$38,465,000,000.

(B) Outlays, ¥$38,465,000,000.

Fiscal year 2006:

(A) New budget authority, ¥$39,364,000,000.

(B) Outlays, ¥$39,364,000,000.

Fiscal year 2007:

(A) New budget authority, ¥$40,856,000,000.

(B) Outlays, ¥$40,856,000,000.

Fiscal year 2008:

(A) New budget authority, ¥$41,925,000,000.

(B) Outlays, ¥$41,925,000,000.

Fiscal year 2009:

(A) New budget authority, ¥$43,039,000,000.

(B) Outlays, ¥$43,039,000,000.

SEC. 104. RECONCILIATION OF REVENUE REDUCTIONS IN THE SENATE.

Not later than July 23, 1999, the Senate Committee on Finance

shall report to the Senate a reconciliation bill proposing changes in

laws within its jurisdiction necessary to reduce revenues by not

more than $0 in fiscal year 2000, $142,315,000,000 for the period

of fiscal years 2000 through 2004, and $777,868,000 for the period

of fiscal years 2000 through 2009.

SEC. 105. RECONCILIATION OF REVENUE REDUCTIONS IN THE HOUSE

OF REPRESENTATIVES.

Not later than July 16, 1999, the Committee on Ways and

Means shall report to the House of Representatives a reconciliation

bill proposing changes in laws within its jurisdiction necessary to

reduce revenues by not more than $0 in fiscal year 2000,

$142,315,000,000 for the period of fiscal years 2000 through 2004,

and $777,868,000,000 for the period of fiscal years 2000 through

2009.

TITLE II—BUDGETARY RESTRAINTS AND RULEMAKING

SEC. 201. SAFE DEPOSIT BOX FOR SOCIAL SECURITY SURPLUSES.

(a) FINDINGS.—Congress finds that—
17

(1) under the Budget Enforcement Act of 1990, the social

security trust funds are off-budget for purposes of the President’s budget submission and the concurrent resolution on the

budget;

(2) the social security trust funds have been running surpluses for 17 years;

(3) these surpluses have been used to implicitly finance the

general operations of the Federal Government;

(4) in fiscal year 2000, the social security surplus will exceed $137 billion;

(5) for the first time, a concurrent resolution on the budget

balances the Federal budget without counting the social security

surpluses;

(6) the only way to ensure that social security surpluses are

not diverted for other purposes is to balance the budget exclusive of such surpluses; and

(7) Congress and the President should take such steps as

are necessary to ensure that future budgets are balanced excluding the surpluses generated by the social security trust funds.

(b) POINT OF ORDER.—

(1) IN GENERAL.—It shall not be in order in the House of

Representatives or the Senate to consider any revision to this

resolution or a concurrent resolution on the budget for fiscal

year 2001, or any amendment thereto or conference report thereon, that sets forth a deficit for any fiscal year.

(2) DEFICIT LEVELS.—For purposes of this subsection—

(A) a deficit shall be the level (if any) set forth in the

most recently agreed to concurrent resolution on the budget

for that fiscal year pursuant to section 301(a)(3) of the Congressional Budget Act of 1974; and

(B) in setting forth the deficit level pursuant to section

301(a)(3) of the Congressional Budget Act of 1974, that

level shall not include any adjustments in aggregates that

would be made pursuant to any reserve fund that provides

for adjustments in allocations and aggregates for legislation that enhances retirement security through structural

programmatic reform.

(3) EXCEPTION.—Paragraph (1) shall not apply if the deficit

for a fiscal year results solely from legislation enacted pursuant

to section 202.

(4) BUDGET COMMITTEE DETERMINATIONS.—For purposes of

this subsection, the levels of new budget authority, outlays, direct spending, new entitlement authority, revenues, deficits, and

surpluses for a fiscal year shall be determined on the basis of

estimates made by the Committee on the Budget of the House

of Representatives or the Senate, as applicable.

SEC. 202. RESERVE FUND FOR RETIREMENT SECURITY.

Whenever the Committee on Ways and Means of the House or

the Committee on Finance of the Senate reports a bill, or an amendment thereto is offered, or a conference report thereon is submitted

that enhances retirement security through structural programmatic

reform, the appropriate chairman of the Committee on the Budget

may—
18

(1) increase the appropriate allocations and aggregates of

new budget authority and outlays by the amount of new budget

authority provided by such measure (and outlays flowing therefrom) for that purpose;

(2) in the Senate, adjust the levels used for determining

compliance with the pay-as-you-go requirements of section 207;

and

(3) reduce the revenue aggregates by the amount of the revenue loss resulting from that measure for that purpose.

SEC. 203. RESERVE FUND FOR MEDICARE.

(a) IN GENERAL.—Whenever the Committee on Ways and Means

of the House or the Committee on Finance of the Senate reports a

bill, or an amendment thereto is offered (in the House), or a conference report thereon is submitted that implements structural medicare reform and significantly extends the solvency of the Medicare

Hospital Insurance Trust Fund without the use of transfers of new

subsidies from the general fund, the appropriate chairman of the

Committee on the Budget may change committee allocations and

spending aggregates if such legislation will not cause an on-budget

deficit for—

(1) fiscal year 2000;

(2) the period of fiscal years 2000 through 2004; or

(3) the period of fiscal years 2005 through 2009.

(b) PRESCRIPTION DRUG BENEFIT.—The adjustments made pursuant to subsection (a) may be made to address the cost of the prescription drug benefit.

SEC. 204. RESERVE FUND FOR AGRICULTURE.

(a) ADJUSTMENT.—

(1) IN GENERAL.—Whenever the Committee on Agriculture

of the House or the Committee on Agriculture, Nutrition, and

Forestry of the Senate reports a bill, or an amendment thereto

is offered (in the House), or a conference report thereon is submitted that provides risk management or income assistance for

agriculture producers that complies with paragraph (2), the appropriate Chairman of the Committee on the Budget shall increase the allocation of budget authority and outlays to that

committee by the amount of budget authority (and the outlays

resulting therefrom) provided by that legislation for such purpose in accordance with subsection (b).

(2) CONDITION.—Legislation complies with this paragraph

if it does not cause a net increase in budget authority or outlays

for fiscal year 2000 and does not cause a net increase in budget

authority that is greater than $2,000,000,000 for any of fiscal

years 2001 through 2004.

(b) LIMITATIONS.—The adjustments to the allocations required

by subsection (a) shall not exceed—

(1) $6,000,000,000 in budget authority (and the outlays resulting therefrom) for the period of fiscal years 2000 through

2004; and

(2) $6,000,000,000 in budget authority and outlays for the

period of fiscal years 2000 through 2009.
19

SEC. 205. TAX REDUCTION RESERVE FUND IN THE SENATE.

In the Senate, the Chairman of the Committee on the Budget

may reduce the spending and revenue aggregates and may revise

committee allocations for legislation that reduces revenues if such

legislation will not increase the deficit or decrease the surplus for—

(1) fiscal year 2000;

(2) the period of fiscal years 2000 through 2004; or

(3) the period of fiscal years 2000 through 2009.

SEC. 206. EMERGENCY DESIGNATION POINT OF ORDER IN THE SENATE.

(a) DESIGNATIONS.—

(1) GUIDANCE.—In making a designation of a provision of

legislation as an emergency requirement under section

251(b)(2)(A) or 252(e) of the Balanced Budget and Emergency

Deficit Control Act of 1985, the committee report and any statement of managers accompanying that legislation shall analyze

whether a proposed emergency requirement meets all the criteria in paragraph (2).

(2) CRITERIA.—

(A) IN GENERAL.—The criteria to be considered in determining whether a proposed expenditure or tax change is

an emergency requirement are whether it is—

(i) necessary, essential, or vital (not merely useful

or beneficial);

(ii) sudden, quickly coming into being, and not

building up over time;

(iii) an urgent, pressing, and compelling need requiring immediate action;

(iv) subject to subparagraph (B), unforeseen, unpredictable, and unanticipated; and

(v) not permanent, temporary in nature.

(B) UNFORESEEN.—An emergency that is part of an aggregate level of anticipated emergencies, particularly when

normally estimated in advance, is not unforeseen.

(3) JUSTIFICATION FOR FAILURE TO MEET CRITERIA.—If the

proposed emergency requirement does not meet all the criteria

set forth in paragraph (2), the committee report or the statement

of managers, as the case may be, shall provide a written justification of why the requirement should be accorded emergency

status.

(b) POINT OF ORDER.—When the Senate is considering a bill,

resolution, amendment, motion, or conference report, a point of

order may be made by a Senator against an emergency designation

in that measure and if the Presiding Officer sustains that point of

order, that provision making such a designation shall be stricken

from the measure and may not be offered as an amendment from

the floor.

(c) WAIVER AND APPEAL.—This section may be waived or suspended in the Senate only by an affirmative vote of three-fifths of

the members, duly chosen and sworn. An affirmative vote of threefifths of the Members of the Senate, duly chosen and sworn, shall

be required in the Senate to sustain an appeal of the ruling of the

Chair on a point of order raised under this section.
20

(d) DEFINITION OF AN EMERGENCY REQUIREMENT.—A provision

shall be considered an emergency designation if it designates any

item an emergency requirement pursuant to section 251(b)(2)(A) or

252(e) of the Balanced Budget and Emergency Deficit Control Act

of 1985.

(e) FORM OF THE POINT OF ORDER.—A point of order under this

subsection may be raised by a Senator as provided in section 313(e)

of the Congressional Budget Act of 1974.

(f) CONFERENCE REPORTS.—If a point of order is sustained

under this section against a conference report the report shall be

disposed of as provided in section 313(d) of the Congressional Budget Act of 1974.

(g) EXCEPTION FOR DEFENSE SPENDING.—Subsection (b) shall

not apply against an emergency designation for a provision making

discretionary appropriations in the defense category.

(h) SUNSET.—This section shall expire on the adoption of the

concurrent resolution on the budget for fiscal year 2001.

SEC. 207. PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.

(a) PURPOSE.—The Senate declares that it is essential to—

(1) ensure continued compliance with the balanced budget

plan set forth in this resolution; and

(2) continue the pay-as-you-go enforcement system.

(b) POINT OF ORDER.— (1) IN GENERAL.—It shall not be in order in the Senate to

consider any direct spending or revenue legislation that would

increase the on-budget deficit or cause an on-budget deficit for

any one of the three applicable time periods as measured in

paragraphs (5) and (6).

(2) APPLICABLE TIME PERIODS.—For purposes of this subsection the term ‘‘applicable time period’’ means any one of the

three following periods:

(A) The first year covered by the most recently adopted

concurrent resolution on the budget.

(B) The period of the first five fiscal years covered by

the most recently adopted concurrent resolution on the

budget.

(C) The period of the five fiscal years following the first

five fiscal years covered in the most recently adopted concurrent resolution on the budget.

(3) DIRECT-SPENDING LEGISLATION.—For purposes of this

subsection and except as provided in paragraph (4), the term

‘‘direct-spending legislation’’ means any bill, joint resolution,

amendment, motion, or conference report that affects direct

spending as that term is defined by and interpreted for purposes of the Balanced Budget and Emergency Deficit Control

Act of 1985.

(4) EXCLUSION.—For purposes of this subsection, the terms

‘‘direct-spending legislation’’ and ‘‘revenue legislation’’ do not

include—

(A) any concurrent resolution on the budget; or

(B) any provision of legislation that affects the full

funding of, and continuation of, the deposit insurance

guarantee commitment in effect on the date of enactment of

the Budget Enforcement Act of 1990.
21

(5) BASELINE.—Estimates prepared pursuant to this section

shall—

(A) use the baseline used for the most recently adopted

concurrent resolution on the budget; and

(B) be calculated under the requirements of subsections

(b) through (d) of section 257 of the Balanced Budget and

Emergency Deficit Control Act of 1985 for fiscal years beyond those covered by that concurrent resolution on the

budget.

(6) PRIOR SURPLUS.—If direct spending or revenue legislation increases the on-budget deficit or causes an on-budget deficit when taken individually, then it must also increase the onbudget deficit or cause an on-budget deficit when taken together

with all direct spending and revenue legislation enacted since

the beginning of the calendar year not accounted for in the

baseline under paragraph (5)(A).

(c) WAIVER.—This section may be waived or suspended in the

Senate only by the affirmative vote of three-fifths of the Members,

duly chosen and sworn.

(d) APPEALS.—Appeals in the Senate from the decisions of the

Chair relating to any provision of this section shall be limited to 1

hour, to be equally divided between, and controlled by, the appellant

and the manager of the bill or joint resolution, as the case may be.

An affirmative vote of three-fifths of the Members of the Senate,

duly chosen and sworn, shall be required in the Senate to sustain

an appeal of the ruling of the Chair on a point of order raised

under this section.

(e) DETERMINATION OF BUDGET LEVELS.—For purposes of this

section, the levels of new budget authority, outlays, and revenues for

a fiscal year shall be determined on the basis of estimates made by

the Committee on the Budget of the Senate.

(f) CONFORMING AMENDMENT.—Section 202 of House Concurrent Resolution 67 (104th Congress) is repealed.

(g) SUNSET.—Subsections (a) through (e) of this section shall expire September 30, 2002.

SEC. 208. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS

AND AGGREGATES.

