II 

112TH CONGRESS 

1ST SESSION S. 1316 

To prevent a fiscal crisis by enacting legislation to balance the Federal 

budget through reductions of discretionary and mandatory spending. 

IN THE SENATE OF THE UNITED STATES 

JUNE 30, 2011 

Mr. ENZI introduced the following bill; which was read twice and referred to 

the Committee on the Budget 

A BILL 

To prevent a fiscal crisis by enacting legislation to balance 

the Federal budget through reductions of discretionary 

and mandatory spending. 

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 ‘‘One Percent Spending 

5 Reduction Act of 2011’’. 

6 SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE. 

7 (a) FINDINGS.—The Congress finds the following: 

8 (1) The fiscal crisis faced by the Federal Gov9 ernment demands immediate action. 


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1 (2) The dramatic growth in spending and debt 

2 in recent years threatens our economic and national 

3 security: 

4 (A) Federal spending has grown from 18 

5 percent of GDP in 2001 to 24 percent of GDP 

6 in 2010. 

7 (B) Total Federal debt exceeds $14 trillion 

8 and has increased $4 trillion in the past three 

9 years alone. 

10 (C) Without action, the Federal Govern11 ment will continue to run massive deficits in the 

12 next decade and total Federal debt will rise to 

13 $24 trillion by 2021. 

14 (D) Interest payments on this debt will 

15 soon rise to the point where balancing the 

16 budget as a matter of policy is beyond the reach 

17 of Congress. 

18 (3) From 1980 to 2010, Federal revenues aver19 aged 18 percent of GDP and are projected to return 

20 to that level within the next decade. 

21 (4) Absent reform, the growth of Social Secu22 rity, Medicare, and Medicaid will overwhelm all 

23 other Federal programs and consume all projected 

24 tax revenues. 


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1 (b) PURPOSE.—The purpose of this Act is to address 

2 the fiscal crisis by— 

3 (1) acting quickly to balance the Federal budg4 et and eliminate the parade of deficits and bal5 looning interest payments; 

6 (2) achieving balance by reducing spending one 

7 percent per year until spending equals projected 

8 long-term revenues; and 

9 (3) reforming entitlement programs to ensure 

10 long-term fiscal stability and balance. 

11 SEC. 3. ESTABLISHMENT AND ENFORCEMENT OF SPEND12 ING CAPS. 

13 (a) OUTLAY CAPS.—The Balanced Budget and 

14 Emergency Deficit Control Act of 1985 is amended by in15 serting after section 253 the following new section: 

16 ‘‘SEC. 253A. ESTABLISHING OUTLAY CAPS. 

17 ‘‘(a) OUTLAY CAPS.—In this section, the term ‘outlay 

18 cap’ means: 

19 ‘‘(1) FISCAL YEAR 2012.—For fiscal year 2012, 

20 the aggregate outlays (less net interest payments) 

21 for fiscal year 2012 shall be $3,382,000,000,000, 

22 less one percent. 

23 ‘‘(2) FISCAL YEAR 2013.—For fiscal year 2013, 

24 the aggregate outlays (less net interest payments) 


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1 for fiscal year 2013 shall be the amount computed 

2 under paragraph (1), less one percent. 

3 ‘‘(3) FISCAL YEAR 2014.—For fiscal year 2014, 

4 the aggregate outlays (less net interest payments) 

5 for fiscal year 2014 shall be the amount computed 

6 under paragraph (2), less one percent. 

7 ‘‘(4) FISCAL YEAR 2015.—For fiscal year 2015, 

8 the aggregate outlays (less net interest payments) 

9 for fiscal year 2015 shall be the amount computed 

10 under paragraph (3), less one percent. 

11 ‘‘(5) FISCAL YEAR 2016.—For fiscal year 2016, 

12 the aggregate outlays (less net interest payments) 

13 for fiscal year 2016 shall be the amount computed 

14 under paragraph (4), less one percent. 

