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103D CONGRESS

1ST SESSION H. R. 484

To improve budgetary information by requiring that the unified budget presented by the President contain information which facilitates consideration of choices between spending which is consumption oriented, spending which is of a development character, and spending which is in

the nature of a capital investment, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 6, 1993

Mr. THORNTON introduced the following bill; which was referred to the

Committee on Government Operations

A BILL

To improve budgetary information by requiring that the unified budget presented by the President contain information which facilitates consideration of choices between

spending which is consumption oriented, spending which

is of a development character, and spending which is

in the nature of a capital investment, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Capital Budgeting Act

5 of 1993’’.
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1 SEC. 2. STATEMENT OF FINDINGS AND PURPOSE.

2 (a) STATEMENT OF FINDING.—The Congress finds

3 that—

4 (1) the objective of enhancing long-term eco5 nomic growth is not well served by a budget process

6 focused on short-term results,

7 (2) long-term economic growth depends not

8 only upon a stable social, political, and economic en9 vironment and a higher level of national savings, but

10 also upon a sound public infrastructure, an educated

11 citizenry and workforce, an investment in research

12 and the discovery of knowledge, and the harnessing

13 of inventive genius into the workplace and market14 place,

15 (3) the existing presentation of the Federal

16 Budget obscures the distinctions between long-term

17 capital investments, expenditures of a developmental

18 character, and current operational spending, and

19 (4) the public interest will be served by a Fed20 eral Budget presentation which presents information

21 showing long-term effects of expenditures.

22 (b) PURPOSE.—It is the purpose of this Act to re23 quire that the unified budget present—

24 (1) an operating budget, and

25 (2) an investment budget divided into—

26 (A) federally-owned capital, and
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1 (B) developmental investments,

2 for each of the 3 major components of the budget

3 (general, trust, and enterprise funds) in order to en4 sure a continued focus on the Government’s total fi5 nancial operations, while providing better and more

6 relevant information upon which to base both overall

7 fiscal policy as well as program priorities within the

8 Federal Budget.

9 SEC. 3. CAPITAL AND OPERATING BUDGETS.

10 (a) IN GENERAL.—Title 31, United States Code, is

11 amended by inserting after section 1105 the following new

12 section:

13 ‘‘SEC. 1105A. CAPITAL AND OPERATING BUDGETS.

14 ‘‘(a)(1) The budget of the United States submitted

15 by the President under section 1105 of this title shall be

16 a unified budget composed of—

17 ‘‘(A) an operating budget, and

18 ‘‘(B) an investment budget divided into feder19 ally-owned capital and developmental investments.

20 ‘‘(2) Operating and investment budgets shall be pre21 sented separately for unified funds, general funds, trust

22 funds, and enterprise funds.

23 ‘‘(b)(1) Actual, estimated, and proposed amounts

24 shall be presented for unified funds, general funds, trust
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1 funds, and enterprise funds, and, at a minimum, shall

2 contain:

3 ‘‘(A) For the operating budget:

4 ‘‘(i) Operating revenues.

5 ‘‘(ii) Operating expenses.

6 ‘‘(iii) Operating surplus/deficit before

7 interfund transfers.

8 ‘‘(iv) Interfund transfers.

9 ‘‘(v) Operating surplus/deficit.

10 ‘‘(vi) Federal expenditures financing the

11 operating expenses of State and local govern12 ments.

13 ‘‘(B) For the investment budget:

14 ‘‘(i) For federally-owned capital: the office

15 buildings, equipment, and other assets that are

16 owned by the Government for use in its oper17 ations together with a showing how such assets

18 will improve the efficiency and effectiveness

19 with which government agencies carry out their

20 missions.

21 ‘‘(ii) For developmental investments (in22 cluding grants and loans to non-Federal entities

23 for improving physical infrastructure, research

24 and development, and investment in human

25 capital through education and training): the
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1 amounts to be invested together with a projec2 tion of how such investments will improve the

3 prospects for higher rates of economic growth

4 on the future.

5 ‘‘(2) For both categories of investment budgets, the

6 following information will be presented:

7 ‘‘(A) Investment funds together with investment

8 revenues.

9 ‘‘(B) Financing requirements before interfund

10 transfers.

11 ‘‘(C) Interfund transfers.

12 ‘‘(D) Projected effects upon economic growth.

13 ‘‘(3) The investment budget shall represent only the

14 major activities, projects, and programs which support the

15 acquisition, construction, alteration, and rehabilitation of

16 such investment assets and the major programs and activi17 ties which support nonmilitary research and development,

18 education, and job training. All other activities, projects,

19 and programs shall be represented in the operating

20 budget.’’.

21 (b) CLERICAL AMENDMENT.—The table of sections

22 for chapter 11 of title 31, United States Code, is amended

23 by inserting after the item relating to section 1105 the

24 following new item:

‘‘1105A. Capital and operating budgets.’’

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