(a) APPLICATION.—Any adjustments of allocations and aggregates made pursuant to this resolution for any measure shall—

(1) apply while that measure is under consideration;

(2) take effect upon the enactment of that measure; and

(3) be published in the Congressional Record as soon as

practicable.

(b) EFFECT OF CHANGED ALLOCATIONS AND AGGREGATES.—Revised allocations and aggregates resulting from these adjustments

shall be considered for the purposes of the Congressional Budget Act

of 1974 as allocations and aggregates contained in this resolution.

(c) ENFORCEMENT IN THE HOUSE.—In the House, for the purpose of enforcing this resolution, sections 302(f) and 311(a) of the

Congressional Budget Act of 1974 shall apply to fiscal year 2000

and the total for fiscal year 2000 and the 4 ensuing fiscal years.
22

SEC. 209. ESTABLISHMENT OF LEVELS FOR FISCAL YEAR 1999.

The levels submitted pursuant to H. Res. 5 of the 106th Congress or S. Res. 312 of the 105th Congress, and any revisions authorized by such resolutions, shall be considered to be the levels and

revisions of the concurrent resolution on the budget for fiscal year

1999.

SEC. 210. DEFICIT-NEUTRAL RESERVE FUND TO FOSTER THE EMPLOYMENT AND INDEPENDENCE OF INDIVIDUALS WITH DISABILITIES IN THE SENATE.

(a) IN GENERAL.—In the Senate, revenue and spending aggregates and other appropriate budgetary levels and limits may be adjusted and allocations may be revised for legislation that finances

disability programs designed to allow individuals with disabilities

to become employed and remain independent if, to the extent that

this concurrent resolution on the budget does not include the costs

of that legislation, the enactment of that legislation will not increase

the deficit or decrease the surplus in this resolution for—

(1) fiscal year 2000;

(2) the period of fiscal years 2000 through 2004; or

(3) the period of fiscal years 2005 through 2009.

(b) REVISED ALLOCATIONS.—

(1) ADJUSTMENTS FOR LEGISLATION.—Upon the consideration of legislation pursuant to subsection (a), the Chairman of

the Committee on the Budget of the Senate may file with the

Senate appropriately-revised allocations under section 302(a) of

the Congressional Budget Act of 1974 and revised functional

levels and aggregates to carry out this section.

(2) ADJUSTMENTS FOR AMENDMENTS.—If the chairman of

the Committee on the Budget of the Senate submits an adjustment under this section for legislation in furtherance of the purpose described in subsection (a), upon the offering of an amendment to that legislation that would necessitate such submission,

the Chairman shall submit to the Senate appropriately-revised

allocations under section 302(a) of the Congressional Budget

Act of 1974 and revised functional levels and aggregates to

carry out this section.

SEC. 211. RESERVE FUND FOR A FISCAL YEAR 2000 SURPLUS.

(a) CONGRESSIONAL BUDGET OFFICE UPDATED BUDGET FORECAST FOR FISCAL YEAR 2000.—Pursuant to section 202(e)(2) of the

Congressional Budget Act of 1974, the Congressional Budget Office

shall update its economic and budget forecast for fiscal year 2000

by July 1, 1999.

(b) REPORTING A SURPLUS.—If the report provided pursuant to

subsection (a) estimates an on-budget surplus for fiscal year 2000,

the appropriate Chairman of the Committee on the Budget may

make the adjustments as provided in subsection (c).

(c) ADJUSTMENTS.—The appropriate Chairman of the Committee on the Budget may make the following adjustments in an

amount equal to the on-budget surplus for fiscal year 2000 as estimated in the report submitted pursuant to subsection (a)—

(1) reduce the on-budget revenue aggregate by that amount

for fiscal year 2000;
23

(2) increase the on-budget surplus levels used for determining compliance with the pay-as-you-go requirements of section

207; and

(3) adjust the instruction in sections 104 and 105 of this

resolution to—

(A) reduce revenues by that amount for fiscal year

2000; and

(B) increase the reduction in revenues for the period of

fiscal years 2000 through 2004 and for the period of fiscal

years 2000 through 2009 by that amount.

SEC. 212. RESERVE FUND FOR EDUCATION IN THE SENATE.

(a) IN GENERAL.—In the Senate, upon reporting of a bill, the offering of an amendment thereto, or the submission of a conference

report thereon that allows local educational agencies to use appropriated funds to carry out activities under part B of the Individuals

with Disabilities Education Act that complies with subsection (b),

the Chairman of the Committee on the Budget of the Senate may—

(1) increase the outlay aggregate and allocation for fiscal year 2000 by not more than $360,000,000; and

(2) adjust the levels used for determining compliance with

the pay-as-you-go requirements of section 207.

(b) CONDITION.—Legislation complies with this subsection if it

does not cause a net increase in budget authority or outlays for the

periods of fiscal years 2000 through 2004 and 2000 through 2009.

SEC. 213. EXERCISE OF RULEMAKING POWERS.

Congress adopts the provisions of this title—

(1) as an exercise of the rulemaking power of the Senate

and the House of Representatives, respectively, and as such they

shall be considered as part of the rules of each House, or of that

House to which they specifically apply, and such rules shall supersede other rules only to the extent that they are inconsistent

therewith; and

(2) with full recognition of the constitutional right of either

House to change those rules (so far as they relate to that House)

at any time, in the same manner, and to the same extent as in

the case of any other rule of that House.

TITLE III—SENSE OF CONGRESS, HOUSE, AND SENATE

PROVISIONS

Subtitle A—Sense of Congress Provisions

SEC. 301. SENSE OF CONGRESS ON THE PROTECTION OF THE SOCIAL

SECURITY SURPLUSES.

(a) FINDINGS.—Congress finds that—

(1) Congress and the President should balance the budget

excluding the surpluses generated by the social security trust

funds;

(2) reducing the Federal debt held by the public is a top national priority, strongly supported on a bipartisan basis, as evidenced by Federal Reserve Chairman Alan Greenspan’s comment that debt reduction ‘‘is a very important element in sustaining economic growth’’, as well as President Clinton’s comments that it ‘‘is very, very important that we get the Govern-
24

ment debt down’’ when referencing his own plans to use the

budget surplus to reduce Federal debt held by the public;

(3) according to the Congressional Budget Office, balancing

the budget excluding the surpluses generated by the social security trust funds will reduce debt held by the public by a total

of $1,723,000,000,000 by the end of fiscal year 2009,

$417,000,000,000, or 32 percent, more than it would be reduced

under the President’s fiscal year 2000 budget submission;

(4) further, according to the Congressional Budget Office,

that the President’s budget would actually spend

$40,000,000,000 of the social security surpluses in fiscal year

2000 on new spending programs, and spend $158,000,000,000

of the social security surpluses on new spending programs from

fiscal year 2000 through 2004; and

(5) social security surpluses should be used for social security reform, retirement security, or to reduce the debt held by

the public and should not be used for other purposes.

(b) SENSE OF CONGRESS.—It is the sense of Congress that the

functional totals in this concurrent resolution on the budget assume

that Congress shall pass legislation which—

(1) reaffirms the provisions of section 13301 of the Omnibus

Budget Reconciliation Act of 1990 that provides that the receipts and disbursements of the social security trust funds shall

not be counted for the purposes of the budget submitted by the

President, the congressional budget, or the Balanced Budget

and Emergency Deficit Control Act of 1985, and provides for a

point of order within the Senate against any concurrent resolution on the budget, an amendment thereto, or a conference report thereon that violates that section;

(2) mandates that the social security surpluses are used

only for the payment of social security benefits, retirement security, social security reform, or to reduce the Federal debt held

by the public and such mandate shall be implemented by establishing a supermajority point of order in the Senate against

limits established on the level of debt held by the public;

(3) provides for a Senate super-majority point of order

against any bill, resolution, amendment, motion or conference

report that would use social security surpluses on anything

other than the payment of social security benefits, social security reform, retirement security, or the reduction of the Federal

debt held by the public;

(4) ensures that all social security benefits are paid on time;

and

(5) accommodates social security reform legislation.

SEC. 302. SENSE OF CONGRESS ON PROVIDING ADDITIONAL DOLLARS

TO THE CLASSROOM.

(a) FINDINGS.—Congress finds that—

(1) strengthening America’s public schools while respecting

State and local control is critically important to the future of

our children and our Nation;

(2) education is a local responsibility, a State priority, and

a national concern;
25

(3) working with the Nation’s governors, parents, teachers,

and principals must take place in order to strengthen public

schools and foster educational excellence;

(4) education initiatives should boost academic achievement

for all students; and excellence in American classrooms means

having high expectations for all students, teachers, and administrators, and holding schools accountable to the children and

parents served by such schools;

(5) successful schools and school systems are characterized

by parental involvement in the education of their children, local

control, emphasis on basic academics, emphasis on fundamental skills and exceptional teachers in the classroom;

(6) the one-size-fits-all approach to education often creates

barriers to innovation and reform initiatives at the local level;

America’s rural schools face challenges quite different from

their urban counterparts; and parents, teachers and State and

local officials should have the freedom to tailor their education

plans and reforms according to the unique educational needs of

their children;

(7) the consolidation of various Federal education programs

will benefit our Nation’s children, parents, and teachers by

sending more dollars directly to the classroom; and

(8) our Nation’s children deserve an educational system

that will provide opportunities to excel.

(b) SENSE OF CONGRESS.—It is the sense of Congress that—

(1) Congress should enact legislation that would consolidate thirty-one Federal K–12 education programs;

(2) the Department of Education, the States, and local educational agencies should work together to ensure that not less

than 95 percent of all funds appropriated for the purpose of carrying out elementary and secondary education programs administered by the Department of Education is spent for our children in their classrooms;

(3) increased funding for elementary and secondary education should be directed to States and local school districts;

and

(4) decision making authority should be placed in the

hands of States, localities, and families to implement innovative

solutions to local educational challenges and to increase the

performance of all students, unencumbered by unnecessary Federal rules and regulations.

SEC. 303. SENSE OF CONGRESS ON ASSET-BUILDING FOR THE WORKING POOR.

(a) FINDINGS.—Congress finds the following:

(1) 33 percent of all American households and 60 percent

of African American households have no or negative financial

assets.

(2) 46.9 percent of all children in America live in households with no financial assets, including 40 percent of Caucasian children and 75 percent of African American children.

(3) In order to provide low-income families with more tools

for empowerment, incentives which encourage asset-building

should be established.
26

(4) Across the Nation, numerous small public, private, and

public-private asset-building incentives, including individual

development accounts, are demonstrating success at empowering low-income workers.

(5) Middle and upper income Americans currently benefit

from tax incentives for building assets.

(6) The Federal Government should utilize the Federal tax

code to provide low-income Americans with incentives to work

and build assets in order to escape poverty permanently.

(b) SENSE OF CONGRESS.—It is the sense of Congress that the

provisions of this resolution assume that Congress should modify

the Federal tax law to include provisions which encourage low-income workers and their families to save for buying a first home,

starting a business, obtaining an education, or taking other measures to prepare for the future.

SEC. 304. SENSE OF CONGRESS ON CHILD NUTRITION.

(a) FINDINGS.—Congress finds that—

(1) both Republicans and Democrats understand that an

adequate diet and proper nutrition are essential to a child’s

general well-being;

(2) the lack of an adequate diet and proper nutrition may

adversely affect a child’s ability to perform up to his or her ability in school;

(3) the Government currently plays a role in funding school

nutrition programs; and

(4) there is a bipartisan commitment to helping children

learn.

(b) SENSE OF CONGRESS.—It is the sense of Congress that in the

House the Committee on Education and the Workforce and the Committee on Agriculture and in the Senate the Committee on Agriculture, Nutrition, and Forestry should examine our Nation’s nutrition programs to determine if they can be improved, particularly

with respect to services to low-income children.

SEC. 305. SENSE OF CONGRESS CONCERNING FUNDING FOR SPECIAL

EDUCATION.

(a) FINDINGS.—Congress makes the following findings:

(1) In the Individuals with Disabilities Education Act (20

U.S.C. 1400 et seq.) (referred to in this resolution as the ‘‘Act’’),

Congress found that improving educational results for children

with disabilities is an essential element of our national policy

of ensuring equality of opportunity, full participation, independent living, and economic self-sufficiency for individuals with

disabilities.

(2) In the Act, the Secretary of Education is instructed to

make grants to States to assist them in providing special education and related services to children with disabilities.

(3) The Act represents a commitment by the Federal Government to fund 40 percent of the average per-pupil expenditure

in public elementary and secondary schools in the United

States.

(4) The budget submitted by the President for fiscal year

2000 ignores the commitment by the Federal Government under

the Act to fund special education and instead proposes the cre-
27

ation of new programs that limit the manner in which States

may spend the limited Federal education dollars received.

(5) The budget submitted by the President for fiscal year

2000 fails to increase funding for special education, and leaves

States and localities with an enormous unfunded mandate to

pay for growing special education costs.

(b) SENSE OF CONGRESS.—It is the sense of Congress that the

budgetary levels in this resolution assume that part B of the Individuals with Disabilities Act (20 U.S.C. 1400 et seq.) should be fully

funded at the originally promised level before any funds are appropriated for new education programs.