15 ‘‘(6) FISCAL YEAR 2017.—For fiscal year 2017, 

16 the aggregate outlays (less net interest payments) 

17 for fiscal year 2017 shall be the amount computed 

18 under paragraph (5), less one percent. 

19 ‘‘(7) FISCAL YEAR 2018 AND SUBSEQUENT FIS20 CAL YEARS.—(A) For fiscal year 2018 and each sub21 sequent fiscal year, the aggregate outlays shall be 18 

22 percent of the gross domestic product for that fiscal 

23 year as estimated by OMB prior to March of the 

24 previous fiscal year. 


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1 ‘‘(B) Notwithstanding paragraph (A), for any 

2 fiscal year beginning with fiscal year 2019, the ag3 gregate projected outlays may not be less than the 

4 aggregate projected outlays for the preceding fiscal 

5 year. 

6 ‘‘(b) SEQUESTRATION.— 

7 ‘‘(1) IN GENERAL.— 

8 ‘‘(A) EXCESS SPENDING.—Not later than 

9 45 calendar days after the beginning of a fiscal 

10 year, OMB shall conduct a sequestration to 

11 eliminate the excess outlay amount. 

12 ‘‘(B) DEFINITIONS.— 

13 ‘‘(i) For fiscal years 2012 through 

14 2017 and for purposes of this subsection, 

15 the term ‘excess outlay amount’ means the 

16 amount by which total projected Federal 

17 outlays (less net interest payments) for a 

18 fiscal year exceeds the outlay cap for that 

19 fiscal year. 

20 ‘‘(ii) For fiscal year 2018 and in sub21 sequent fiscal years and for purposes of 

22 this subsection, the term ‘excess outlay 

23 amount’ means the amount by which total 

24 projected Federal outlays for a fiscal year 

25 exceeds the outlay cap for that fiscal year. 


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1 ‘‘(2) SEQUESTRATION.— 

2 ‘‘(A) On August 15 of each year, CBO 

3 shall issue a sequestration preview report as de4 scribed in section 254(c)(4). 

5 ‘‘(B) On August 20 of each year, OMB 

6 shall issue a sequestration preview report as de7 scribed in section 254(c)(4). 

8 ‘‘(C) On October 31 of each year, OMB 

9 shall issue its final sequestration report as de10 scribed in section 254(f)(3). It shall be accom11 panied by a Presidential order detailing uniform 

12 spending reductions equal to the excess outlay 

13 amount as defined in this section. 

14 ‘‘(D) The reductions shall generally follow 

15 the process set forth in section 253 and 254, 

16 except as provided in this section. 

17 ‘‘(3) CONGRESSIONAL ACTION.—If the August 

18 20 OMB report projects a sequestration, the Com19 mittees on Budget of the Senate and House of Rep20 resentatives may report a resolution directing their 

21 committees to change the existing law to achieve the 

22 spending reductions outlined in the August 20 re23 port necessary to meet the outlay limits. 

24 ‘‘(c) NO EXEMPT PROGRAMS.—Section 255 and sec25 tion 256 shall not apply to this section, except that payVerDate Mar 15 2010 22:03 Jul 05, 2011 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1316.IS S1316

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1 ments for net interest (budget function 900) shall be ex2 empt from the spending reductions under sequestration. 

3 ‘‘(d) LOOK BACK.—If, after November 14, a bill re4 sulting in outlays for the fiscal year in progress is enacted 

5 that causes excess outlays, the excess outlay amount for 

6 the next fiscal year shall be increased by the amount or 

7 amounts of that breach.’’. 

8 (b) CONFORMING AMENDMENTS TO BBEDCA.— 

9 (1) SEQUESTRATION PREVIEW REPORTS.—Sec10 tion 254(c)(4) of the Balanced Budget and Emer11 gency Deficit Control Act of 1985 is amended to 

12 read as follows: 

13 ‘‘(4) OUTLAY CAP SEQUESTRATION REPORTS.— 

14 The preview reports shall set forth for the budget 

15 year estimates for the following: 

16 ‘‘(A)(i) For each of budget years 2012 

17 through 2017: the aggregate projected outlays 

18 (less net interest payment), less one percent. 