Subtitle B—Sense of the House Provisions

SEC. 311. SENSE OF THE HOUSE ON THE COMMISSION ON INTERNATIONAL RELIGIOUS FREEDOM.

(a) FINDINGS.—The House finds that—

(1) persecution of individuals on the sole ground of their religious beliefs and practices occurs in countries around the

world and affects millions of lives;

(2) such persecution violates international norms of human

rights, including those established in the Universal Declaration

of Human Rights, the International Covenant on Civil and Political Rights, the Helsinki Accords, and the Declaration on the

Elimination of all Forms of Intolerance and Discrimination

Based on Religion or Belief;

(3) such persecution is abhorrent to all Americans, and our

very Nation was founded on the principle of the freedom to worship according to the dictates of our conscience; and

(4) in 1998 Congress unanimously passed, and President

Clinton signed into law, the International Religious Freedom

Act of 1998, which established the United States Commission

on International Religious Freedom to monitor facts and circumstances of violations of religious freedom and authorized

$3,000,000 to carry out the functions of the Commission for

each of fiscal years 1999 and 2000.

(b) SENSE OF THE HOUSE.—It is the sense of the House that— (1) this resolution assumes that $3,000,000 will be appropriated within function 150 for fiscal year 2000 for the United

States Commission on International Religious Freedom to carry

out its duties; and

(2) the House Committee on Appropriations is strongly

urged to appropriate such amount for the Commission.

SEC. 312. SENSE OF THE HOUSE ON ASSESSMENT OF WELFARE-TOWORK PROGRAMS.

(a) IN GENERAL.—It is the sense of the House that, recognizing

the need to maximize the benefit of the Welfare-to-Work Program,

the Secretary of Labor should prepare a report on Welfare-to-Work

Programs pursuant to section 403(a)(5) of the Social Security Act.

This report should include information on the following—

(1) the extent to which the funds available under such section have been used (including the number of States that have

not used any of such funds), the types of programs that have

received such funds, the number of and characteristics of the recipients of assistance under such programs, the goals of such
28

programs, the duration of such programs, the costs of such programs, any evidence of the effects of such programs on such recipients, and accounting of the total amount expended by the

States from such funds, and the rate at which the Secretary expects such funds to be expended for each of the fiscal years

2000, 2001, and 2002;

(2) with regard to the unused funds allocated for Welfareto-Work for each of fiscal years 1998 and 1999, identify areas

of the Nation that have unmet needs for Welfare-to-Work initiatives; and

(3) identify possible Congressional action that may be taken

to reprogram Welfare-to-Work funds from States that have not

utilized previously allocated funds to places of unmet need, including those States that have rejected or otherwise not utilized

prior funding.

(b) REPORT.—It is the sense of the House that, not later than

January 1, 2000, the Secretary of Labor should submit to the Committee on the Budget and the Committee on Ways and Means of the

House and the Committee on Finance of the Senate, in writing, the

report described in subsection (a).

Subtitle C—Sense of the Senate Provisions

SEC. 321. SENSE OF THE SENATE THAT THE FEDERAL GOVERNMENT

SHOULD NOT INVEST THE SOCIAL SECURITY TRUST

FUNDS IN PRIVATE FINANCIAL MARKETS.

It is the sense of the Senate that the assumptions underlying the

functional totals in this resolution assume that the Federal Government should not directly invest contributions made to the Federal

Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the

Social Security Act (42 U.S.C. 401) in private financial markets.

SEC. 322. SENSE OF THE SENATE REGARDING THE MODERNIZATION

AND IMPROVEMENT OF THE MEDICARE PROGRAM.

(a) FINDINGS.—The Senate finds the following:

(1) The health insurance coverage provided under the medicare program under title XVIII of the Social Security Act (42

U.S.C. 1395 et seq.) is an integral part of the financial security

for retired and disabled individuals, as such coverage protects

those individuals against the financially ruinous costs of a

major illness.

(2) Expenditures under the medicare program for hospital,

physician, and other essential health care services that are provided to nearly 39,000,000 retired and disabled individuals will

be $232,000,000,000 in fiscal year 2000.

(3) During the nearly 35 years since the medicare program

was established, the Nation’s health care delivery and financing

system has undergone major transformations. However, the

medicare program has not kept pace with such transformations.

(4) Former Congressional Budget Office Director Robert

Reischauer has described the medicare program as it exists

today as failing on the following 4 key dimensions (known as

the ‘‘Four I’s’’):

(A) The program is inefficient.

(B) The program is inequitable.
29

(C) The program is inadequate.

(D) The program is insolvent.

(5) The President’s budget framework does not devote 15

percent of the budget surpluses to the medicare program. The

Federal budget process does not provide a mechanism for setting aside current surpluses for future obligations. As a result,

the notion of saving 15 percent of the surplus for the medicare

program cannot practically be carried out.

(6) The President’s budget framework would transfer to the

Federal Hospital Insurance Trust Fund more than

$900,000,000,000 over 15 years in new IOUs that must be redeemed later by raising taxes on American workers, cutting

benefits, or borrowing more from the public, and these new

IOUs would increase the gross debt of the Federal Government

by the amounts transferred.

(7) The Congressional Budget Office has stated that the

transfers described in paragraph (6), which are strictly

intragovernmental, have no effect on the unified budget surpluses or the on-budget surpluses and therefore have no effect

on the debt held by the public.

(8) The President’s budget framework does not provide access to, or financing for, prescription drugs.

(9) The Comptroller General of the United States has stated

that the President’s medicare proposal does not constitute reform of the program and ‘‘is likely to create a public

misperception that something meaningful is being done to reform the medicare program’’.

(10) The Balanced Budget Act of 1997 enacted changes to

the medicare program which strengthen and extend the solvency

of that program.

(11) The Congressional Budget Office has stated that without the changes made to the medicare program by the Balanced

Budget Act of 1997, the depletion of the Federal Hospital Insurance Trust Fund would now be imminent.

(12) The President’s budget proposes to cut medicare program spending by $19,400,000,000 over 10 years, primarily

through reductions in payments to providers under that program.

(13) The recommendations by Senator John Breaux and

Representative William Thomas received the bipartisan support

of a majority of members on the National Bipartisan Commission on the Future of Medicare.

(14) The Breaux-Thomas recommendations provide for new

prescription drug coverage for the neediest beneficiaries within

a plan that substantially improves the solvency of the medicare

program without transferring new IOUs to the Federal Hospital

Insurance Trust Fund that must be redeemed later by raising

taxes, cutting benefits, or borrowing more from the public.

(b) SENSE OF THE SENATE.—It is the sense of the Senate that

the provisions contained in this budget resolution assume the following:

(1) This resolution does not adopt the President’s proposals

to reduce medicare program spending by $19,400,000,000 over

10 years, nor does this resolution adopt the President’s proposal
30

to spend $10,000,000,000 of medicare program funds on unrelated programs.

(2) Congress will not transfer to the Federal Hospital Insurance Trust Fund new IOUs that must be redeemed later by

raising taxes on American workers, cutting benefits, or borrowing more from the public.

(3) Congress should work in a bipartisan fashion to extend

the solvency of the medicare program and to ensure that benefits under that program will be available to beneficiaries in the

future.

(4) The American public will be well and fairly served in

this undertaking if the medicare program reform proposals are

considered within a framework that is based on the following

5 key principles offered in testimony to the Senate Committee on

Finance by the Comptroller General of the United States:

(A) Affordability.

(B) Equity.

(C) Adequacy.

(D) Feasibility.

(E) Public acceptance.

(5) The recommendations by Senator Breaux and Congressman Thomas provide for new prescription drug coverage for the

neediest beneficiaries within a plan that substantially improves

the solvency of the medicare program without transferring to

the Federal Hospital Insurance Trust Fund new IOUs that

must be redeemed later by raising taxes, cutting benefits, or

borrowing more from the public.

(6) Congress should move expeditiously to consider the bipartisan recommendations of the Chairmen of the National Bipartisan Commission on the Future of Medicare.

(7) Congress should continue to work with the President as

he develops and presents his plan to fix the problems of the

medicare program.

SEC. 323. SENSE OF THE SENATE ON EDUCATION.

It is the sense of the Senate that—

(1) the levels in this resolution assume that—

(A) increased Federal funding for elementary and secondary education should be directed to States and local

school districts;

(B) the Individuals with Disabilities Education Act (20

U.S.C. 1400 et seq.) should be fully funded at the originally

promised level before any funds are appropriated for new

education programs;

(C) decisionmaking authority should be placed in the

hands of States, localities, and families to implement innovative solutions to local education challenges and to increase the performance of all students, unencumbered by

unnecessary Federal rules and regulations; and

(D) the Department of Education, the States, and local

education agencies should work together to ensure that not

less than 95 percent of all funds appropriated for the purpose of carrying out elementary and secondary education

programs administered by the Department of Education is

spent for our children in their classrooms; and
31

(2) within the discretionary allocation provided to the Committees on Appropriations of the House and Senate for function

500 that to the maximum extent practicable—

(A) the Federal Pell Grant maximum award should be

increased;

(B) funding for the Federal Supplemental Education

Opportunity Grants Program should be increased;

(C) funding for the Federal capital contributions under

the Federal Perkins Loan Program should be increased;

(D) funding for the Leveraging Educational Assistance

Partnership Program should be increased;

(E) funding for the Federal Work-Study Program

should be increased; and

(F) funding for the Federal TRIO Programs should be

increased.

SEC. 324. SENSE OF THE SENATE ON PROVIDING TAX RELIEF TO

AMERICANS BY RETURNING THE NON-SOCIAL SECURITY

SURPLUS TO TAXPAYERS.

It is the sense of the Senate that—

(1) the levels in this concurrent resolution assume that the

Senate not only puts a priority on protecting social security and

medicare and reducing the Federal debt, but also on tax reductions for working families in the form of family tax relief and

incentives to stimulate savings, investment, job creation and

economic growth;

(2) such tax relief could include an expansion of the 15-percent bracket, marginal rate reductions, a significant reduction

or elimination of the marriage penalty, retirement savings incentives, estate tax relief, an above-the-line income tax deduction for social security payroll taxes, tax incentives for education savings, parity between the self-employed and corporations with respect to the tax treatment of health insurance premiums, and capital gains tax fairness for family farmers;

(3) the Internal Revenue Code of 1986 needs comprehensive

reform, and Congress should move expeditiously to consider

comprehensive tax reform and simplification proposals; and

(4) Congress should reject the President’s proposed tax increase on investment income of associations as defined under

section 501(c)(6) of the Internal Revenue Code of 1986.

SEC. 325. SENSE OF THE SENATE ON ACCESS TO MEDICARE SERVICES.

It is the sense of the Senate that the levels in this resolution assume Congress should review payment levels in the medicare program to ensure beneficiaries have a range of choices available under

the Medicare+Choice program and have access to high quality

skilled nursing services, home health care services, and inpatient

and outpatient hospital services in rural areas.

SEC. 326. SENSE OF THE SENATE ON LAW ENFORCEMENT.

It is the sense of the Senate that the levels in this resolution assume that—

(1) significant resources should be provided for strong law

enforcement and aggressive crimefighting programs and that

funding in fiscal year 2000 for critical programs should be

equal to or greater than funding for these programs in 1999;
32

(2) critical programs include—

(A) State and local law enforcement assistance, especially with respect to the development and integration of

anticrime technology systems and upgrading forensic laboratories and the information and communications infrastructures upon which they rely;

(B) continuing efforts to reduce violent crime; and

(C) significant expansion of intensive Federal firearms

prosecutions projects such as the ongoing programs in

Richmond and Philadelphia into America’s most crime

plagued cities; and

(3) the existence of a strong Federal drug control policy is

essential in order to reduce the supplies of illegal drugs internationally and to reduce the number of children who are exposed to or addicted to illegal drugs and this can be furthered

by—

(A) investments in programs authorized in the Western

Hemisphere Drug Elimination Act and the proposed Drug

Free Century Act; and

(B) securing adequate resources and authority for the

United States Customs Service in any legislation reauthorizing the Service.

SEC. 327. SENSE OF THE SENATE ON IMPROVING SECURITY FOR

UNITED STATES DIPLOMATIC MISSIONS.

It is the sense of the Senate that the levels in this resolution assume that—

(1) there is an urgent and ongoing requirement to improve

security for United States diplomatic missions and personnel

abroad; and

(2) additional budgetary resources should be devoted to

programs within function 150 to enable successful international

leadership by the United States.

SEC. 328. SENSE OF THE SENATE ON INCREASED FUNDING FOR THE

NATIONAL INSTITUTES OF HEALTH.

It is the sense of the Senate that the levels in this resolution

and legislation enacted pursuant to this resolution assume that—

(1) there shall be a continuation of the pattern of budgetary

increases for biomedical research; and

(2) additional resources should be targeted towards autism

research.

SEC. 329. SENSE OF THE SENATE ON FUNDING FOR KYOTO PROTOCOL

IMPLEMENTATION PRIOR TO SENATE RATIFICATION.

It is the sense of Senate that the levels in this resolution assume

that funds should not be provided to put into effect the Kyoto Protocol prior to its Senate ratification in compliance with the requirements of the Byrd-Hagel Resolution and consistent with previous

Administration assurances to Congress.

SEC. 330. SENSE OF THE SENATE ON TEA–21 FUNDING AND THE

STATES.

It is the sense of the Senate that the levels in this resolution

and any legislation enacted pursuant to this resolution assume that

the President’s fiscal year 2000 budget proposal to change the manner in which any excess Federal gasoline tax revenues are distrib-
33

uted to the States will not be implemented, but rather any of these

funds will be distributed to the States pursuant to section 1105 of

TEA–21.

SEC. 331. SENSE OF THE SENATE THAT THE ONE HUNDRED SIXTH

CONGRESS, FIRST SESSION SHOULD REAUTHORIZE

FUNDS FOR THE FARMLAND PROTECTION PROGRAM.

It is the sense of the Senate that the functional totals contained

in this resolution assume that the One Hundred Sixth Congress,

First Session will reauthorize funds for the Farmland Protection

Program.

SEC. 332. SENSE OF THE SENATE ON THE IMPORTANCE OF SOCIAL SECURITY FOR INDIVIDUALS WHO BECOME DISABLED.

It is the sense of the Senate that levels in the resolution assume

that—

(1) social security plays a vital role in providing adequate

income for individuals who become disabled; and

(2) Congress and the President should take this fact into

account when considering proposals to reform the social security program.

SEC. 333. SENSE OF THE SENATE ON REPORTING OF ON-BUDGET

TRUST FUND LEVELS.

It is the sense of the Senate that the levels in this resolution assume, effective for fiscal year 2001, the President’s budget and the

budget report of CBO required under section 202(e) of the Congressional Budget Act of 1974 should include an itemization of the onbudget trust funds for the budget year, including receipts, outlays,

and balances.

SEC. 334. SENSE OF THE SENATE REGARDING SOUTH KOREA’S INTERNATIONAL TRADE PRACTICES ON PORK AND BEEF.

It is the sense of the Senate that the Senate—

(1) believes strongly that while a stable global marketplace

is in the best interest of America’s farmers and ranchers, the

United States should seek a mutually beneficial relationship

without hindering the competitiveness of American agriculture;

(2) calls on South Korea to abide by its trade commitments;

(3) calls on the Secretary of the Treasury to instruct the

United States Executive Director of the International Monetary

Fund to promote vigorously policies that encourage the opening

of markets for beef and pork products by requiring South Korea

to abide by its existing international trade commitments and to

reduce trade barriers, tariffs, and export subsidies;

(4) calls on the President and the Secretaries of Treasury

and Agriculture to monitor and report to Congress that resources will not be used to stabilize the South Korean market

at the expense of United States agricultural goods or services;

and

(5) requests the United States Trade Representative and the

United States Department of Agriculture to pursue the settlement of disputes with the Government of South Korea on its

failure to abide by its international trade commitments on beef

market access, to consider whether Korea’s reported plans for

subsidizing its pork industry would violate any of its international trade commitments, and to determine what impact Ko-
34

rea’s subsidy plans would have on United States agricultural

interests, especially in Japan.

SEC. 335. SENSE OF THE SENATE ON FUNDING FOR NATURAL DISASTERS.

It is the sense of the Senate that the levels in this resolution assume that, given that emergency spending for natural disasters continues to have an unpredictable yet substantial impact on the Federal budget and that consequently budgeting for disasters remains

difficult, the Administration and Congress should review procedures

for funding emergencies, including natural disasters, in any budget

process reform legislation that comes before the Congress.

And the Senate agree to the same.

From the Committee on the Budget:

JOHN R. KASICH,

SAXBY CHAMBLISS,

CHRISTOPHER SHAYS,

Managers on the Part of the House.

PETE V. DOMENICI,

CHUCK GRASSLEY,

DON NICKLES,

PHIL GRAMM,

SLADE GORTON,

Managers on the Part of the Senate.
(35)

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF

CONFERENCE

The managers on the part of the Senate and the House at the

conference on disagreeing votes of the two Houses on the amendment of the Senate to the concurrent resolution (House Concurrent

Resolution 68), setting forth the congressional budget for the

United States for fiscal years 2000, 2001, 2002, 2003, 2004, 2005,

2006, 2007, 2008 and 2009, submit the following joint statement to

the House and the Senate in explanation of the effect of the action

agreed upon by the managers and recommend in the accompanying

conference report:

The Senate amendment struck all out of the House resolution

after the resolving clause and inserted a substitute text.

The House recedes from its disagreement to the amendment of

the Senate with an amendment which is a substitute for the House

resolution and the Senate amendment.

DISPLAYS AND AMOUNTS

The contents of concurrent budget resolutions are set forth in

section 301(a) of the Congressional Budget Act of 1974.

House Resolution.—The House budget resolution includes all of

the items required as part of a concurrent budget resolution under

section 301(a) of the Congressional Budget Act other than the

spending and revenue levels for Social Security (which is used to

enforce a point of order applicable only in the Senate).

Senate Amendment.—The Senate amendment includes all of

the items required under section 301(a) of the Congressional Budget Act. As permitted under section 301(b) of the Congressional

Budget Act, Section 102 of the Senate amendment includes advisory levels on debt held by the public.

Conference Agreement.—The Conference Agreement includes

all of the items required by section 301(a) of the Congressional

Budget Act.

AGGREGATES AND FUNCTION LEVELS
36
37
38
39
40
41
42
43
44
45
46
47
48

ECONOMIC ASSUMPTIONS

Section 301(g)(2) of the Congressional Budget Act requires that

the joint explanatory statement accompanying a conference report

on a budget resolution set forth the common economic assumptions

upon which the joint statement and conference report are based.

The conference agreement is built upon the economic forecasts developed by the Congressional Budget Office and presented in CBO’s

‘‘The Economic and Budget Outlook: Fiscal Years 2000–2009’’ (January 1999). A modification was made to near-term real GDP

growth, however, to reflect recent economic strength.

House Resolution.—The House modified CBO’s economic assumptions to reflect the near-term strength of economy which became evident after CBO completed its winter forecast. The assumption for 1999 real GDP growth was increased from 2.3 percent to

2.4 percent, while the assumption for 2000 real GDP growth was

boosted from 1.7 percent to 2.0 percent. In both cases, the modified

GDP growth rate assumptions are well below Blue Chip’s current

forecasts. These changes boosted revenues slightly relative to the

CBO baseline in 1999, 2000 and 2001.

Senate Amendment.—CBO’s economic assumptions were used.

Conference Agreement.—House economic assumptions were

used, with minor technical adjustments.

ECONOMIC ASSUMPTIONS

[By calendar years]

1999 2000 2001 2002 2003 2004

Percent change, year over year:

Real GDP ....................................................................................................... 2.4 2.0 2.2 2.4 2.4 2.4

Consumer Price Index ................................................................................... 2.5 2.6 2.6 2.6 2.6 2.6

GDP Price Index ............................................................................................ 1.7 2.0 2.1 2.1 2.1 2.1

Percent, annual:

Unemployment rate ....................................................................................... 4.6 5.1 5.4 5.6 5.7 5.7

Three-month Treasury bill rate ..................................................................... 4.5 4.5 4.5 4.5 4.5 4.5

Ten-Year Treasury bond rate ........................................................................ 5.1 5.3 5.4 5.4 5.4 5.4

FUNCTIONS AND REVENUES

FUNCTION 050, NATIONAL DEFENSE

Major Programs in Function.—Function 050. National Defense, totals $270.7 billion in budget authority [BA] and $268.7 billion in

outlays for 1999, excluding one time emergencies enacted in the

105th Congress. This budget function includes funding for the Department of Defense (95 percent of function total), defense activities of the Department of Energy (5 percent), and small amounts

expended by the Selective Service, the General Services Administration, the Departments of Transportation and Justice, and other

federal agencies.

House Resolution.—The House resolution sets forth $288.8 billion in BA and $276.6 billion in outlays in fiscal year 2000;

$1,546.1 billion in BA and $1,471.3 billion in outlays over 5 fiscal

years; and $3,200.5 billion in BA and $3,051.9 billion in outlays

over 10 fiscal years.

Senate Amendment.—The Senate amendment sets forth $288.8

billion in BA and $274.6 billion in outlays in fiscal year 2000;
49

$1,546.0 billion in BA and $1,469.3 billion in outlays over 5 fiscal

years; and $3,200.5 billion in BA and $3,050.0 billion in outlays

over 10 fiscal years.

Conference Agreement.—The Conference Agreement sets forth

$288.8 billion in BA and $276.6 billion in outlays in fiscal year

2000; $1,546.0 billion in BA and $1,471.3 billion in outlays over 5

fiscal years; and $3,200.5 billion in BA and $3,051.9 billion in outlays over 10 fiscal years.

FUNCTION 150: INTERNATIONAL AFFAIRS

Major Programs in Function.—Function 150, International Affairs, totals about $13.7 billion in BA and $14.4 billion in outlays

for 1999, excluding emergencies and other one-time spending increases including contributions to the International Monetary Fund

and arrears to international organizations. This function includes

funding for operation of the foreign affairs establishment including

embassies and other diplomatic missions abroad, foreign aid loan

and technical assistance activities in developing countries, security

assistance to foreign governments, activities of the Foreign Military

Sales Trust Fund, U.S. contributions to international financial institutions, Export-Import Bank and other trade promotion activities, and refugee assistance.

House Resolution.—The House resolution sets forth $11.2 billion in BA and $14.5 billion in outlays in fiscal year 2000; $56.7

billion in BA and $70.8 billion in outlays over 5 fiscal years; and

$126.1 billion in BA and $133.0 billion in outlays over 10 fiscal

years.

Senate Amendment.—The Senate amendment sets forth $12.5

billion in BA and $14.9 billion in outlays in fiscal year 2000; $65.3

billion in BA and $73.5 billion in outlays over 5 fiscal years; and

$139.7 billion in BA and $140.4 billion in outlays over 10 fiscal

years.

Conference Agreement.—The Conference Agreement sets forth

$12.5 billion in BA and $14.9 billion in outlays in fiscal year 2000;

$61.7 billion in BA and $72.3 billion in outlays over 5 fiscal years;

and $133.6 billion in BA and $136.9 billion in outlays over 10 fiscal

years.

FUNCTION 250: GENERAL SCIENCE, SPACE, AND TECHNOLOGY

Major Programs in Function.—Function 250, General Science,

Space & Technology, totals $18.8 billion in BA and $18.2 billion in

outlays for 1999. This function includes the National Aeronautics

and Space Administration (NASA) civilian space program and basic

research programs of the National Science Foundation (NSF) and

the Department of Energy (DOE).

House Resolution.—The House resolution sets forth $18.0 billion in BA and $18.2 billion in outlays in fiscal year 2000; $89.6

billion in BA and $89.6 billion in outlays over 5 fiscal years; and

$179.2 billion in BA and $178.4 billion in outlays over 10 fiscal

years.

Senate Amendment.—The Senate amendment sets forth $18.0

billion in BA and $18.2 billion in outlays in fiscal year 2000; $89.6

billion in BA and $89.6 billion in outlays over 5 fiscal years; and
50

$179.2 billion in BA and $178.4 billion in outlays over 10 fiscal

years.

Conference Amendment.—The Conference Agreement sets forth

$18.0 billion in BA and $18.2 billion in outlays in fiscal year 2000;

$89.6 billion in BA and $89.6 billion in outlays over 5 fiscal years;

and $179.2 billion in BA and $178.4 billion in outlays over 10 fiscal

years.

FUNCTION 270: ENERGY

Major Programs in Function.—Function 270, Energy, totals

about $1.1 billion in BA and $677 million in outlays for 1999. This

function includes civilian activities of the Department of Energy,

the Rural Utilities Service, the power programs of the Tennessee

Valley Authority (TVA), and the Nuclear Regulatory Commission

(NRC). Mandatory spending in this function contains large levels

of offsetting receipts, resulting in net mandatory spending of ¥$1.8

billion in BA and ¥$2.6 billion in outlays for 1999. Congress provided $3.0 billion in discretionary BA for 1999.

House Resolution.—The House resolution sets forth $0.0 billion

in BA and ¥$0.7 billion in outlays in fiscal year 2000; ¥$2.0 billion in BA and ¥$7.5 billion in outlays over 5 fiscal years; and

¥$3.6 billion in BA and $14.1 billion in outlays over 10 fiscal

years.

Senate Amendment.—The Senate resolution sets forth $0.0 billion in BA and ¥$0.7 billion in outlays in fiscal year 2000; ¥$2.0

billion in BA and ¥$7.5 billion in outlays over 5 fiscal years; and

¥$3.6 billion in BA and $14.1 billion in outlays over 10 fiscal

years.

Conference Agreement.—The Conference Agreement sets forth

$49 million in BA and ¥$0.7 billion in outlays in fiscal year 2000;

¥$2.0 billion in BA and ¥$7.5 billion in outlays over 5 fiscal

years; and ¥$3.6 billion in BA and $14.1 billion in outlays over 10

fiscal years.

FUNCTION 300: NATURAL RESOURCES AND ENVIRONMENT

Major Programs in Function.—Function 300, Natural Resources and Environment, totals about $23.9 billion in BA and

$23.3 billion in outlays for 1999, excluding emergency and other

one-time spending items. This function includes funding for water

resources, conservation and land management, recreation resources, and pollution control and abatement. Agencies with major

program activities within the function include the Environmental

Protection Agency (EPA), the Army Corps of Engineers, the National Oceanic and Atmospheric Administration (NOAA), the Forest

Service (within the Department of Agriculture), and the Department of the Interior, including the National Park Service, the Fish

and Wildlife Service, the U.S. Geological Survey, the Bureau of

Land Management and the Bureau of Reclamation, among others.