19 ‘‘(ii) For budget year 2018 and each sub20 sequent budget year: the estimated gross do21 mestic product (GDP) for that budget year. 

22 ‘‘(B) The amount of reductions required 

23 under section 253A. 


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1 ‘‘(C) The sequestration percentage nec2 essary to achieve the required reduction under 

3 section 253A.’’. 

4 (2) FINAL SEQUESTRATION REPORTS.—Section 

5 254(f)(3) of the Balanced Budget and Emergency 

6 Deficit Control Act of 1985 is amended to read as 

7 follows: 

8 ‘‘(3) OUTLAY CAPS SEQUESTRATION RE9 PORTS.—The final reports shall contain all the infor10 mation required in the outlay cap sequestration pre11 view reports. In addition, these report shall contain, 

12 for the budget year, for each account to be seques13 tered, estimates of the baseline level of sequestrable 

14 budgetary resources and resulting outlays and the 

15 amount of budgetary sources to be sequestered and 

16 result in outlay reductions. The report shall also 

17 contain estimates of the effects on outlays on the se18 questration of each outyear for direct spending pro19 grams.’’. 

20 (3) REPEAL OF EXPIRATION DATE.—Section 

21 275 of the Balanced Budget and Emergency Deficit 

22 Control Act of 1985 is repealed. 

23 (c) ENFORCEMENT.—Title III of the Congressional 

24 Budget Act of 1974 is amended by adding after section 

25 315 the following: 


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1 ‘‘SEC. 316. ENFORCEMENT PROCEDURES. 

2 ‘‘(a) OUTLAY CAPS.—It shall not be in order in the 

3 House of Representatives or the Senate to consider any 

4 bill, joint resolution, amendment, or conference report that 

5 includes any provision that would cause the most recently 

6 reported, current outlay cap set forth in section 253A of 

7 the Balanced Budget and Emergency Deficit Control Act 

8 of 1985 to be breached. 

9 ‘‘(b) WAIVER OR SUSPENSION.— 

10 ‘‘(1) IN THE SENATE.—The provisions of this 

11 section may be waived or suspended in the Senate 

12 only by the affirmative vote of two-thirds of the 

13 Members, duly chosen and sworn. 

14 ‘‘(2) IN THE HOUSE.—The provisions of this 

15 section may be waived or suspended in the House of 

16 Representatives only by a rule or order proposing 

17 only to waive such provisions by an affirmative vote 

18 of two-thirds of the Members, duly chosen and 

19 sworn. 

20 ‘‘(c) POINT OF ORDER PROTECTION.—In the House, 

21 it shall not be in order to consider a rule or order that 

22 waives the application of paragraph (2) of subsection (b). 

23 ‘‘(d) MOTION TO SUSPEND.—It shall not be in order 

24 for the Speaker to entertain a motion to suspend the appli25 cation of this section under clause 1 of rule XV.’’. 


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1 SEC. 4. CONFORMING AMENDMENTS. 

2 The table of contents set forth in— 

3 (1) section 1(b) of the Congressional Budget 

4 and Impoundment Control Act of 1974 is amended 

5 by inserting after the item relating to section 315 

6 the following new item: 

‘‘Sec. 316. Enforcement procedures.’’; 

7 and 

8 (2) section 250(a) of the Balanced Budget and 

9 Emergency Deficit Control Act of 1985 is amended 

10 by inserting after the item relating to section 253 

11 the following new item: 

‘‘Sec. 253A. Establishing outlay caps.’’. 

12 SEC. 5. EFFECTIVE DATE. 

13 This Act and the amendments made by it shall apply 

14 to fiscal year 2012 and subsequent fiscal years, including 

15 any reports and calculations required for implementation 

16 in fiscal year 2012. 

Æ 


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