House Resolution.—The House resolution sets forth $22.8 billion in BA and $22.6 billion in outlays in fiscal year 2000; $113.7

billion in BA and $112.2 billion in outlays over 5 fiscal years; and

$232.2 billion in BA and $229.6 billion in outlays over 10 fiscal

years.
51

Senate Amendment.—The Senate amendment sets forth $21.7

billion in BA and $22.4 billion in outlays in fiscal year 2000; $108.6

billion in BA and $110.3 billion in outlays over 5 fiscal years; and

$222.1 billion in BA and $222.7 billion in outlays over 10 fiscal

years.

Conference Agreement.—The Conference Agreement sets forth

$22.8 billion in BA and $22.6 billion in outlays in fiscal year 2000;

$111.7 billion in BA and $111.3 billion in outlays over 5 fiscal

years; and $227.7 billion in BA and $226.2 billion in outlays over

10 fiscal years.

FUNCTION 350: AGRICULTURE

Major Programs in Function.—Function 350, Agriculture, totals about $16.8 billion in BA and $14.9 billion in outlays for 1999,

excluding one-time emergency spending provided for natural disasters and export market losses. This function includes funding for

federal programs intended to promote the economic stability of agriculture through direct assistance and loans to food and fiber producers, provide regulatory, inspection and reporting services for agricultural markets, and promote research and education in agriculture and nutrition.

House Resolution.—The House resolution sets forth $14.3 billion in BA and $13.2 billion in outlays in fiscal year 2000; $63.7

billion in BA and $55.3 billion in outlays over 5 fiscal years; and

$117.2 billion in BA and $101.7 billion in outlays over 10 fiscal

years.

Senate Amendment.—The Senate amendment sets forth $14.8

billion in BA and $13.7 billion in outlays in fiscal year 2000; $63.7

billion in BA and $55.3 billion in outlays over 5 fiscal years: and

$117.2 billion in BA and $101.7 billion in outlays over 10 fiscal

years.

Conference Agreement.—The Conference Agreement sets forth

$14.3 billion in BA and $13.2 billion in outlays in fiscal year 2000;

$63.7 billion in BA and $55.3 billion in outlays over 5 fiscal years;

and $117.2 billion in BA and $101.7 billion in outlays over 10 fiscal

years.

FUNCTION 370: COMMERCE AND HOUSING CREDIT

Major Programs in Function.—Function 370, Commerce and

Housing Credit, totals about $1.9 billion in BA and $0.8 billion in

outlays for 1999. This function includes funding for discretionary

housing programs, such as subsidies for single and multifamily

housing in rural areas and mortgage insurance provided by the

Federal Housing Administration; net spending by the Postal Service; discretionary funding for commerce programs, such as international trade and exports, science and technology, the census, and

small business; and mandatory spending for deposit insurance activities related to banks, savings and loans, and credit unions.

House Resolution.—For on-budget amounts, the House resolution sets forth $9.9 billion in BA and $4.5 billion in outlays in fiscal

year 2000; $63.3 billion in BA and $41.7 billion in outlays over 5

fiscal years; and $127.4 billion in BA and $86.4 billion in outlays

over 10 fiscal years.
52

Senate Amendment.—For on-budget amounts, the Senate amendment sets forth $9.7 billion in BA and $4.3 billion in outlays

in fiscal year 2000; $63.1 billion in BA and $41.5 billion in outlays

over 5 fiscal years; and $127.1 billion in BA and $86.2 billion in

outlays over 10 fiscal years. For off-budget amounts, the Senate

amendment sets forth ¥$0.2 billion in BA and outlays in 2000; ¥$1.2 billion in BA and outlays over 5 fiscal years; and ¥$1.2 billion in BA and outlays over 10 fiscal years.

Conference Agreement.— For on-budget amounts, the Con- ference Agreement sets forth $9.7 billion in BA and $4.3 billion in

outlays in fiscal year 2000; $63.1 billion in BA and $41.5 billion in

outlays over 5 fiscal years; and $127.1 billion in BA and $86.2 billion in outlays over 10 fiscal years.

FUNCTION 400: TRANSPORTATION

Major Programs in Function.—Function 400, Transportation, totals $50.8 billion in BA and $43.8 billion in outlays for 1999, excluding one-time emergency spending provided for the Federal

Aviation Administration and the Coast Guard. This function includes ground transportation programs, such as the federal-aid

highway program, mass transit, and the National Rail Passenger

Corporation (Amtrak); air transportation through the Federal Aviation Administration (FAA) airport improvement program, facilities

and equipment program, and operation of the air traffic control system; water transportation through the Coast Guard and Maritime

Administration; the Surface Transportation Board; the National

Transportation Safety Board; and related transportation safety and

support activities within the Department of Transportation.

House Resolution.—The House resolution sets forth $51.8 billion in BA and $45.8 billion in outlays in fiscal year 2000; $258.1

billion in BA and $233.8 billion in outlays over 5 fiscal years; and

$520.0 billion in BA and $464.1 billion in outlays over 10 fiscal

years.

Senate Amendment.—The Senate amendment sets forth $51.3

billion in BA and $45.3 billion in outlays in fiscal year 2000; $259.1

billion in BA and $233.7 billion in outlays over 5 fiscal years; and

$522.4 billion in BA and $463.8 billion in outlays over 10 fiscal

years.

Conference Agreement.—The Conference Agreement sets forth $51.8 billion in BA and $45.8 billion in outlays in fiscal year 2000;

$258.2 billion in BA and $233.8 billion in outlays over 5 fiscal

years; and $520.1 billion in BA and $464.1 billion in outlays over

10 fiscal years.

FUNCTION 450: COMMUNITY AND REGIONAL DEVELOPMENT

Major Programs in Function.—Function 450, Community and Regional Development, totals about $8.8 billion in BA and $11.7

billion in outlays for 1999, excluding emergency funding and other

one-time appropriations. This function includes funding for community and regional development and disaster relief. The function includes the Appalachian Regional Commission (ARC), non-power

programs of the Tennessee Valley Authority (TVA), the Federal

Emergency Management Agency (FEMA), the Economic Development Administration (EDA) within the Commerce Department, and
53

portions of the Department of Housing and Urban Development,

the Bureau of Indian Affairs, and the Department of Agriculture.

House Resolution.—The House resolution sets forth $7.4 billion

in BA and $10.7 billion in outlays in fiscal year 2000; $29.3 billion

in BA and $38.4 billion in outlays over 5 fiscal years; and $57.3 billion in BA and $60.7 billion in outlays over 10 fiscal years.

Senate Amendment.—The Senate amendment sets forth $5.3

billion in BA and $10.3 billion in outlays in fiscal year 2000; $14.0

billion in BA and $27.5 billion in outlays over 5 fiscal years; and

$24.1 billion in BA and $31.9 billion in outlays over 10 fiscal years.

Conference Agreement.—The Conference Agreement sets forth $6.4 billion in BA and $10.5 billion in outlays in fiscal year 2000;

$21.7 billion in BA and $33.0 billion in outlays over 5 fiscal years;

and $40.7 billion in BA and $46.3 billion in outlays over 10 fiscal

years.

FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL

SERVICES

Major Programs in Function.—Function 500, Education, Train- ing, Employment and Social Services totals about $61 billion in BA

and $59.8 billion in outlays for 1999, excluding one-time emergency

spending items. This function includes funding for elementary and

secondary, vocational, and higher education; job training; children

and family services programs; adoption and foster care assistance;

statistical analysis and research related to these areas; and funding for the arts and humanities.

House Resolution.—The House resolution sets forth $65.3 billion in BA and $63.6 billion in outlays in fiscal year 2000; $335.0

billion in BA and $325.3 billion in outlays over 5 fiscal years; and

$696.3 billion in BA and $681.3 billion in outlays over 10 fiscal

years.

Senate Amendment.—The Senate amendments sets forth $67.4

billion in BA and $64.0 billion in outlays in fiscal year 2000; $351.2

billion in BA and $336.4 billion in outlays over 5 fiscal years; and

$746.2 billion in BA and $725.7 billion in outlays over 10 fiscal

years.

Conference Agreement.—The Conference Agreement sets forth $66.3 billion in BA and $63.8 billion in outlays in fiscal year 2000;

$343.1 billion in BA and $330.8 billion in outlays over 5 fiscal

years; and $721.3 billion in BA and $703.5 billion in outlays over

10 fiscal years. The Conference agreement provides that an additional $0.5 billion is available for funding the Individuals with Disabilities Education Act for fiscal year 2000.

FUNCTION 550: HEALTH

Major Programs in Function.—Function 550, Health, totals

about $147.3 billion in BA and $140.6 billion in outlays for 1999,

excluding one-time emergency spending. This function covers all

health spending except that for Medicare, military health, and veterans’ health. The major programs include Medicaid, the State

Children’s Health Insurance Program, health benefits for federal

workers and retirees, the National Institutes of Health, the Food

and Drug Administration, the Health Resources and Services Administration, Indian Health Services, the Centers for Disease Con-
54

trol and Prevention, and the Substance Abuse and Mental Health

Services Administration.

House Resolution.—The House resolution sets forth $156.2 billion in BA and $153.0 billion in outlays in fiscal year 2000; $876.2

billion in BA and $873.0 billion in outlays over 5 fiscal years; and

$2,114.4 billion in BA and $2,108.7 billion in outlays over 10 fiscal

years.

Senate Amendment.—The Senate amendment sets forth $156.2

billion in BA and $153.0 billion in outlays in fiscal year 2000;

$876.2 billion in BA and $872.9 billion in outlays over 5 fiscal

years; and $2,114.4 billion in BA and $2,108.7 billion in outlays

over 10 fiscal years.

Conference Agreement.—The Conference Agreement sets forth

$156.2 billion in BA and $153.0 billion in outlays in fiscal year

2000; $876.2 billion in BA and $872.9 billion in outlays over 5 fiscal

years; and $2,114.4 billion in BA and $2,108.7 billion in outlays

over 10 fiscal years.

FUNCTION 570: MEDICARE

Major Programs in Function.—Function 570, Medicare, totals

about $195.2 billion in BA and $194.6 billion in outlays for 1999.

House Resolution.—The House resolution sets forth $208.7 billion in BA and $208.7 billion in outlays in fiscal year 2000;

$1,180.7 billion in BA and $1,180.8 billion in outlays over 5 fiscal

years; and $2,880.3 billion in BA and $2,880.1 billion in outlays

over 10 fiscal years.

Senate Amendment.—The Senate amendment sets forth $208.7

billion in BA and $208.7 billion in outlays in fiscal year 2000;

$1,180.7 billion in BA and $1,180.8 billion in outlays over 5 fiscal

years; and $2,880.3 billion in BA and $2,880.1 billion in outlays

over 10 fiscal years.

Conference Agreement.—The Conference Agreement sets forth

$208.7 billion in BA and $208.7 billion in outlays in fiscal year

2000; $1,180.7 billion in BA and $1,180.8 billion in outlays over 5

fiscal years; and $2,880.3 billion in BA and $2,880.1 billion in outlays over 10 fiscal years.

FUNCTION 600: INCOME SECURITY

Major Programs in Function.—Function 600, Income Security,

totals $234.6 billion in BA and $237.8 billion in outlays for 1999,

excluding spending which requires a cap adjustment or is for an

emergency. This function contains: 1) major cash and in-kind

means-tested entitlements; 2) general retirement, disability, and

pension programs excluding Social Security and Veterans’ compensation programs; 3) federal and military retirement programs;

4) unemployment compensation; 5) low-income housing programs;

and 6) other low-income support programs. Function 600 is the

third largest functional category after Social Security and defense.

Mandatory programs account for 86 percent of total spending in

this function.

House Resolution.—The House resolution sets forth $244.4 billion in BA and $248.1 billion in outlays in fiscal year 2000;

$1,320.7 billion in BA and $1,335.3 billion in outlays over 5 fiscal
55

years; and $2,892.8 billion in BA and $2,911.8 billion in outlays

over 10 fiscal years.

Senate Amendment.—The Senate amendment sets forth $244.4

billion in BA and $248.1 billion in outlays in fiscal year 2000;

$1,324.8 billion in BA and $1,336.8 billion in outlays over 5 fiscal

years; and $2,902.4 billion in BA and $2,918.4 billion in outlays

over 10 fiscal years.

Conference Agreement.—The Conference Agreement sets forth $244.4 billion in BA and $248.1 billion in outlays in fiscal year

2000; $1,320.3 billion in BA and $1,333.4 billion in outlays over 5

fiscal years; and $2,891.8 billion in BA and $2,909.2 billion in outlays over 10 fiscal years. The Conference Agreement assumes $3

billion in new mandatory spending for families with children to

cover child care expenditures.

FUNCTION 650: SOCIAL SECURITY

Major Programs in Function.—Function 650, Social Security, totals about $14.5 billion in BA and $14.7 billion in outlays for

1999 for on-budget activities. This function includes Social Security

benefits and administrative expenses.

House Resolution.—For on-budget amounts, the House resolu- tion sets forth $14.2 billion in BA and $14.3 billion in outlays in

fiscal year 2000; $77.0 billion in BA and $77.0 billion in outlays

over 5 fiscal years; and $177.0 billion in BA and $177.0 billion in

outlays over 10 fiscal years.

Senate Amendment.—The Senate amendment sets forth $14.2

billion in BA and $14.3 billion in outlays in fiscal year 2000; $77.0

billion in BA and $77.0 billion in outlays over 5 fiscal years; and

$177.0 billion in BA and $176.9 billion in outlays over 10 fiscal

years. For off-budget amounts, the Senate amendment sets forth

$393.0 billion in BA and outlays in 2000; $2,158.9 billion in BA and

outlays over 5 fiscal years; and $4,915.7 billion in BA and outlays

over 10 fiscal years.

Conference Agreement.—The Conference Agreement sets forth $14.2 billion in BA and $14.3 billion in outlays in fiscal year 2000;

$77.0 billion in BA and $77.0 billion in outlays over 5 fiscal years;

and $177.0 billion in BA and $176.9 billion in outlays over 10 fiscal

years.

FUNCTION 700: VETERANS’ BENEFITS AND SERVICES

Major Programs in Function.—Function 700, Veterans Bene- fits, totals $43.0 billion in BA and $42.9 billion in outlays for 1999.

This budget function includes income security needs of disabled

veterans, indigent veterans, and survivors of deceased veterans

through compensation benefits, pensions, and life insurance programs. Major education, training, and rehabilitation and readjustment programs include the Montgomery GI Bill, the Veterans Educational Assistance Program, and the Vocational Rehabilitation and

Counseling program. Veterans can also receive guarantees on home

loans. Roughly half of all spending in this function is for the Veterans Health Administration, which is comprised of over 700 hospitals, nursing homes, domiciliaries, and outpatient clinics.

House Resolution.—The House resolution sets forth $44.7 billion in BA and $45.1 billion in outlays in fiscal year 2000; $225.9
56

billion in BA and $228.3 billion in outlays over 5 fiscal years; and

$467.3 billion in BA and $470.3 billion in outlays over 10 fiscal

years.

Senate Amendment.—The Senate amendment sets forth $46.7

billion in BA and $47.1 billion in outlays in fiscal year 2000; $227.1

billion in BA and $229.5 billion in outlays over 5 fiscal years; and

$466.2 billion in BA and $469.2 billion in outlays over 10 fiscal

years.

Conference Agreement.—The Conference Agreement sets forth $45.4 billion in BA and $45.6 billion in outlays in fiscal year 2000;

$226.6 billion in BA and $228.8 billion in outlays over 5 fiscal

years; and $468.0 billion in BA and $470.8 billion in outlays over

10 fiscal years.

FUNCTION 750: ADMINISTRATION OF JUSTICE

Major Programs in Function.—Function 750, Administration of Justice, totals about $26.3 billion in BA and $24.8 billion in outlays

for 1999. This function includes funding for federal law enforcement activities, including criminal investigations by the Federal

Bureau of Investigation (FBI) and the Drug Enforcement Administration (DEA), border enforcement and the control of illegal immigration by the Customs Service and Immigration and Naturalization Service (INS), as well as funding for prison construction, drug

treatment, crime prevention programs and the federal Judiciary.

House Resolution.—The House resolution sets forth $23.4 billion in BA and $25.3 billion in outlays in fiscal year 2000; $123.5

billion in BA and $125.9 billion in outlays over 5 fiscal years; and

$255.5 billion in BA and $257.4 billion in outlays over 10 fiscal

years.

Senate Amendment.—The Senate amendment sets forth $23.4

billion in BA and $25.3 billion in outlays in fiscal year 2000; $121.8

billion in BA and $124.2 billion in outlays over 5 fiscal years; and

$242.3 billion in BA and $244.1 billion in outlays over 10 years.

Conference Agreement.—The Conference Agreement sets forth $23.4 billion in BA and $25.3 billion in outlays in fiscal year 2000;

$123.5 billion in BA and $125.9 billion in outlays over 5 fiscal

years; and $255.5 billion in BA and $257.4 billion in outlays over

10 fiscal years.

FUNCTION 800: GENERAL GOVERNMENT

Major Programs in Function.—Function 800, General Govern- ment, totals $15.2 billion in BA and $14.8 billion in outlays for

1999, excluding spending which requires a cap adjustment or is for

an emergency. This function consists of the activities of the Legislative Branch, the Executive Office of the President, U.S. Treasury

fiscal operations (including the Internal Revenue Service), personnel and property management, and general purpose fiscal assistance to states, localities, and U.S. territories. Discretionary spending represents 93 percent of total spending in this function. The Internal Revenue Service accounts for 62 percent of the discretionary

total.

House Resolution.—The House resolution sets forth $12.3 billion in BA and $13.5 billion in outlays in fiscal year 2000; $60.5

billion in BA and $62.7 billion in outlays over 5 fiscal years; and
57

$121.2 billion in BA and $122.3 billion in outlays over 10 fiscal

years.

Senate Amendment.—The Senate amendment sets forth $12.3

billion in BA and $13.5 billion in outlays in fiscal year 2000; $60.5

billion in outlays over 5 fiscal years; and $121.2 billion in BA and

$122.3 billion in outlays over 10 fiscal years.

Conference Agreement.—The Conference Agreement sets forth

$12.3 billion in BA and $13.5 billion in outlays in fiscal year 2000;

$60.5 billion in BA and $62.7 billion in outlays over 5 fiscal years;

and $121.2 billion in BA and $122.3 billion in outlays over 10 fiscal

years.

FUNCTION 900: NET INTEREST

Major Programs in Function.—Function 900, Net Interest, totals $229.4 billion in BA and outlays in 1999. Net interest is a

mandatory payment; there are no discretionary programs in Function 900. Net interest includes interest on the public debt after deducting the interest income received by the federal government.

House Resolution.—For on-budget amounts, the House resolution sets forth $275.5 in BA and outlays in fiscal year 2000;

$1,342.4 billion in BA and outlays over 5 fiscal years; and $2,626.5

billion in BA and outlays over 10 fiscal years.

Senate Amendment.—For on-budget amounts, the Senate

amendment sets forth $275.7 billion in BA and outlays in fiscal

year 2000; $1,344.4 billion in BA and outlays over 5 fiscal years;

and $2,630.8 billion in BA and outlays over 10 fiscal years.

Conference Agreement.—For on-budget amounts, the Conference Agreement sets forth $275.5 billion in BA and outlays in

fiscal year 2000; $1,342.7 billion in BA and outlays over 5 fiscal

years; and $2,628.4 billion in BA and outlays over 10 fiscal years.

DEBT LEVELS

The following table compares the levels of debt held by the

public and debt subject to limit associated with the Conference

Agreement, the President’s Budget and the baseline.

Under the Conference Agreement, debt held by the public declines year by year, and by 2009 would be nearly $1.8 trillion below

its present level. Debt held by the public under the President’s

Budget would decline by about $1.3 trillion over the next ten years.

After ten years, debt held by the public would be $465 billion lower

under the Conference Agreement than under the President’s Budget.

The statutory debt limit, which now stands at $5.95 trillion,

would not have to be increased until the very end of 2004 under

the Conference Agreement. Under the President’s Budget, the statutory debt limit would have to be raised sometime in 2001.

Clause 3 of House rule XXIII requires that the joint explanatory statement of managers accompanying a budget resolution provide a statement of the effect of adoption of the concurrent resolution upon the statutory limit on the debt. This resolution will have

no direct effect upon the statutory limit on the debt because the

House resolution providng for the consideration of H. Con. Res. 68
58

suspended the automatic engrossment of an increase in the statutory limit upon the adoption of a conference report.
59

COMPARISON OF CONFERENCE AGREEMENT WITH PRESIDENT’S BUDGET AND BASELINE

[In billions of dollars]

Debt 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Conference agreement:

Held by Public ................................................................. 3,627.1 3,502.4 3,370.1 3,229.3 3,080.6 2,920.1 2,738.2 2,540.6 2,326.7 2,098.3 1,861.1Subject to limit ............................................................... 5,543.9 5,628.4 5,708.5 5,793.5 5,877.4 5,956.3 6,024.6 6,084.6 6,136.5 6,173.9 6,203.4

President’s Budget:

Held by Public ................................................................. 3,629.5 3,564.9 3,491.0 3,395.8 3,302.4 3,188.5 3,055.4 2,891.1 2,709.7 2,522.1 2,323.6Subject to limit ............................................................... 5,546.3 5,778.6 5,999.8 6,243.0 6,498.4 6,765.1 7,042.9 7,337.9 7,661.1 8.018.6 8,409.0

Baseline:

Held by Public ................................................................. 3,627.1 3,515.8 3,389.7 3,215.1 3,021.0 2,781.3 2,501.1 2,152.1 1,751.8 1,311.4 823.3Subject to limit ............................................................... 5,543.9 5,641.7 5,728.1 5,779.2 5,817.8 5,817.6 5,787.5 5,696.1 5,561.6 5,387.0 5,165.7

Conference agreement compared to:

President’s Budget:Held by Public ................................................................. ¥2.4 ¥62.5 ¥120.9 ¥166.5 ¥221.8 ¥268.4 ¥317.2 ¥350.5 ¥383.0 ¥423.8 ¥462.5

Subject to limit ............................................................... ¥2.4 ¥150.2 ¥291.3 ¥449.5 ¥621.0 ¥808.8 ¥1,018.3 ¥1,253.3 ¥1,524.6 ¥1,844.7 ¥2,205.6

Baseline:

Held by Public ................................................................. .................. ¥13.3 ¥19.6 14.3 59.6 138.8 237.1 388.5 574.9 786.9 1,037.8Subject to limit ............................................................... .................. ¥13.3 ¥19.6 14.3 59.6 138.8 237.1 388.5 574.9 786.9 1,037.8
60

FUNCTION 920: ALLOWANCES

Major Programs in Function.—Function 920, Allowances, usually displays the budgetary effects of proposals that cannot be easily distributed across other budget functions. In past years. Function 920 has included total savings or costs from proposals associated with emergency spending or proposals contingent on certain

events that have uncertain chances of occurring, such as the President’s proposal for increased discretionary spending from the Social

Security Surplus contingent on Social Security reform.

House Resolution.—The House resolution sets forth ¥$8.0 billion in BA and ¥$10.1 billion in outlays in fiscal year 2000;

¥$31.8 billion in BA and ¥$52.8 billion in outlays over 5 fiscal

years; and ¥$56.8 billion in BA and ¥$80.6 billion in outlays over

10 fiscal years.

Senate Amendment.—The Senate amendment sets forth

¥$10.0 billion in BA and ¥$10.1 billion in outlays in fiscal year

2000; ¥$33.8 billion in BA and ¥$52.8 billion in outlays over 5 fiscal years; and ¥$58.8 billion in BA and ¥$80.6 billion in outlays

over 10 fiscal years.

Conference Agreement.—The Conference Agreement sets forth

¥$9.8 billion in BA and ¥$10.8 billion in outlays in fiscal year

2000; ¥$33.6 billion in BA and ¥53.5 billion in outlays over 5 fiscal years; and ¥$58.6 billion in BA and ¥$81.3 billion in outlays

over 10 fiscal years.

FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS

Major Programs in Function.—Function 950, Undistributed

Offsetting Receipts, totals about $40.1 billion in receipts (BA and

outlays) for 1999. This function records offsetting receipts (receipts,

not federal revenues or taxes, that the budget shows as offsets to

spending programs) that are too large to record in other budget

functions. Such receipts are either intrabudgetary (a payment from

one federal agency to another, such as agency payments to the retirement trust funds) or proprietary (a payment from the public for

some type of business transaction with the government). The main

types of receipts recorded as undistributed in this function are: the

payments federal agencies make to retirement trust funds for their

employees, payments made by companies for the right to explore

and produce oil and gas on the Outer Continental Shelf, and payments by those who bid for the right to buy or use the public property or resources, such as the electromagnetic spectrum.

House Resolution.—For on-budget amounts, the House resolution sets forth ¥$34.3 billion in BA and outlays in fiscal year 2000;

¥$188.9 billion in BA and outlays over 5 fiscal years; and ¥$388.4

billion in BA and outlays over 10 fiscal years.

Senate Amendment.—For on-budget amounts, the Senate

amendment sets forth ¥$34.3 billion in BA and outlays in fiscal

year 2000; ¥$189.8 billion in BA and outlays over 5 fiscal years;

and ¥$391.2 billion in BA and outlays over 10 fiscal years. For offbudget amounts, the Senate amendment sets forth ¥$8.0 billion in

BA and outlays in 2000; ¥$45.8 billion in BA and outlays over 5

fiscal years; and ¥$110.2 billion in BA and outlays over 10 fiscal

years.
61

Conference Agreement.—The Conference Agreement sets forth

¥$34.3 billion in BA and outlays in fiscal year 2000; ¥$189.2 billion in BA and outlays over 5 fiscal years; and ¥$392.9 billion in

BA and ¥$392.8 billion in outlays over 10 fiscal years.

REVENUES

House Resolution.—For on-budget amounts, the House resolution sets forth $1,408.5 billion in revenues in fiscal year 2000;

$7,416.9 billion over 5 fiscal years; and $16,155.8 billion over 10

fiscal years.

Senate Amendment.— For on-budget amounts, the Senate

amendment sets forth $1,402.0 billion in revenues in fiscal year

2000; $7,408.3 billion over 5 fiscal years; and $16,147.7 billion over

10 fiscal years.

Conference Agreement.—For on-budget amounts, the Conference Agreement set forth $1,408.1 billion in revenues in fiscal

year 2000; $7,414.2 billion over 5 fiscal years; and $16,153.5 billion

over 10 fiscal years. The conference agreement assumes that the

tax relief provided by this resolution will include tax cuts to help

cover the costs of raising a child. Tax cuts for families with children—child care credits—will be no less than $3 billion.

RECONCILIATION

House Resolution.—Section 4 of the House resolution directs

the Committee on Ways and Means to report by September 30,

1999, a reconciliation bill that reduces revenues by $142.5 billion

for the total of fiscal year 2000 through 2005 and $768.5 billion for

fiscal years 2000 through 2009. The House resolution does not reconcile a reduction in the statutory limit on the debt.

Senate Amendment.—Section 104 of the Senate amendment directs the Senate Committee on Finance to report by June 18, 1999,

a reconciliation bill that reduced revenues by $138.485 billion for

the total of fiscal years 2000 through 2004 and $765.985 billion for

the total of the fiscal years 2000 through 2009. The Senate amendment also instructs the Finance Committee to report a reduction in

the statutory limit on the debt of $85 billion for fiscal year 2000

only. In anticipation that the budget resolution might be resolved

by the adoption of amendments between the Houses, section 105 of

the Senate amendment includes reconciliation instructions for the

House Committee on Ways and Means to report legislation by June

11, 1999 that reduces revenues and the statutory limit on the debt

by the same amounts set out in section 104.

Conference Agreement.—The Conference agreement directs the

Committees on Ways and Means and Finance to report by July 16,

1999 and July 23, 1999 respectively, a reconciliation bill that reduces revenues by $0 for fiscal year 2000, $142.3 billion for the

total of fiscal years 2000 through 2004 and $777.9 billion for the

total of fiscal years 2000 through 2009. The Conference agreement

does not include an instruction to reconcile a reduction in the statutory limit on the debt.
62

ALLOCATIONS

As required in section 302 of the Budget Act, the joint statement of the managers includes an allocation, based upon the conference report, of the levels of total budget authority, total budget

outlays among each of the appropriate House and Senate committees.

The allocation for each House consist of a set of two tables for

the House and the Senate. The first set of tables shows the allocation for the budget year, fiscal year 2000. The House allocates

funding for each fiscal year covered by the budget resolution. The

second set of tables shows the amount allocated for the totals of the

first five years and the ten years covered by the budget resolution.

The allocations are as follows:

ALLOCATIONS OF SPENDING AUTHORITY TO HOUSE COMMITTEES

Appropriations Committee

[In millions of dollars]

Fiscal year 2000 Budget authority Outlays

General Purpose 1 ..................................................................................................................................... 531,771 536,700

Violent Crime Reduction 1 ........................................................................................................................ 4,500 5,554

Highways 1 ................................................................................................................................................ 0 24,574

Mass Transit 1 .......................................................................................................................................... 0 4,117

Total Discretionary Action ........................................................................................................... 536,271 570,945

Current Law Mandatory ............................................................................................................................ 321,108 303,938

1 Shown for display purposes only.
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RULEMAKING AND BUDGETARY PROCEDURES

House Resolution.—Section 5(a) of the House resolution includes findings that Social Security is, by law, off-budget; that Social Security has been running surpluses; that these surpluses have

been used to balance the Federal budget; that this resolution, for

the first time, balances the budget without counting such surpluses, and that the only way to present the diversion of the surpluses for other purposes is to balance the budget exclusive of the

surpluses, and both the Congress and the Administration should

take the necessary steps to ensure that future budgets are balanced exclusive of the surpluses.

Section 5(b) of the House resolution prohibits the consideration

of any budget resolution that sets forth an on-budget deficit. The

intent of this provision is to prevent Congresses from considering

future budget resolutions that implicitly use the Social Security

surplus to finance other governmental operations. Section 5 is enforced by a point of order that, if sustained, precludes further consideration of the measure. In addition to any budget resolution reported by the Budget Committee, the point of order may be raised

against amendments to the budget resolution and accompanying

conference reports. Consistent with enforcement of key Budget Act

requirements in the House and Senate, section 5 may be waived by

a simple majority of those present in the House and three-fifths of

those Members voting in the Senate. An exception is provided for

legislation enhancing retirement security or reforming Medicare

pursuant to section 6 of the House resolution.

Subsection (c)(1) provides a sense of the House that legislation

should be enacted that excludes the outlays and receipts of the Social Security trust funds from official budgetary projections of the

surplus or deficit. Subsection (c)(2) further provides that legislation

should be considered that further safeguards the surpluses, such as

modifying pay-as-you-go requirements to permit the enactment of

retirement security and Medicare legislation or establishing a statutory limit on debt held by the public that would be reduced by the

amount of the Social Security surpluses.

Section 6 of the House resolution establishes a reserve fund for

retirement security and Medicare in the House. The Budget Committee chairman is permitted to increase the allocations and aggregates established in the budget resolution for legislation that either

enhances retirement security or extends the solvency of the Medicare trust funds or reforms the Medicare benefits or payment structure. The adjustments may be made for bills, amendments, and

conference reports.

The sum of the adjustments for all measures considered under

this section may not exceed an amount equal to an up-to-date estimate of the Social Security surplus for fiscal year 2000, the total

for fiscal years 2000 through 2004, and 2000 through 2009. Furthermore, the chairman is prohibited from making any adjustment

if the measure, together with any other measure considered under

this section, would exceed the estimated surplus for any of these

periods.

For purposes of this section, the projected Social Security surpluses are the levels assumed in the joint statement or the levels
69

set forth in CBO’s midsession report. In making this projection,

CBO is directed to consult with the Social Security trustees.

Section 7 of the House resolution establishes a reserve fund in

the House for special education. The Budget Committee chairman

is permitted to increase the budget aggregates and allocations to

the Committee on Appropriations for legislation providing appropriations for special education. The adjustments may be made for

bills, joint resolutions, amendments, and conference reports. Any

adjustments must be made in the amount of BA provided by the

measure for that purpose (and the resulting outlays) are subject to

two limitations. First, the adjustments may not exceed an up-todate estimate of the on-budget surplus. Second, the adjustments

may not exceed the amount necessary to fully fund special education at its authorize levels.

Section 8 of the House resolution provides that changes in the

budgetary aggregates and committee allocations permitted by the

resolution shall be made while the measure is pending and upon

enactment and shall be published in the Congressional Record. The

section also provides that the revised aggregates and allocations

shall be, for the purposes of the Congressional Budget Act of 1974,

the aggregates and allocations in this resolution.

Section 9 of the House resolution requires the Director of the

Congressional Budget Office to update CBO’s budgetary projections

on a quarterly basis.

Senate Amendment.—In addition to setting forth budgetary

levels as called for in the Budget Act, title I of the Senate amendment contains two provisions—the first, to address the fact that

Congress did not adopt a fiscal year 1999 budget resolution, and

the second, to focus attention on debt held by the public levels. Section 1(a)(2) of the Senate amendment contains language that incorporates the levels in the deeming resolution passed by the Senate

at the end of the 105th Congress as the fiscal year 1999 budget resolution. Section 101(6) provides advisory debt held by the public

levels in the budget resolution. These debt-held-by-the-public levels

reflect the fact that the resolution devotes the entire Social Security surplus to the reduction of debt held by the public.

Title II of the Senate amendment contains ten sections that either modify budget procedures for consideration of legislation or

authorize the Chairman of the Budget Committee to alter the levels in the budget resolution to accommodate Senate consideration

of certain legislation.

Section 201 of the Senate amendment provides a reserve fund

for Agriculture. The Senate amendment ensures that up to $6 billion is made available for legislation that addresses risk management and income assistance to agriculture producers through a reserve fund. If the Senate Agriculture Committee reports legislation

that provides risk management and income assistance to agriculture producers, then the Chairman of the Budget Committee is

authorized to increase the Agriculture Committee’s allocation of

budget authority and outlays to accommodate this additional

spending. The reserve fund provides that this legislation cannot

cause an on-budget deficit. The Senate amendment also permits

$500 million (within the $6 billion total) in agriculture spending in
70

fiscal year 2000, but this additional spending must be offset by reductions in direct spending in other programs.

Section 202 of the Senate amendment provides a tax reduction

reserve fund which allows the Chairman of the Budget Committee

to adjust the spending and revenue limits for legislation that reduces revenues as long as the legislation does not cause an onbudget deficit for the first fiscal year, the sum of the first five fiscal

years covered by the budget resolution, and the sum of the ten fiscal years covered by the resolution.

Section 203 of the Senate amendment contains a clarification

of the Senate’s pay-as-you-go rule make it clear that this rule still

applies until the budget is balanced excluding the transactions of

the Social Security trust fund. This change would prohibit the expenditure of Social Security surpluses, but would allow on-budget

surpluses to be used to offset tax reductions or direct spending increases.

Section 204 of the Senate amendment provides a majority

point of order against emergency spending provisions. The Senate

amendment would curb the abuse of spending the Social Security

surplus on so-called emergencies. Under sections 251(1)(b)(2)(A)

and 252(e) of the Balanced Budget and Emergency Deficit Control

Act of 1985, if Congress and the President designate a provision of

legislation an emergency, it is exempt from the statutory limits on

appropriations legislation and the pay-as-you-go requirement for all

other legislation. Under the Senate amendment, committee reports

and any statement of managers accompanying legislation containing emergency spending must contain an analysis whether the proposed emergency spending satisfies all the criteria set out in the

resolution. A point of order is available against any emergency

spending provision regardless of whether the criteria are met. The

Presiding Officer does not determine whether or not the criteria

have been satisfied when ruling on the point of order. If a point of

order was raised and sustained against an emergency spending

provision then the language making the emergency designation

and providing the spending would both be stricken from the measure by way of a procedure similar to the Byrd rule (see section 313

of the Congressional Budget Act of 1974).

Section 205 of the Senate amendment provides authority to the

Budget Committee chairmen to provide committee allocations. Section 302 of the Budget Act requires the statement of managers accompanying a conference report on a budget resolution to include

an allocation of spending authority to committees. At the time the

Senate amendment was adapted there existed the possibility that

this budget resolution would not go to conference. Therefore, the

Senate amendment requires the Chairman of the Budget Committee to file allocations that are consistent with the budget resolution.

Section 206 of the Senate amendment provides a reserve fund

for use of Outer Continental Shelf (OCS) receipts. This section

would allow committee allocations to be adjusted for legislation

providing new or additional direct spending for historic preservation, recreation and land, water, fish, and wildlife conservation efforts to support coastal needs and activities. This reserve fund is

intended to accommodate an increase in spending for these pro-
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grams if the increases are offset by reductions in direct spending.

It would not allow revenue increases to offset spending increases.

Section 207 of the Senate amendment provides a reserve fund

for Medicare managed care plans. This section permits committee

allocations to be adjusted for legislation providing new or additional direct spending for Medicare managed care plans agreeing to

serve elderly patients for at least 2 years and whose reimbursement was reduced because of risk management regulations. This

reserve fund is intended to accommodate an increase in spending

for these programs if they are offset by spending reductions. It

would not allow revenue increases to offset spending increases.

Section 208 of the Senate amendment provides a reserve fund

for Medicare and prescription drugs. This section permits committee allocations and spending aggregates to be adjusted for legislation that significantly extends the solvency of the Medicare Hospital Insurance (HI) Trust Fund without the use of transfers of new

subsidies from the general fund. This reserve fund is designed to

accommodate legislation that reforms the Medicare program and

extends the solvency of the HI trust fund. It would not allow revenue increases to offset spending increases. This reserve fund does

allow committee allocations and spending aggregates to be adjusted

to use an on-budget surplus to offset the additional cost of prescription drugs as part of legislation that reforms Medicare and significantly extends the solvency of the HI trust fund.

Section 209 of the Senate amendment contains language regarding the rulemaking authority of each of the Houses of Congress.

Section 210 of the Senate amendment provides a reserve fund

to foster the employment and independence of individuals with disabilities so long as the legislation does not increase the deficit or

reduce the surplus.

Conference Agreement.—Title II of the Conference agreement

includes the rules and procedures for implementing and enforcing

the budget resolution.

Section 201 of the Conference agreement creates a safe deposit

box for Social Security surpluses and reflects the language in section 5 of the House resolution with modifications. The resolution

contains the findings from section 5(a) and creates a majority point

of order from section 5(b) with modifications in the House and Senate against a budget resolution which sets forth an on-budget deficit unless the deficit results from legislation enacted pursuant to

section 202 of this resolution. The Conference agreement does not

contain the sense of Congress provisions set forth in section 5(c).

Section 202 of the Conference agreement provides a reserve

fund for retirement security and reflects the language of section 6

of the House resolution with modifications. The reserve fund for retirement security applies in both the House and Senate and permits the Budget Committee chairman to adjust the appropriate

budgetary aggregates and allocations for legislation that enhances

retirement security through structural programmatic reform. It is

the conferees’ intention that retirement security includes Medicare.

Section 203 of the Conference agreement provides a reserve

fund for Medicare legislation and reflects the language of section

208 of the Senate amendment with modifications. The Conference
72

agreement applies the reserve fund to the House and Senate, requires the legislation to make structural reforms to Medicare and

extend the solvency of the Medicare trust fund without the use of

intragovernmental transfers, and provides that it may be used for

legislation which includes a prescription drug benefit. The conferees do not intend for the reserve fund to encompass legislation

making incremental changes to the Medicare system.

Section 204 of the Conference agreement reflects the language

of section 201 of the Senate amendment regarding a reserve fund

which would increase the allocations by an additional $6 billion for

agriculture with modifications. The Senate amendment only applied in the Senate. Although the House does not have a comparable provision, it includes $6 billion in mandatory spending over

5 years for function 350 (Agriculture), and in the allocation to the

House Committee on Agriculture. The Conference agreement provides that the reserve fund applies in both the House and the Senate and may be triggered by legislation which provides risk management and/or income assistance to agricultural producers. For

the purposes of this section, risk management includes crop insurance.

Section 205 of the Conference agreement reflects the language

of section 202 of the Senate amendment regarding a tax reduction

reserve fund in the Senate. The House does not have a comparable

provision. The House has standing authority under section 302(g)

of the Congressional Budget Act of 1974 as amended by the Balanced Budget Act of 1997 to consider legislation reducing taxes in

excess of the levels in the budget resolution, if the revenue loss is

offset by spending reductions. The Conference agreement retains

the Senate language with modifications and only applies in the

Senate.

Section 206 of the Conference agreement reflects the language

of section 204 of the Senate amendment regarding an emergency

designation point of order with modifications. The House does not

have a comparable provision. However, according to the Oversight

Plan of the House Committee on the Budget, the Budget Committee will consider budget process reform during the spring of 1999

(which will include a codification of a definition of budgetary emergencies and establish a reserve fund for such emergencies). The

Conference agreement provides a super-majority point of order in

the Senate against language designating a provision as an emergency and includes an exemption for defense spending.

Section 207 of the Conference agreement reflects the language

of section 203 of the Senate amendment regarding the application

of the Senate’s pay-go point of order with a modification. The

House does not have a comparable provision (the pay-go point of

order is not applicable in the House of Representatives). The Conference agreement restates the entire pay-go point of order with

modifications which permit on-budget surpluses to be used for the

tax reductions or spending increases. The conferees intend that the

on-budget surplus be placed on the Senate’s pay-as-you-go scorecard. The baseline on-budget surpluses are shown in the table

below:
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Fiscal year—

5 yr. 10 yr. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Baseline on

Budget surpluses .............. ............ 8.510 54.930 33.301 52.100 72.459 123.375 154.858 174.844 204.332 148.841 878.709

Section 208 of the Conference agreement reflects the language

of section 8 of the House resolution regarding the application and

effect of changes in allocations and aggregates made pursuant to

the resolution with modifications. The Senate does not have a comparable provision. Subsections (a) and (b) of the Conference agreement would be applicable in both the House and Senate. Subsection (d) applies only in the House and provides that only the

first fiscal year and the five fiscal year totals of the section 302 allocations will be enforced under section 302 and 311 of the Budget

Act.

Section 209 of the Conference agreement clarifies the status of

the interim House and Senate levels for fiscal year 1999. The

House resolution does not have a comparable provision. However

interim budget allocations and aggregates for the House were

printed in the Congressional Record pursuant to H. Res. 5. Section

1(a)(2) of the Senate amendment contains language that incorporates the levels passed by the Senate at the end of the 105th

Congress as the fiscal year 1999 budget resolution. The conference

agreement reflects the Senate amendment with a modification

which clarifies that the levels previously submitted by the House

and the Senate constitute a concurrent resolution on the budget for

fiscal year 1999.

Section 210 of the Conference agreement reflects the language

of section 210 of the Senate amendment regarding a reserve fund

in the Senate for legislation that finances certain programs to foster the employment and independence of individuals with disabilities with modifications. The House does not have a comparable

provision. The Conference agreement adopts the Senate language

with technical amendments which conform the reserve fund to the

form of other reserve funds set out in the Conference agreement.

Section 211 provides for a reserve fund for a fiscal year 2000

surplus. The Conference agreement calls upon the Congressional

Budget Office (CBO) to complete its update of the economic and

budget forecast for the 2000 budget by July 1, 1999. If CBO’s revised projection shows an on-budget surplus for 2000, this reserve

fund allows the Chairman of the Budget Committee to adjust the

revenue aggregate, the pay-go balance, and the revenue reconciliation instructions by the amount of the on-budget surplus for 2000.

Section 212 provides for a reserve fund in the Senate for education for legislation that causes an increase in direct spending by

virtue of a change in the purpose for which previously appropriated

funds may be spent.

Section 213 contains the boilerplate rulemaking authority of

the House and the Senate.

Section 7 of the House resolution provides a reserve fund for

special education. The Senate amendment does not have a comparable provision. The House recedes to the Senate on this issue.
74

Section 9 of the House resolution requires the Congressional

Budget Office to provide quarterly updates of its projections. The

Senate amendment does not have a comparable provision. The

House recedes to the Senate on this issue.

Section 205 of the Senate amendment contained authority for

the Chairman of the Budget Committee in the Senate to provide

committee allocations in the Congressional Record in the event that

there was not a statement of managers accompanying a conference

report on the budget resolution. The House resolution does not

have a comparable provision. The Senate recedes to the House on

this issue.

Section 206 of the Senate amendment contained a reserve fund

for the use of OCS receipts. The House resolution does not have a

comparable provision. The Senate recedes to the House on this

issue.

Section 207 of the Senate amendment contained a reserve fund

for managed care plans. The House resolution does not have a comparable provision. The Senate recedes to the House on this issue.

Miscellaneous Provisions Regarding Budget Enforcement.—

Some interpret a surplus to be a negative deficit. The conferees intend that this interpretation not apply for the purposes of this resolution. More specifically, for the purposes of title II, a reduction in

the on-budget surplus is not considered an increase in the on-budget deficit.

Some 301 of the Conference agreement sets forth a sense of the

Congress regarding the protection of the Social Security surpluses.

The conferees strongly support this language—particularly the language found in subsection (b)(1) and intend that legislation should

be enacted that prevents the Social Security surpluses from being

used for any purpose other than Social Security, retirement security and the reduction of the federal debt.

SENSE OF CONGRESS, HOUSE AND SENATE PROVISIONS

House Resolution.—The House resolution included the following sense of the House or sense of Congress provisions:

Sense of Congress on the commission on international religious freedom.

Sense of the House on providing additional dollars to the

classroom.

Sense of Congress on asset-building for the working poor.

Sense of Congress on access to health insurance and preserving home health services for all Medicare beneficiaries.

Sense of the House on medicare payment.

Sense of the House on assessment of welfare-to-work programs.

Sense of Congress on providing honor guard services for

veterans’ funerals.

Sense of Congress on child nutrition.

Senate Amendment.—The Senate amendment included the following sense of the Senate or sense of the Congress provisions:

Sense of the Senate on marriage penalty.

Sense of the Senate on improving security for United

States diplomatic missions.
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Sense of the Senate on access to Medicare home health

services.

Sense of the Senate regarding the deductibility of health

insurance premiums of the self-employed.

Sense of the Senate that tax reductions should go to working families.

Sense of the Senate on the National Guard.

Sense of the Senate on effects of Social Security reform on

women.

Sense of the Senate on increased funding for the National

Institutes of Health.

Sense of Congress on funding for Kyoto protocol implementation prior to Senate ratification.

Sense of the Senate on Federal research and development

investment.

Sense of the Senate on counter-narcotics funding.

Sense of the Senate regarding tribal colleges.

Sense of the Senate on the Social Security surplus.

Sense of the Senate on need-based student financial aid

programs.

Findings; sense of Congress on the protection of the Social

Security surpluses.

Sense of the Senate on providing adequate funding for

United States international leadership.

Sense of the Senate that the Federal Government should

not invest the Social Security Trust Funds in private financial

markets.

Sense of the Senate concerning on-budget surplus.

Sense of the Senate on TEA–21 funding and the States.

Sense of the Senate that agricultural risk management

programs should benefit livestock producers.

Sense of the Senate regarding the modernization and improvement of the medicare program.

Sense of the Senate on providing tax relief to all Americans by returning non-Social Security surplus to taxpayers.

Sense of the Senate regarding tax incentives for education

savings.

Sense of the Senate that the One Hundred Sixth Congress,

First Session should reauthorize funds for the Farmland Protection Program.

Sense of the Senate on tax cuts for lower and middle income taxpayers.

Sense of the Senate regarding reform of the Internal Revenue Code of 1986.

Sense of the Senate regarding Davis-Bacon.

Sense of the Senate regarding access to items and services

under medicare program.

Sense of the Senate concerning autism.

Sense of the Senate on women’s access to obstetric and

gynecological services.

Sense of the Senate on LIHEAP.

Sense of the Senate on transportation firewalls.

Sense of the Senate on funding existing, effective public

health programs before creating new programs.
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Sense of the Senate concerning funding for special education.

Sense of the Senate on the importance of Social Security

for individuals who become disabled.

Sense of the Senate regarding funding for intensive firearms prosecution programs. Honest reporting of the deficit.

Sense of the Senate concerning fostering the employment

and independence of individuals with disabilities.

Sense of the Senate regarding asset-building for the working poor.

Sense of the Senate that the provisions of this resolution

assume that it is the policy of the United States to provide as

soon as is technologically possible an education for every American child that will enable each child to effectively meet the

challenges of the twenty-first century.

Sense of the Senate concerning exemption of agricultural

commodities and products, medicines, and medical products

from unilateral economic sanctions.

Sense of the Senate regarding capital gains tax fairness for

family farmers. Budgeting for the Defense Science and Technology Program.

Sense of the Senate concerning funding for the Urban

Parks and Recreation Recovery (UPARR) program.

Sense of the Senate on social promotion.

Sense of the Senate on women and Social Security reform.

Sense of the Congress regarding South Korea’s international trade practices on pork and beef.

Sense of the Senate regarding support for State and local

law enforcement.

Sense of the Senate on merger enforcement by Department

of Justice.

Sense of the Senate to create a task force to pursue the

creation of a natural disaster reserve fund.

Sense of the Senate concerning Federal tax relief.

Sense of the Senate on eliminating the marriage penalty

and across-the-board income tax rate cuts.

Sense of the Senate on importance of funding for embassy

security.

Sense of the Senate on funding for after school education.

Sense of the Senate concerning recovery of funds by the

Federal Government in tobacco-related litigation.

Sense of the Senate on offsetting inappropriate emergency

spending.

Findings; sense of Congress on the President’s fiscal year

2000 budget proposal to tax association investment income.

Sense of the Senate regarding funding for counter-narcotics initiatives.

Sense of the Senate on modernizing America’s schools.

Sense of the Senate concerning funding for the land and

water conservation fund.

Sense of the Senate regarding support for Federal, State

and local law enforcement and for the Violent Crime Reduction

Trust Fund.

Sense of the Senate regarding Social Security notch babies.
77

Conference Agreement.—Title III of the resolution contains the

following non-binding language that expresses the will or intent of

either or both Houses of the Congress:

Subtitle A: The Sense of the Congress provisions are as follows:

Sense of Congress on the protection of the Social Security

surpluses.

Sense of Congress on providing additional dollars to the

classroom.

Sense of Congress on asset-building for the working poor.

Sense of Congress on child nutrition.

Sense of Congress concerning funding for special education.

Subtitle B: The Sense of the House provisions are as follows:

Sense of the House on the commission on international religious freedom.

Sense of the House on assessment of welfare-to-work programs.

Subtitle C: The Sense of the Senate provisions are as follows:

Sense of the Senate that the federal government should

not invest the Social Security trust funds in private financial

markets.

Sense of the Senate regarding the modernization and improvement of the Medicare program.

Sense of the Senate on education.

Sense of the Senate on providing tax relief to Americans

by returning the non-Social Security surplus to taxpayers.

Sense of the Senate on access to Medicare services.

Sense of the Senate on law enforcement.

Sense of the Senate on improving security for United

States diplomatic missions.

Sense of the Senate on increased funding for the National

Institutes of Health.

Sense of the Senate on funding for Kyoto protocol implementation prior to Senate ratification.

Sense of the Senate on TEA–21 funding and the States.

Sense of the Senate that the one hundred sixth Congress,

first session, should reauthorize funds for the farmland protection program.

Sense of the Senate on the importance of Social Security

for individuals who become disabled.

Sense of the Senate on reporting of on-budget trust fund

levels.

Sense of the Senate regarding South Korea’s international

trade practices on pork and beef.

Sense of the Senate on funding for natural disasters.

From the Committee on the Budget:

JOHN R. KASICH,

SAXBY CHAMBLISS,

CHRISTOPHER SHAYS,

Managers on the Part of the House.

PETE V. DOMENICI,

CHUCK GRASSLEY,

DON NICKLES,
78

PHIL GRAMM, SLADE GORTON, Managers on the Part of the Senate.

Æ